@DavidLiptonWI Is that you?A large increase in imports is simply due to a low savings rate - this is the sectoral balances identity: the fiscal balance + household savings minus business investment is equal to imports minus exports. The U.S. has a low savings rate because it is so wealthy and has been so stable and wealthy for a century, so white collar U.S. professionals don’t need any precautionary savings. They save for retirement in 401(k)s to fund the next generation of U.S. technological hegemony and economic growth (see for example, Nvidia having a 770% Y/Y increase in profit, funded by stock sales to pay for R&D, ) but have some liquidity in transaction accounts necessary for day-to-day expenses but can otherwise splurge on meals out, vacations, sports games, electronics, and anything else their heart desires. Their employment is near infinitely stable () and any risk they may be unable to work due to health issues are covered by the efficient well-developed US financial sector (through life and disability insurance), which is uniquely capable of risk pooling and risk transfer for US households, made possible by well-crafted legislation such as ERISA and the SEC Act. It is this rational complete lack of precautionary savings that is causal to the U.S. current account/trade deficit and nothing else.
American Economics Thread
- Thread starter Bernard
- Start date
@DavidLiptonWI Is that you?
Not sure what the California LAO is referencing since the annual re-referencing of surveyed employed data to actual unemployment filings (the Quarterly Census of Employment and Wages) broadly matches.
and federal payroll tax collections (which are only assessed on labor income) are up 6% year/year
and federal payroll tax collections (which are only assessed on labor income) are up 6% year/year
-They put tariffs on cheaper Chinese construction materials.
-They put buy America requirements were companies are legally required to buy more expensive materials.
- They are legally required to to work with sluggish unionize construction companies without the possibility of even establishing foreign local cooperation with more agile fab construction companies.
-They have to navigate a stringent maze of states and federal regulations.
-Ton of "woke" stuff that had nothing to do with the project.
Results: Massive cost increases, big delays and for some reason for everyone and their mother in D.C. is a surprise.
At least in the EV front things are running more smoothly
Nope, the lack of goverment investment in EV infrastructure is making the adoption of expensive EV cars like Tesla difficult compared to to China.
No problem I bet the US Government has 1 billion dollars to subsidize the US EV infrastructure to make sure that those 170 laid off Michigan workers get rehired real soon and make easy the EV adoption.
Yeah. Biden creating EV and semi jobs.... in the Philippines, because he has to stood up to Chyna.
-They put buy America requirements were companies are legally required to buy more expensive materials.
- They are legally required to to work with sluggish unionize construction companies without the possibility of even establishing foreign local cooperation with more agile fab construction companies.
-They have to navigate a stringent maze of states and federal regulations.
-Ton of "woke" stuff that had nothing to do with the project.
Results: Massive cost increases, big delays and for some reason for everyone and their mother in D.C. is a surprise.
At least in the EV front things are running more smoothly
Nope, the lack of goverment investment in EV infrastructure is making the adoption of expensive EV cars like Tesla difficult compared to to China.
No problem I bet the US Government has 1 billion dollars to subsidize the US EV infrastructure to make sure that those 170 laid off Michigan workers get rehired real soon and make easy the EV adoption.
Yeah. Biden creating EV and semi jobs.... in the Philippines, because he has to stood up to Chyna.
SMIC will achieved and deliver its 5nm earlier than TSMC Arizona FAB 4 and Intel, I can't wait to see Gina Raimondo face when Huawei Release its new phone equip with this chip, I hope this time she learned her lesson to collect and demand her advert fee.
Wishful thinking, if it's very difficult and costly to build and operate a FAB in the US, what more from the Philippine, as the electricity and water cost is the second highest after Japan in the Asia Pacific region and what more where will they get the technical personnel needed to operate those FAB as most of the educational institution here didn't offer any semiconductor subject in their curriculum. IT'S all optics design to assure the Marcos regime that his change of policy will be rewarded, I among the those sceptic will be proven right as we had heard and seen this before with negative result.
Intel started production of chips with Intel 4 process last year. They are selling these for laptops already.
Of course the thing is, Intel can do this thanks to having bought EUV machines from ASML. While SMIC is blocked from doing that.
Exactly. It is just smoke and mirrors by the US to convince the Phillipines to do whatever they want. The Phillipines has neither the staff nor the conditions to be a major chip manufacturing hub. In my opinion, the fabs will be moved to Japan. You can already see this with TSMC's new fab in Japan which they managed to build in just two years.
The Phillipines would need to train staff, change laws, provide benefits, and have proper water and power supplies to get into this game. Heck Malaysia has better conditions. At least they already have a fab there (Silterra). Even if it uses old processes.
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Correct bro, just as we can speak pretty English doesn't qualify us to challenge China in manufacturing, it is laughable. As with the Indians our colonial mentality know no bounds. We share the same fatalistic attitude, easy to manipulate our ego with instant gratification and blame other's if things doesn't go our way.
The Phillipines had a chance of being a major electronics hub in the 1980s-1990s. Unfortunately most investments there back then ended up being a failure. And most of the factories which moved there ended up leaving to other places in Asia. I don't see any changes in the current environment in the Phillipines which would significantly improve that situation.
The Arizona project will probably start production after China's EUV project initial production.