Chrkeller said:
Well there are two parts. One, we need to see how much MFG comes to the US. I do think many here are being a bit blind to the committed trillion dollar investments. I get the idea that companies can back away from their commitment, but that is a bit naive. Companies can't falsely make massive public announcements, that is a major security and exchange commission violations. The second piece is a bigger question. Paying more to have more jobs, is it worth it.  But hate blinds. And to be fair the hate is more than justified.  |
Unless I see the commitment in writing which states what exactly they're investing in, over what time period, and the consequences for breaking these commitments, I'm going to write it off as vague PR promises.
- Intel Prepares For $100 Billion Spending Spree Across Four US States | Reuters
- Intel Delays Opening $100bn Ohio Chip Plant Until 2030 - Global Construction Review
- Intel Confirms Mass Layoffs, Over 24,000 Jobs To Be Cut This Year | PCMag
They have two options.
1. Invest hundreds of billions in moving manufacturing over to America, hiring tens of thousands of employees in a time where corporations are laying off tens of thousands of American employees and moving to cheaper outsourcing, building manufacturing plants which are unlikely to be open during Trump's term in office and paying far more for cost of production. All to avoid Trump's tariffs which are temporary and have a likely expiry date of 4 years (decent chance the next President will lift them) but very likely have an expiry date of even shorter considering we've seen Trump TACO multiple times and not even the stock market reacts to his tariffs anymore.
2. Take a temporary hit and pass the costs onto consumers, wait for Trump to either lift the tariffs once he gets his "deals" or wait for the next President. Far cheaper in both the short-term and long-term for the companies. Trump himself doesn't even give manufacturing as the core reason for most of these tariffs anyway, and lifts them before his claimed issues are even resolved, it has mainly been about "trade deficit" nonsense with him, companies know the tariffs will be lifted long before manufacturing can be brought back to America, so why bother?
If they do Option 1 then the cost of production will increase long-term, maybe permanently? If they do Option 2 then cost of production increases only while the tariffs are active, which is likely ~4 years. Businesswise it makes more sense to just wait the tariffs out and then continue business as usual, that is using the cheaper countries to build Americans stuff which already has everything set up perfectly.







