It’s Econ 101. These tariffs will hurt the consumers.
It’s Econ 101. These tariffs will hurt the consumers.
I believe it was John Q Adams that said something about people needing to not sacrifice their lives, but sacrifice their comfort if we were to win the revolution.
If people want this nation to return to greatness, they may need to sacrifice their comfort. We’ll see what this country is made of soon enough.
It’s Econ 101. These tariffs will hurt the consumers.
Empowering the Chicoms with our dollars hurts all Americans. It’s Common Sense 101.
I will give you an example of how tariffs work.
A US and German company decide to build X-bike. Everything is the same between the two bikes....technology, brakes, tires, etc.
So the US company sits down and figures up the raw material, labor cost, and company profit line (with taxes figured into this estimate). They come to a wholesale price that the middle guy will reach and pay. Let’s call this ‘Y’.
The German company does the same thing, figuring up the raw material, the labor cost, and company profit line (with taxes figured into this estimate). But we reach this interesting problem. You go and figure healthcare costs, personal taxes, VAT, cost of living, etc....and this German wholesale price is ‘Y’ + 15-to-20 percent. Because of gas taxes, property taxes, sales taxes, pension cost, etc....the German has a bigger umbrella to cover.
So these two bikes are delivered to a German store, and the US-made bike (without a tariff) would be probably 15-to-20 percent more....minus out the transport cost on the US bike to be delivered there.
Can these two bikes compete? No. Is it unfair competition? The German would say so.
So the answer, because the German can never compete on a fair and level field because of his cost of living and various taxes....is a tariff. You inflate the American’s bike cost to equal the German’s cost, and probably exceed it by 5-percent.
Imagine this across literally thousands of products and the nature of German tariffs...literally to cover up the fact that they can’t compete without the tariff existing.
So do other countries' tariffs hurt their consumers?
Somewhat. Not all of it will be passed onto consumers (otherwise China wouldn’t care). The additional income coming back to the US will be good for consumers as well and the tax money can go to reduce our debt or lower direct US taxes (income, corp tax, etc).
Politics and economics mesh, they are really the same thing. Whether pointy headed green eye shade arm banded ledger types like it or not, that is reality.
The 30 year globalist experiment in "Free Trade" is an abject failure. Why? because the rest of the of world did't play along and used us like cheap whores.
Economics is an offshoot of Astrology. It’s an exercise in taking strands of catchy observations and weaving mind manure.
It is not science, it never was and never will be.
Econ 101 is an introductory course leading to more advanced courses such as ‘How To Lie With Statistics’.
Now here are truthful facts:
1. The President said that tariffs will inflict ‘temporary’ pain.
2. The PRC Chinese ‘party members’ will also feel this pain (the proletariat are in constant generational pain not knowing anything else but pain).
3. The tariffs will make other goods and services more price competitive to those of the PRC Chinese.
4. The PRC Chinese will face loss of market share.
5. President Trump has prepared countermeasures to the recurring and anticipated currency manipulation by the PRC Chinese in response to tariffs.
In fact, The Trump Administration’s tariff rollout is a counter to China’s historical currency manipulation.
Never make an investment based on Econ 101, or Econ 201, or Econ 501, or Econ anything.
Millions of people have had their investments wiped out by investing in Econ nonsense such as ‘prices will rise as shortages grow’. They get wiped out because the real principle is ‘prices will rise temporarily in accordance with temporary shortages while markets backfill supply and stabilize’. In other words, they get wiped out because they can’t time the market.
Timing is everything.