We’re in unprecedented territory with huge chunks of China going offline. The world’s factory is disrupted for an indefinite period of time.
Forget new electronics, even maintaining your car may be a problem if this continues. The replacement parts are often made in China too.
Forget new electronics, even maintaining your car may be a problem if this continues. The replacement parts are often made in China too.
The disruption affects not just auto parts, but medical supplies, industrial chemicals, electronic components.
Unexpectedly, the tariffs of the last few years may have stemmed the blow! They caused people to move production outside China. Though the virus may spread there too...
Unexpectedly, the tariffs of the last few years may have stemmed the blow! They caused people to move production outside China. Though the virus may spread there too...
The argument for comparative advantage is sound: you get greater efficiencies in peacetime. Outsource everything other than your core competency.
One argument against is that there may be supply chain disruption due to sanctions or war (or an unexpected virus).
One argument against is that there may be supply chain disruption due to sanctions or war (or an unexpected virus).
In general, the ethical argument for free trade is compelling. It isn’t just economically efficient, it disincentivizes war by making peace more profitable.
Still, the ability to build if you can’t buy (for whatever reason) is a useful skill to have. We may see more autarky.
Still, the ability to build if you can’t buy (for whatever reason) is a useful skill to have. We may see more autarky.
