Saturday, May 13, 2023

Onshoring

The situation at the southern border allows innocent people to make a perilous journey and helping the drug cartels poison young Americans but there is a larger danger looming ahead. The current President Obrador is trying to become a dictator but he is term limited by law so he will be gone in two years but if his successor follows in his footsteps it could hinder the long term onshoring plans of the United States. The US plans to overtime bring home manufacturing to the west and much of that will be built in Mexico. If the cartels gain too much power they could interfere with the new manufacturing plans. One way for the president to gain more power is to join forces with the cartels and the US would be forced to take military action to control the cartels. This would have a detrimental effect on the US plans to onshore. If the US can succeed in onshoring it will mean high inflation for several years but in the end it will guarantee secure supply chains and increased productivity that will time reduce inflation. While much of the new manufacturing will be in Mexico an equal amount will be in the US and this will raise wagers for factory workers much like what happened in the 1950's. This could become the greatest growth period in US history.

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