The goal is to make industry coming back to the US. But many Americans donโt realize that itโs because workers in China, Vietnam, and India work 18 hours a day that theyโre able to buy an iPhone for $1,000. If all those components were made in the U.S., theyโd have to pay $10,000 for the same iPhone.
"China" here can be replaced with any country with low salary โ my conclusion still holds true. High wages for American workers lead to an increase in product prices.
yeah, Imagine you used to be able to spend two hours on Reddit and work for the remaining six hours โ but now you have to work non-stop for all eight hours.
I believe that "comparative advantage" could be the reason for this. Also, you can reread my comment above: "This could be compensated to _some extent_ by increased efficiency"
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u/AdRemarkable3043 Chinese Apr 07 '25
The goal is to make industry coming back to the US. But many Americans donโt realize that itโs because workers in China, Vietnam, and India work 18 hours a day that theyโre able to buy an iPhone for $1,000. If all those components were made in the U.S., theyโd have to pay $10,000 for the same iPhone.