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How Tariffs Actually Work

  

Category:  Sports

By:  bob-nelson  •  yesterday  •  21 comments

How Tariffs Actually Work



Trade wars are bad.


Red Box Rules

Whatever 


 

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Bob Nelson
Professor Guide
1  author  Bob Nelson    yesterday

'Course... MAGAs tell us not to believe anything he says....

 
 
 
Split Personality
Professor Guide
1.1  Split Personality  replied to  Bob Nelson @1    yesterday

But when Gavin Newsome says he "might" replace the federal EV rebates "if" Trump eliminates them and all EV models "might" not be eligible based on popularity, Elon Musk and Donald Trump lose their shit on their private social media sites as if Newsome already signed the nonexistent legislation.

The hypocrisy is priceless.

 
 
 
Bob Nelson
Professor Guide
1.1.1  author  Bob Nelson  replied to  Split Personality @1.1    yesterday

When one knows that their own word is worthless, it's logical to assume that others' word is equally worthless.

Makes communication difficult.

 
 
 
Buzz of the Orient
Professor Expert
1.2  Buzz of the Orient  replied to  Bob Nelson @1    yesterday

I'd really like to comment on this topic, so can you describe what the youtube you posted said?

 
 
 
Buzz of the Orient
Professor Expert
1.2.1  Buzz of the Orient  replied to  Buzz of the Orient @1.2    23 hours ago

Okay, I was sent the script and got about halfway through it when I nodded off, almost fell asleep reading the same old same old shit.   I'm beginning to get so bored about the tariff crap so never mind, I'll leave with an acronym - CUL8R.  Those who voted for him and/or support him are going to well deserve what it's going to cost them, and as for those who didn't, bear with it, and it's bound to be over 4 years down the road when voters wake up to realize how fucking stupid they were. 

 
 
 
TᵢG
Professor Principal
1.2.2  TᵢG  replied to  Buzz of the Orient @1.2.1    23 hours ago
Those who voted for him and/or support him are going to well deserve what it's going to cost them, and as for those who didn't, bear with it, and it's bound to be over 4 years down the road when voters wake up to realize how fucking stupid they were. 

I am concerned that this will be much easier said than done.   Remember that this arrogant, loose-cannon buffoon is still only president-elect.

And I have my doubts that Trump supporters will ever "realize how fucking stupid they were" because Trump gave them all sorts of opportunities to realize how unfit he is for office and they voted for the scoundrel nonetheless.

 
 
 
Split Personality
Professor Guide
2  Split Personality    yesterday

Raising tariffs raises prices. Raising prices are measured by rising inflation.

Maybe we're all missing the point that Trump was going lower costs and inflation???

 
 
 
Bob Nelson
Professor Guide
2.1  author  Bob Nelson  replied to  Split Personality @2    yesterday

Hey! That's Econ102. Beyond MAGA.

 
 
 
GregTx
Professor Guide
2.2  GregTx  replied to  Split Personality @2    yesterday
Maybe we're all missing the point that Trump was going lower costs and inflation???

What's the date?

Raising prices are measured by rising inflation.

Technicality, that's incorrect.

 
 
 
Kavika
Professor Principal
2.2.1  Kavika   replied to  GregTx @2.2    yesterday
WASHINGTON (AP) — With characteristic bravado, Donald Trump has vowed that if voters return him to the White House, “inflation will vanish completely.”

Prices will come down and come down dramatically and come down fast,” he said.

Trump vowed to slash not just the price of gasoline, cooling bills and electricity, but predicted this would happen across the economy.  CNN August 24, 2024

 
 
 
TᵢG
Professor Principal
2.2.2  TᵢG  replied to  GregTx @2.2    yesterday
Technicality, that's incorrect.

The inflation rate is based on aggregate price increases across multiple sectors in the economy.   Thus it is indeed rising prices (in aggregate, sustained, over a large domain) that are reflected by the inflation rate.

Now let's hear your 'technicality' explanation.

 
 
 
Split Personality
Professor Guide
2.2.3  Split Personality  replied to  GregTx @2.2    23 hours ago
What's the date?

11/27/2024

Technicality, that's incorrect.

Ok Mr Bush, whatever that means...

 
 
 
GregTx
Professor Guide
2.2.4  GregTx  replied to  TᵢG @2.2.2    23 hours ago

So supply and demand are irrelevant? Isn't that the reason?.. supply dropped while demand remained, cause Covid?..

 
 
 
TᵢG
Professor Principal
2.2.5  TᵢG  replied to  GregTx @2.2.4    23 hours ago

Non sequitur gibberish.    

 
 
 
GregTx
Professor Guide
2.2.6  GregTx  replied to  TᵢG @2.2.5    23 hours ago

Sure...

 
 
 
Kavika
Professor Principal
3  Kavika     yesterday

Wait, what!!! Tariffs are the cure all for all of the US ills, cuz Trump said so. 

Never forget his first term when he slapped China with tariffs and they responded by not buying US ag products, mostly soy and we, the tax payer had to bail out the farmers to the tune of $23 billion dollars. Yea, that’s the way to stick it to China.

 
 
 
Sparty On
Professor Principal
4  Sparty On    22 hours ago

Trade is not always fair.

- Sparty On

 
 
 
TᵢG
Professor Principal
4.1  TᵢG  replied to  Sparty On @4    20 hours ago

Correct.   Maintaining a trade balance with a nation does not mean that our trade policies are great.    Sometimes it makes sense for us to import much more than we export to a particular country to satisfy consumer demand at better prices.  There is nothing wrong with that.   If we did not want to buy their goods at their prices, we would not import as much.   Basic economics.

If we believe that a trade imbalance is related to a weakness in our system then we should fix that weakness.   The trade imbalance (if it was bad) will be fixed over time by the market.  So if a trade imbalance indicates that we are over-reliant on a particular nation, we should work to secure more suppliers and especially cultivate more domestic suppliers (if possible).    Or if we have a struggling industry we should work on improving that industry.

What is generally not good is an overall trade deficit.   A nation naturally would prefer to export more than it imports in aggregate.   But, as noted, because the USA is such a powerful consumer base, we tolerate a deficit ... we import more than we export in aggregate.

Trump seems to view trade with childlike thinking.   He seems to not go further in his thinking than deficit=bad, surplus=good.   We have a serious problem on our hands.

 
 
 
Bob Nelson
Professor Guide
4.1.1  author  Bob Nelson  replied to  TᵢG @4.1    11 hours ago

Good post.

World trade is not a zero-sum game. America doesn't lose because Canada wins. Both can and do win.

 
 
 
Greg Jones
Professor Participates
5  Greg Jones    3 hours ago

Tariffs are bad if companies pass on their added costs of doing business to their customers on down the line. Which is usually what happens.

But the same thing happens if they forced into pay higher taxes and fees. 

 
 
 
TᵢG
Professor Principal
5.1  TᵢG  replied to  Greg Jones @5    2 hours ago
Tariffs are bad if companies pass on their added costs of doing business to their customers on down the line. Which is usually what happens.

If?   A very small tariff is something an importer could eat.   Generally, however, importers pass the costs along because the excuse is obvious - the federal government just taxed your goods.    In other words, a new tax line-item appears on your receipt entitled 'tariff tax'.

But the same thing happens if they forced into pay higher taxes and fees. 

Indeed!   The very same.

So, do you agree that imposing tariffs increases consumer prices?

Now, do you recognize that Trump's threat of a 25% across-the-board tariff on Mexico and Canada would not only trigger trade wars with long-term negative consequences for the USA but would seriously raise the cost of living in the USA?    And then add the 10% additional across-the-board tariff on China.

How, exactly, would this be good for the USA?

 
 

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