Wednesday, March 18, 2020

Higher prices

One outcome of the current virus situation is the understanding that the US cannot rely on other countries as its sole source of medicinal supplies. Another example to illustrate the point is the mining of rare earth metals. These represent the raw materials needed by our modern high tech society. These ores are available in the US but in order to mine them and meet the EPA rules the companies cannot compete with China where rules are ignored or nonexistent. Any company that tries to mine these elements here will face a China that will lower prices to run them out of business. While some EPA regs can be reviewed and eased the best solution is to mine these ores here and pay a higher price. US companies who use these products will have to pay more and consumers must be willing to pay higher prices for electronics.

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