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Cake day: July 1st, 2023

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  • Tariffs suck for the country implementing the tariff. But before I tell you why they suck, let me tell you the way they are supposed to help.

    Here’s the way tariffs are supposed to work according to people that like tariffs (spoiler alert, this thing I’m about to describe is a fantasy and I’ll explain why).

    Let’s say people in the US can make widgets for $10 and sell them for $12 and have a viable business. But mean old foreign country can make widgets for $5 and sell them for $7 and have a viable business. The foreign country sells the people of the US widgets for $7, which is great if you live in the US and want to buy a widget but sucks if you live in the US and want to make a widget.

    Tariffs are supposed to protect local businesses by making foreign goods less competitive. Let’s say we pass a law putting a $10 tariff on foreign widgets. I used to import widgets from foreign country and pay the manufacturer $5 per widget and sell them to Americans for $7. Now when I import the widget from the foreign country I still pay the manufacturer $5 per widget but now I have to pay the US government a tariff of $10 per widget. Each imported widget now costs me $15 and so I have to sell them for $17 to make a profit. This now means that American made widgets are competitive again, the locally made $12 widget is a great deal compared to the $17 imported one. Great if you are a US widget maker and shitty if you are a US widget buyer.

    Now you might notice the people in the US buying widgets, even in the best fantasy scenario, end up getting dicked over. The theory goes that widget making jobs are good though and if we do that enough then everyone will have to pay more for goods but we will have lots of jobs making stuff that pay ok.

    Now here’s the part that really, really sucks. Let’s say you are a US widget maker and now you know that your foreign competition can’t make a widget for less than $17. You could sell your widgets for $12 and have a viable business or you could sell them for $16.99 and have a super profitable business. I’ll just gesture broadly at the sea of corporate greed we find ourselves floating in and let you decide which is more likely.

    Tariffs induce even local manufacturers to raise prices because it hurts competition. It’s basically a massive transfer of wealth from local consumers to local producers by cutting out the foreign producers and the competitive pressure they exert on the market. This is why basically every economist said “do this and kill the economy”

    So why do people want tariffs? Well the promise for your average voter is that the tariffs are going to bring back good solid blue collar jobs. You can go work in a factory and pump out widgets and get a nice middle class paycheck. It’s a nice sales pitch and a lot of people would really want that to be true. I suspect though that the manufacturers will automate most of this work and pocket the profits, again, gestures broadly at the late stage capitalism hellscape all around us.







  • I gave you 3 concrete examples of things happening right now. I put them in the context you asked for. You said I’m over pattern matching the past, which tells me you got to company towns and quit reading.

    Feel free to respond but know that I’m done engaging with you. If you can’t engage in good enough faith to read what I wrote then I don’t really feel the need to humor you any longer.

    Your brilliant solution is to remove zoning laws and building codes. As an engineer I can tell you those codes are written in blood, they exist because people were hurt or killed due to some home builder thinking “do I really need to ground this, I could save a 50 cents and I would really like 50 cents”

    You are sitting there thinking you’ve cracked the code and if you could just get people to understand you’d win. I understand your point just fine, it’s just wrong headed.


  • immutable@lemm.eetoMemes@lemmy.mlCapitalism and fascism
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    5 months ago

    What do you think they would do with less government? Do you think they would be benevolent titans of industry and not hurt you if it meant greater profits for them?

    It’s not like we have to wonder. There is plenty of history to go read about what people like Jeff Bezos and Elon Musk would do without any restraints on their power. Factory towns where workers are paid in scrip and kept in effective indentured servitude were a real thing that happened.

    What magical force brings down the price of necessities when there’s less government? Look at what the free market did with respect to Amazon. Investors are happy to play the long game, they bank rolled Amazon for 9 years to compete against retailers, when the locally owned hardware store has to turn a profit to keep the lights on but the capital class says Amazon can sell hammers at a loss for 9 years, then at some point the local hardware store goes out of business. An enterprise that doesn’t need to turn a profit can out compete one that does.

    Why would investors be ok with Amazon not turning a profit for 9 years? Because they knew that once they crushed the competition, they would have a bunch of people locked in, habituated to using Amazon and they could slowly decrease quality while increasing prices and make a return on that investment. They created a machine that destroyed jobs and businesses and for a while the consumer got a great deal. Subsidized high quality goods conveniently delivered to your door.

    That isn’t a gift though, it’s a Trojan horse. That subsidy stops at some point and Amazon has a nearly impenetrable moat. Every year they can increase the cost of prime, increase the cost of goods, and now half the search results are some jumble of letters company that was just formed to shovel low quality goods at you.

    The end result is harm to you as a consumer, a worker, and a taxpayer.

    Those retail jobs are gone, instead of dozens of local business each with a workforce in every town, there can be one mega warehouse with a couple hundred people serving a huge swath of customers. This is great for amazons bottom line but if you need to work to make money to buy food and shelter, it means fewer jobs. The law of supply and demand works for the labor market just like it does anywhere else, if the demand for jobs is the same and the supply is lower then the glut of workers means employers can pay less. If there are enough unemployed people they will be willing to accept lower pay, they will be willing to accept worse working conditions, and if they aren’t there’s a hundred more unemployed people willing to take that spot. Those are direct harms to people.

    Those locally owned businesses use to make up the tax bases of communities. Now instead of buying that hammer from your neighbor, you are buying a Chinese hammer from Bezos. Towns still need fire departments, police, roads, so your taxes go up because it has to come from somewhere.

    Now when you go to buy a product you get whatever you get from Amazon. Enshittification is a real thing. And people can’t compete with Amazon, with their scale and their reach and their logistics. The best you can hope for is that people will try to sell through Amazon, but amazon in control of the search and there are thousands of dropshippers working to get their slice of the pie pushing quality down down down as they import cheaply made goods from alibaba and resell it to you at a mark up.

    So no, the price of necessities being high is not good for me, but the government isn’t doing that. Capitalism is about the accumulation of profits to those with the capital, and more money means more ability to buy the market. There’s a reason that monopolies form in capitalist markets. Greater profits allow for greater market capture which leads to greater profits which leads to greater market capture and so on.

    Competition isn’t sufficient because nothing stops people with a lot of money from going “outcompete them for a while by selling at a loss, we can do that longer than them and then we can jack up the price once our competitors exit the market.” This is exactly what investors did with Amazon.

    So yes, they have the power to hurt me and you. You keep talking about less government, ok fine, what part? Which function of government would you remove that would improve the situation? What mechanism replaces that function and how does it work?


  • immutable@lemm.eetoMemes@lemmy.mlCapitalism and fascism
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    5 months ago

    I hear your point it’s just wrong.

    It’s clear that you believe the government is the bad thing here. I see you completely skipped over all my points about how their market manipulation harms the consumer and the worker. That manipulation is purely from them having a bunch of money and using it to their advantage and does not require a government boogie man.

    It’s not that I can’t see the point you want to make, they corrupt the government and then the governments power is the thing that hurts me. First it’s wrong because if we were some sort of anarchy society, bezos using investor money to undersell and falsely outcompete the rest of the market until he has a stranglehold on the economy and can exact a tax on every item sold would still happen.

    The fact that you don’t think high speed rail can be built, despite it existing all over the world, is just your opinion. The fact that musk has said he promoted the hyperloop in hopes of pulling funding and support from high speed rail is a thing that happened in reality

    Let’s say that we took the power away from the government. Poof just like that they can’t regulate how much rat shit is in your Amazon prime food or if Elon can dump the toxic waste from his battery production in your drinking water. The harm of regulatory capture and lobbyist power just gets replaced with capitalists directly harming you. How is that better?


  • immutable@lemm.eetoMemes@lemmy.mlCapitalism and fascism
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    5 months ago

    I’ve been so sad to see the privatization of NASA. It feels very similar to me. SpaceX celebrating about launching a rocket into low earth orbit after spending billions in taxpayer money. How is this progress? We could do it back in the 60s with the equivalent computing power you can find in a $7 wristwatch today. Why didn’t we just keep building on our success, no we had to privatize, so that we could reach a beautiful end goal where space would not be for science and exploration funded by the people with its fruits improving humanity.

    No we all had to pull together so spacex can build a massive taxpayer funded toll booth and every time America would like to visit the stars some billionaires can collect their cut. And people cheer


  • Are you serious?

    Jeff Bezos has spent millions of dollars on union busting to prevent his workers from collectively bargaining for better wages. This massive chunk of the workforce then continues to work for less than they are worth because of his illegal tactics. This creates a systemic downwards pressure on wages across the entire workforce. Investors in the capital class gave Amazon a blank check to crush retailers for decades while losing money, because they knew at some point he would have a grip on the market and could stop providing high quality goods and start pumping out cheap garbage from companies like KYZGURK and BULJCOW and reap in massive profits. The capital class destroyed the retail sector and now you get the “convenience” of every purchase making him profits while the items you buy consistently decrease in quality.

    Musk admitted to pushing the hyper loop, knowing it was unworkable, to try to prevent California’s high speed rail project. There’s no bullet train I can hop on to get to LA right now because of the power he flexed.

    Musk just said he would put $45m a month into a trump super pac, his wealth makes him think that he should get to decide the outcome of our election. He purchased twitter and now has control over the algorithmic feed consumed by millions of my countrymen, directly influencing their thoughts and feelings an any range of topics.

    They both contribute to the government to write laws favorable to them, reducing their tax burden and increasing mine. They promote candidates that are aligned with their corporate interests and if those interests include eroding workers rights and moving negative externalities into the environment that has the water I drink, the air I breathe, and the food I eat, fuck me.

    Bezos owns the Washington post and can move public opinion in whichever way he wants. If he wants people to think that net neutrality sucks, he can spend all day having the columnists churn that shit out, changing both politicians and the public’s sentiment on the topic by cherry picking data and presenting the most one sided arguments imaginable.






  • Based on your interpretation every group could simply be redefined into illegitimate.

    • We are for democracy
    • Oh so you think that monarchy is bad and you want to define yourself as excluding loyal subjects of the king! That will never be legitimate.

    Leftist think that democracy should extend into the economic realm as well and what we should do with the means of production should be governed by the people and not just whoever happens to own the capital. One way to word that would be anti-capitalist, but another way would be to word it as economic democracy.

    So if you require an inclusive definition for something to be legitimate, there you go. Liberals in America do not seek to do away with capitalism, you would be hard pressed to find any that do. If you support capitalism, then by the fact that capitalism’s private ownership is mutually exclusive with democratic control of the economy, you don’t support a democratic control of the economy.

    You can’t have a vegan meat eater, not because of any moral assessment on veganism or meat eating, but because those two terms are mutually exclusive.


  • This part of your post is interesting to me

    If more and more people started voting 3rd party, how long would it feasibly take to enact change? 2 election cycles? 4? 10? Does it ever even happen?

    Mathematically as long as the system is first-past-the-post, it always tends towards 2 major parties. Let’s say we could solve the prisoners dilemma we find ourselves caught in, it’s interesting sometimes to consider what the results of outlier scenarios would be.

    So let’s imagine a world in which you could convince voters to embrace 3rd parties. Pew Research has some voter statistics that are useful https://www.pewresearch.org/politics/2023/07/12/voter-turnout-2018-2022/

    Only 37% of Americans reliably voted in the last 3 elections with a roughly even split between the two major parties. So let’s use 40% with an even split to make the numbers more convenient.

    So we have an America where 20% of eligible voters vote for the Democratic Party, 20% vote for the Republican Party, and 60% stay home. Let’s imagine a best case scenario for 3rd party voting where a quarter of the democrats, a quarter of the republicans, and an additional 10% of the population that would sit it out are activated by the new choices these parties represent. This america now looks like. 15% reliably vote for democrats, 15% reliably vote for republicans, 20% are willing to vote for a 3rd party and now only 50% sit out.

    Because it’s first past the post voting, there are many ways that the 20% can split amongst multiple parties such that the incumbent major parties still win the plurality. It actually doesn’t take much, 2 third parties splitting as unevenly as 14% of the population and 6% of the population ends up still letting the majority party with 15% of the population win. So we come to find that even with a larger population of possible voters than the 2 major parties, they still have to work together quite a bit to win.

    Now let’s further imagine that the third parties are able to hold together they form a new independent party that get at least 16% of the population to vote for them and beat the incumbent majority parties.

    Have we freed ourselves from being dominated by 2 parties? No, we just switched who does the dominating. The voters in the democratic and Republican parties will see which way the wind is blowing and shuffle around until there are two parties competing again, because in fptp there is a serious penalty to spoiler votes.

    Now maybe it would be worthwhile just to put new people in charge. But the most likely outcome is whoever you elect ends up bowing to the same pressures that make the current 2 parties such trash fires and the donors that wrote checks with elephants or donkeys on them to have their way will be just as capable of writing out those donations to a bullmouse.

    I’m all for electoral reform and reform in the government. But make no mistake, people posting on Lemmy that you shouldn’t vote because both options suck aren’t doing it out of a serious concern about legitimizing the process. The process is flawed but there’s no outcome of the election where they go “brave patriots all over this nation sat at home and so it doesn’t count.”

    Real reform would require sustained and substantial action from the populace and even if you were to prefer that method of action, it would obviously still be advantageous to vote for the candidate that you think would create policies and laws under which that grassroots action would have the highest probability of success.