Yup. Subsidies encourage them to stay uncompetitive. If they were competitive they wouldn't need subsidies.
I think what he really meant was cutting off welfare to the poor while subsidizing the rich like Musk. A typical Republican response.
No. I meant using basic economic knowledge. Understanding what dead weight costs are, comparative advantage, and where inflation comes from.
When you're raising the tariff on Chinese goods, it ain't the Chinese firms that bear the brunt, it's the US importers. So ideally you should be giving MORE subsidies to these US firms to offset their losses. Otherwise, they will only screw their customers by hiking up the damn price. And what will that only achieve? Probably less sale that would eventually lead to massive layoffs, and that can't be good (unless you love recession). But then we have Elon Musk as Trump's economic advisor. And he's turning out more like Trump than the other way around. God I hope we don't go down the same route as Putin's Oligarchy in this country.
So you expect government to know that, and do the right thing huh? I, for the most part, don't when it comes to trade. Note: it helps for clarity to quote the previous post to keep the chain of communication ... clear.
Some points from Trump's agenda: 1. Cut down on immigration. 2. Tariff on foreign goods 3. Expand domestic industry (Emphasis on crypto industry) Are they not conflicting with one another? Just asking. I am neither pro-Trump nor anti-Trump. I just don't care. I learnt to go long when markets go up, or, to go short when they go down without any personal attachment. Actually, I am hoping Trump will give me more trading opportunities with his tantrums on social media.