It's not actually a strategy at all. It's the organic result of being the global reserve currency. Foreigners want American dollars so that they can trade with everyone else and are incentivized to do whatever it takes to get it.
Also, the "massive trade imbalance" is only an imbalance in goods. When you take services & the flow of foreign investments/loans into consideration as well, things don't look anywhere near as uneven as Donald Trump would like you to believe.
Trump wants us to give up high value jobs in designing hardware and software so we can make less working in factories again.
It's not even just jobs, it's also the tax revenue itself.. the population is overburdened with taxes and increased prices combined with relatively lower wages due to excessive inflation the past few years. While tariffs can increase prices, they can also eat into the margins of foreign production leading to more insourcing of jobs.
Beyond those aspects is being able to handle production of critical infrastructure in times of supply constraints... such as war or a global pandemic. You can increase from 50% production of medications to 100% of domestic needs pretty easily, but scaling from 0% is almost impossible in any reasonable time frame.
It’s a thing you’d prefer to avoid, sure; but some degree of prognostic uncertainty is totally routine (in fact I would call that definitional: no predictions are truly certain until they’ve come to pass, and by the time that happens it’s usually too late to act). It’s not “bad” any more than mortality is “bad”—it just is, whether or not we wish it were; wisdom lies in managing it as best you can.
In the sense that the gp used the word, I think they allude to a tradeoff: you can reduce the probability of an underestimate by increasing the probability of an overestimate. I took their comment to imply that it would be wiser to risk an overestimate than to risk an underestimate on questions of “can Chinese society achieve a massive goal on a tight timeframe if their leadership decides it’s important.”
Much better than sarcasm then =)
