Is anyone talking about it - serious tariff war shots fired

Can I simply not find a thread on this? (wouldn't be the first time)

How idiotic can an outdated thought process get.

This morning I listened to a fantastic interview with Helen Clarke - former NZ PM - who eloquently explained that the reason for job losses in the USA is not because of international trade, but rather that the majority of low skilled jobs are being taken over by technology - and you can't tariff against technology.

So true - only have to look at our own mining industry, when entire mines are controlled by people behind desks monitoring keyboards and screens - even down to the GPS remote controlled dump trucks. Miners simply don't mine anymore.

So what is the outcome. China is a major importer of American cotton - so they are now looking elsewhere - Australian, India, Egypt etc.

Apparently the EU is the next target

Also pointed out by Ms Clarke - a tariff war was one of the main causes of the great depression becoming even greater. Interesting times and can't see any good coming from it.

 

Tariffs have been done before
I refer to the Corn Laws enacted in England.


Corn_Lawshttps://en.m.wikipedia.org/wiki/

 

Yes it's well known that automation is responsible for millions of job losses, but that can't be played well by the pollies, so they blame someone else to appeal to the fears/prejudices of some of the populace.

 

I read how Trump voters are most affected by tariffs so he is giving them compensation, instead of allowing adjustments in land prices, rents input and production costs. The compensation costs as much as revenue from the tariffs. Profits will be capitalized into land prices making , making the rich richer, by socializing there loss of revenue and increase of prices of goods. I guess if you don't like donating to the rich in the USA you could leave lol.

 

yet, unemployment rates are very low in most of the world. US in particular

Across the rich world, an extraordinary jobs boom is under way

 

Friend’s son is a FIFO miner in WA, lives in Brisbane.
The trucks are all driven by humans. Plus all the ancillary staff.
Over 100 workers each rotation.
Marg

 

Thought this was a good read and interesting stats on oz mining

https://www.google.com.au/amp/s/www.createdigital.org.au/mining-industry-automation-robots/amp/

 

US.... lowest employment figures since 1969

https://www.google.com.au/amp/s/beta.washingtonpost.com/business/2019/05/03/us-economy-added-jobs-april-unemployment-fell-percent-lowest-since/?outputType=amp

US economy going through massive expansion phase, just shows humans are not totally redundant yet

 

..... and there is tariff engineering

Tariff engineering - Wikipedia

 

"Under"employment is a major problem worldwide - as is the living wage in the USA. Was surprised that the minimum wage is tagged to be increased to a mere $15 over the next 5 years

 

What sort of mine? Apparently coal mines currently need the trucks to be drive by humans due to the "moving" of the coal deposits - although Adani are apparently bringing in GPS guided trucks - but other mines such as gold are mainly automated

 

He works at a gold mine in WA.
Previously worked at an iron ore mine in the Pilbara. Changed when offered better money and roster.
Marg

 

Not sure what you mean by under employment. Did you view my link on US employment figures

Yes minimum wage not great in US, but remember service industry....they get tipped, average 15%, this forms part of their wage

Dare you not tip.... you will know all about it

minimum wage in oz is around $18.80 per hour.

 

Under employment is when people want to work more hours - or are forced to work several jobs because the income is so low.

US minimum wage is $7.25 ... add 15% ... and it's $8.33 ... so even if you work 10 hours a day, you still only make around $83 (less tax) ... doesn't buy much in the way of accommodation or food or healthcare, especially for a family, for the many millions that are on this income.

Fortunately the minimum wage, in Australia, also increases as you get older - so over 20, with 2 years of waitress experience, one gets around $21/hr

 

Sorry but this logic is wrong. US tips are approx 15% of the service/meal (for wait staff example) not 15% of the employees wage.
So 15% of the meal’s value * no. of meals/customers per hour (or portion of if the tips are split) + $7.25 would be the minimum wage per hour for the point argued above.

Is this right/wrong or a better model than others is up for discussion.

 

A friend who worked as a waitress in the US while studying said that “Working for tips is like whoring yourself, no one wants to do it unless they have to”.

 

My daughter was working in a bar while at Uni in oz, she loved her tips, on a good day she sometimes earned more in tips than her pay.

 

When was the last time you looked for work ...