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Fiesta28 [93]
3 years ago
13

What would happen to the U.S. economy if all or most manufactures here made 80-85% of their own parts like SpaceX and Tesla?

Business
1 answer:
bazaltina [42]3 years ago
5 0

Answer:

The U.S economy won't fall, but it will have some problems.

Explanation:

Now,

If all  manufactures start making their own parts, the U.S Government wont have any customers to buy the resources needed to make a part. These Manufacturers will have to make mines and factories of their own to do this. It is unlikely that manufacturers will make factories or mines to make their own parts because it is going to be a huge project and its going to cost a lot of money which will be a lose-lose situation because both the U.S and the manufacturers are not going to benefit.

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Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

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