Thursday, February 2, 2017

A Paragraph to Ponder

From Bloomberg BusinessWeek:

"The one thing certain is Trump’s volatility. Businesses are employing a range of coping strategies. One is to do nothing. “Postponement is a rational strategy, in a sense,” says Martin Reeves, a senior partner at Boston Consulting Group. Another game plan is to play along in hopes of earning some of the incentives Trump is dangling in front of companies that locate plants in the U.S. It’s not clear, though, that insourcing is always the right idea: “The last thing the auto industry needs is more capacity,” Marina Whitman, a University of Michigan professor and former General Motors chief economist, said after Trump met with auto execs on Jan. 24. Doing stuff in the U.S. that could be done more cheaply abroad raises consumer prices. And there’s no glut of skilled autoworkers in a U.S. labor market whose unemployment rate (after eight years of Obama’s supposed hostility to business) is already down to 4.7 percent."

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