I am trying to point out that the manufacturing capabilities that America had has bee purposefully destroyed. This put America in a very intresting position...this country still consumes a massive amount of products. (I am trying to point out the albatros that was created. This country has always consumed alot of stuff, all that was done is 'nefarious individuals' created conditions so 95% of Americas manfacturing base went overseas. Until recently Americans were forced to buy stuff that was made over seas. What president Donald J. Trump did was he cut off the spigot that led into the wallets of other countries. If we look at the law of supply and demand...the demand, inside America, for stuff has always been high but bad guys made it so the stuff was only made elsewhere.
The law of supply and demand is an economic principle stating that the price of a good or service is determined by the relationship between its availability (supply) and the desire for it (demand). When supply exceeds demand, prices tend to fall, while prices rise when demand exceeds supply, aiming for an equilibrium where the quantity supplied matches the quantity demanded.
The example will be a new car, all that Trump had to do was say 'if the car is made in another country (say Mexico) then the manufacture has to pay a finders fee for the privileged of being able to compete in the American economy'
Here is the question, sure you can build a plant in Mexico, the company can hire cheap construction workers and hire workers that proably have more relaxed proctive policies...but at the end of the day your main customers are U.S. citizens. In the past corporations were allowed to beat up on Americans (look at Detroit), but Trump said "thats what you think your gonna do"
Its the same deal as a parking ticket...you are allowed to park your car in numerous places, but if you do not follow the rules (like parking in a fire lane) then you will recieve a ticket.
In the same way Americans are pretty nice (consider all of the aid poor people can recieve) but in times past bad people wanted to treat people badly so that they could become richer.
That is the point where the rubber meets the road, capitalism can be an extremly brutal system unless certain gaurdrails are created...the basic principle is "treat people well". As I have said certain bad men thought that it did not matter how they treated people...as long they recieve more money. EX. you can build your car plant in a country that does not have strict saftey rules for the workers and you can make the best cars that are low cost...but if you try to cut corners in America then you will be finned (companies that have shady business ethics are finned if they want to do business with Americans)
America is in an enormously powerful position...if the president says 'companies must have steller business practices if they want to compete with U.S. workers'. Basicly that sentence sectioned off 27.5% of the consumers, so its whose side is it gonna be? If your a salesman one sale makes up over 1/4 of your profits.
As of 2025, the United States accounts for approximately 27.49% of the global GDP.
(Feel free to ask questions, I enjoy talking about proper economics!)
