William Thien

The stock market and “Made in China”

Posted on: August 25, 2019

If the stock market is having serious problems with Trump’s tariffs on Chinese made imports, that tells you something.

What does it tell you? It tells you that publicly traded US companies that rely solely for their profit margins on products made in China may be good for the investor but may not be so good for the country and the American worker.

I am one of those people who believe the internet bubble was brought on by big American tech, something they don’t want you to know. When the internet was becoming a massively driving economic force here in The US, what did the biggest tech companies do? They offshored to India for tech and customer support and to China for manufacturing to increase their profit margins. You remember having to call for tech support and somebody from India answering the phone? And you asked them, “where are you?” And they replied, “I am in India, sir.” You remember that?

All of those jobs immediately left the country in less than a year’s time and suddenly the internet bubble burst. Big tech caused it. Just like that! Pop! Big tech brought on the internet bubble through greed even though greed might be a good thing as many economists believe. In this case, though, they screwed the world’s largest market, The US. Duh!

The same thing is happening with the rest of the economy, now.

If the stock market is plummeting because of Trump’s tariffs on Chinese imports, that tells you something, doesn’t it?

Should producers have the right to offshore? Probably. Is it the best plan in the long run? What do you think? Look at them now. They are right at the edge all bunched up next to each other trying not to be the first to go over the edge while the ground is giving way, giving way because of greed. Greed indeed might be a good thing as many economists believe. But misplaced, the consequences can be severe. Putting all your eggs in a Chinese made Easter basket (check that label, that basket was probably made in China. See, I told you so) doesn’t seem to have been the best bet, does it now?

Check the label.

Copyright © William Thien 2019

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