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To: Gen.Blather
I'm kinda curious tho' and admittedly somewhat economically illiterate about these things. If mfg's just keep buying their product from the same sources then nothing changes but the costs of raw product and .gov collects the tarriff money. Correct?
Is the motivation s'posed to be for mfg's to seek other sources?

I'm sure it's all good, I'm just curious. Thanks. d:^)

10 posted on 07/07/2018 5:35:58 AM PDT by CopperTop (Outside the wire it's just us chickens. Dig?)
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To: CopperTop

“If mfg’s just keep buying their product from the same sources then nothing changes but the costs of raw product and .gov collects the tarriff money. “

Different products have different types of demand. And, the places they go for their demand are dictated by market forces. Let’s take inflexible demand. You break your arm. It doesn’t matter what the emergency room charges, you will pay it. (Or, at least incur that amount of debt.) There’s flexible demand, like chocolate. If the price goes above what you’re willing to pay, you substitute your demand for something else. But let’s say you need steel girders. Normally you buy these from China as they are dumping them on the US market in order to keep employment high. (The Chinese government is terrified about social unrest. One way to keep unrest from occurring is to keep everybody employed.) Suddenly, the price of the girders has jumped to where domestic products are competitive. The sudden jump in domestic demand allows the domestic producer to ramp up production, invest in infrastructure and lower his price compared to other domestic producers. The price, over time, drops due to competition. (Some would argue as this didn’t use to happen. Protecting a domestic market enables monopolies. However, Walmart has changed the way monopolies operate, so, the price will go down. Notice that the government has not attempted to use its trust-busting laws against Walmart as Walmart’s prices are demonstrably as low as they can be in any given market. Breaking up Walmart would translate into higher prices to the poorest consumers. Walmart has the poorest consumers in per capita income compared to its rivals.)

Here is a list of five types of demand.

http://www.economicsdiscussion.net/demand/5-types-of-demand-explained/3355


12 posted on 07/07/2018 5:50:48 AM PDT by Gen.Blather
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