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US businesses and consumers pay 90% of tariff costs, New York Fed says

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Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#21
post #19

Everyone has been getting sold that these tariffs are on "China" or fill-in-the-blank on what country we're "getting" with them. The reality is that's a fundamental misunderstanding of what a tariff is. There is a reason you will find tariffs drop off after the great depression. They make everything more expensive for businesses and in turn, the end consumer. https://en.wikipedia.org/wiki/History_of_tariffs_in_the_Un…

It could work if you put the couch in your neighbor's yard first.

True but you still lose your couch! >:(

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#24

Everyone has been getting sold that these tariffs are on "China" or fill-in-the-blank on what country we're "getting" with them. The reality is that's a fundamental misunderstanding of what a tariff is. There is a reason you will find tariffs drop off after the great depression. They make everything more expensive for businesses and in turn, the end consumer. https://en.wikipedia.org/wiki/History_of_tariffs_in_the_Un…

I can’t help wondering if the biggest problem in the US right now is that a majority of people having a “fundamental misunderstanding” about many, many very important things.

Maybe it’s because of propaganda, mis information, social media, education or because they’re too busy and tired trying to make ends meet so they don’t have time to research issues for themselves.

It feels like it will be very difficult to course correct when so much money and power wants it this way.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#25

Those are exactly the groups that are meant to pay for the tariffs. A factor in this that is not mentioned is that companies selling goods to the US may have made an effort to lower prices, altering production to lessen tariffs or in other way tried to offset the extra amount US consumers have to pay. An estimate of that would be quite interesting.

Prices go down when overall demand is lower, but it also goes down for the rest of the world.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#27

The US has needed to raise taxes for decades given the level of spending the federal government does and constant "relief" packages that everyone now expects the minute there's a downturn. The runaway deficit is a massive problem now given the age of 0 interest rates is over. So what's astonishing is, whether you like him or not, the Orange man actually got the American public to accept what is defacto the largest ta…

> What's astonishing is, whether you like him or not, the Orange man actually got the American public to accept what is defacto the largest tax increase in decades.

What does it mean "got the public to accept it?" The public had no say and these are probably illegal. On top of that, he probably literally does not know that these are effectively taxes on consumers (i.e. he believe his own bullshit).

No credit is due here whatsoever.

Re: US businesses and consumers pay 90% of tariff costs, New York Fed says

#30

Congratulations Trump fans --- you voted for a big new tax --- on yourself. Stupid is as stupid does.

The different between taxes (you -must- pay (unless X loopholes applies to you)) whereas tariffs are voluntary and even more so then sales tax.

You may chose not to buy any products or goods that requires you to pay tariffs.

Which is the primarily goal to begin with. Influence consumer behaviour.

I realize that for some products and goods there may not be a an alternative choice of products or goods that do have tariffs.

In theory, over time, these will be increasingly replaced by products and services that have the competitive advantage of not having to tariffs applied to them.

Once tariffs are in place for a year or two it is possible that, domestic producers have expand capacity, have created jobs have caused supply chains shift and new production is based on the tariff based price structure

This however takes time. And to what extent it happens is not easy to predict.

Some may think that the next president will remove all tariffs the moment he or she takes office, so it is a short term problem. The problem with removing them all, is if the above has happened, and removing them will destroy American jobs.

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