Chip Shortage

[DryHeat]

corporate taxes are higher in the US than any other country

Are you sure about that?

I'm no expert on taxes, but I looked up "effective corporate tax rate by country" and found a list for 2020 and 2021.

The United States was number 35 on that list, coming in after a mixed bag of countries with higher rates like France, Japan, Australia, Germany, Canada, and China.

Corporate Tax Statistics | Compare your country

I'm sure different researchers can come up with different numbers, but it seems like it would be hard to move up from #35 to #1.

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[Wasatch-Man]

Are you sure about that?

I'm no expert on taxes, but I looked up "effective corporate tax rate by country" and found a list for 2020 and 2021.

The United States was number 35 on that list, coming in after a mixed bag of countries with higher rates like France, Japan, Australia, Germany, Canada, and China.

Corporate Tax Statistics | Compare your country

I'm sure different researchers can come up with different numbers, but it seems like it would be hard to move up from #35 to #1.

In 2017, the US corporate tax rate was lowered from 35% to 21%.

 

[DryHeat]

In 2017, the US corporate tax rate was lowered from 35% to 21%.

Effective tax rates are what corporations care about, because that's what controls how much they actually pay. Looking at the statutory rates is like looking at the list price in one of those jewelry stores where everything -- literally everything -- is always "50% OFF."

You said "corporate taxes are higher in the US than any other country." That's just not true.

Maybe you meant to say "they were the highest in the world in 2017," but that's not true either.

 

[M.A.C.]

If someone mentions the term "living wage", it's a pretty good sign that it's time to end the conversation because they either don't understand the fundamentals of our economic system or think it's inherently "evil". Either way, a waste of time.

What is a living wage in the US?


The living wage in the United States is $16.54 per hour, or $68,808 per year, in 2019, before taxes for a family of four (two working adults, two children), compared to $16.14 in 2018. The minimum wage does not provide a living wage for most American families. May 17, 2020. https://living wage.mit.edu

I like wasting my time and educating myself as to what the term actually means. Like many things in life, it's best to understand the term before mentioning it. In addition, the term has been used by both parties that would rather argue over the definition than actually try to understand it.

The term and its use are not inherently good or evil it's the way that it is used that determines if it is being used for the good or the bad.

 

[mav_can]

Not all, just most. TI has a multi-billion dollar factory in Richardson, TX

NXP also holds a large share of automotive chip production and they have a big fab in Austin. Samsung as well. Micron also manufacturers a decent amount in the US, especially automotive.

 

[mav_can]

I'd rather use a flat fee real estate agent.

If they negotiate the price up $10,000, they only make $300 more, which they could easily make more selling another house. They're incentivized to flip as many houses as possible.

Yes this is exactly right. I see you might be a fan of Freaknomics.

 

[PapaDave]

If the chip shortage meant no more of those 'snack size' bags, I wouldn't be to upset. On the other hand, I am lucky if I can stop at half a bag of Dorito's.

PS: Frito corn chips with the spicy bean dip is nice too.

Sorry Administrator, not sponsoring or promoting Doritos or Fritos in any way.

 

[sseiler]

Looks like Ford is shutting down one of the F-150 plants for a week.

https://www.cnbc.com/2021/08/18/for...-truck-plant-for-week-over-chip-shortage.html

Separately, I read that Toyota was cutting production by 40%.

I think we are actually headed for a car shortage. Bizarre. Anyone remember the days when there was a glut of cars on dealer lots?

Oh, yeah, definitely remember those days.

The lots around here look like Walmart the day after Black Friday. All the isles are empty except for the nobody wanted.

… and it isn’t going to get any better any time soon.

 

[Mav]

I saw an article (local news) that claimed covid is causing shut downs in the Asian countries that are producing chips. Hope this first few batches of Mavericks is already in the works.

 

[bbhaag]

Not to add fuel to the fire but TSMC one of the worlds largest chipset manufacturers just announced price increases. TSMC is on par with Intel and Samsung as far a chip manufacturers go so to put into perspective they are a pretty big deal.

Anyway, I know a lot of you guys like sources so
https://www.wsj.com/articles/worlds...-threatening-costlier-electronics-11629978308

Taiwan Semiconductor Manufacturing Co. plans to increase the prices of its most advanced chips by roughly 10%, while less advanced chips used by customers like auto makers will cost about 20% more, these people said. The higher prices will generally take effect late this year or next year, the people said.

 

[DryHeat]

The previous admin also got the US out of horrible trade deals like NAFTA, and improved our trade and commerce with Canada and Mexico under the new USMCA

I think a lot of people are confused about the differences between NAFTA and USMCA. That's because... it's confusing. And politicians aren't interested in making it any clearer.

USMCA is a reworking or NAFTA. Most articles about the revamp point to only a few significant changes. The important ones don't look (to me) like they are going to change the auto industry radically, but maybe they will:

• The "country of origin" requirement for components was raised from 62.5% to 75%, but as before parts made in either Canada, the USA, or Mexico count.
• More parts, materials, and assembly have to be made/done by workers earning at least $16/hr. Right now it's about 23% but it will go up to 30% in the future. Sort of pushing the idea of a living wage into Mexico.

The other changes that are usually mentioned seem clustered around intellectual property, the dairy industry, and technical enforcement provisions.

On the whole, it seems good that NAFTA was updated to deal with issues that have surfaced since its inception. It was pretty old. The idea was proposed by Reagan in 1980 and the deal was signed by G.H.W. Bush in 1992 and ratified under Clinton in 1993. A lot has changed since then.

Although pretty much every president since then has proposed to change it, Trump actually got revisions enacted. But, to put it in automotive terms, it's not a new model, it's more of a mid-cycle refresh.

 

[stoptothink]

What is a living wage in the US?


The living wage in the United States is $16.54 per hour, or $68,808 per year, in 2019, before taxes for a family of four (two working adults, two children), compared to $16.14 in 2018. The minimum wage does not provide a living wage for most American families. May 17, 2020. https://living wage.mit.edu

I like wasting my time and educating myself as to what the term actually means. Like many things in life, it's best to understand the term before mentioning it. In addition, the term has been used by both parties that would rather argue over the definition than actually try to understand it.

The term and its use are not inherently good or evil it's the way that it is used that determines if it is being used for the good or the bad.

Just to be clear, a "living wage" is slightly more than the current median U.S. household income ($68,400 as of this year)? So more than half of households in this country (to be fair, the median household size is ~3.15 persons) are subsisting on less than a "living wage"; there's some logic.

The term "living wage", just like "poverty" (FWIW, my household income is ~5x the U.S. median yet expenses for our family of 4 are right at the 2021 "poverty" standard - and we have a darn good life) is totally meaningless without individual context. It's the BMI (I'm an exercise physiologist and obesity researcher) of economic metrics. Defining the term doesn't make it any more useful in the real world and I've never personally heard anybody on one side of this discussion use the term (but that's just my n=1).

 

[HokieKev]

Not to add fuel to the fire but TSMC one of the worlds largest chipset manufacturers just announced price increases. TSMC is on par with Intel and Samsung as far a chip manufacturers go so to put into perspective they are a pretty big deal.

Anyway, I know a lot of you guys like sources so
https://www.wsj.com/articles/worlds...-threatening-costlier-electronics-11629978308

Nobody likes to pay higher prices. But in a strange way I actually see this as a good thing. Products will become available, albeit at slightly higher prices. Hopefully, people won't have to wait months to get the car or truck that they want. Also, if TSMC raises their prices too high it will attract other entrants into the market to produce chips. Same article also notes that TSMC may also put a plant in the U.S. - also not a bad thing - considering the pandemic and political instability in the Asian region. Still, seems like the next year will be painful as the market adjusts.

 

[HokieKev]

Not Maverick related, but further shutdowns/slowdowns in the building of other Ford Trucks.

https://www.reuters.com/business/au...ruck-production-due-chip-shortage-2021-09-01/

I read somewhere, in another article, GM is having a really large number of plant shutdowns. My car has 160K on it. Hoping things would settle out soon but instead still looks like, in general, The car/truck shortage will get worse before it gets better.

 

[Platinum2]

I'm a retired Contract Negotiator and car salesmen don't intimidate me. There are a lot of others that get taken every hour of every day.

OK Boomer......

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