Friedberg: Deglobalization will raise labor, energy, and consumer prices over next decade
David Friedberg · E90: Twitter subpoenas, market overview, Pelosi's Taiwan visit & more · Aug 5, 2022 · at 34:11
David Friedberg (The Production Board CEO) discusses the long-term inflationary effects of trade fragmentation and supply chain repatriation.
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“A really important trend, Chamath, unlike That I think is playing out and will play out for the next decade on deglobalization. So as the US tries to build its own semiconductor manufacturing capacity, as China loses key trade partners, as all of these markets stop trading with each other and start to build redundancy, there is a massive longer range economic effect of deglobalization. Globalization enables efficient pricing. It enables labor and energy and everything to be done, you know, to go to the cheapest source. That's the way globalization has benefited us. We've been able to get cheap energy and cheap labor in overseas markets to do work for us. And as a result, we've gotten access to cheap products. So when you de-globalize, you end up having to pay more for labor, more for energy. You have to build infrastructure and the price for everything goes up.”
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