there are so many second order effects here who knows. for example (and im not saying this will always be the case) if a tariff pushes a foreign company's good out of the us marketplace and the customer is "forced" to pay 2x for something domestically manufactured that lasts 4x as long, did the american "pay for it"? how would this look in bulk economic data (spoiler it would look bad because consumption went down)
there are so many second order effects here who knows. for example (and im not saying this will always be the case) if a tariff pushes a foreign company's good out of the us marketplace and the customer is "forced" to pay 2x for something domestically manufactured that lasts 4x as long, did the american "pay for it"? how would this look in bulk economic data (spoiler it would look bad because consumption went down)
Where did the raw materials for this 'american' product come from?
Crazy that one of the major policy initiatives of the all Republican/Maga government is to impose a huge consumer tax increase. Maybe calling these "import taxes" instead of "tarrifs" would help emphasize that to the average voter?
That’s the point. It’s not crazy. Tariffs are regressive taxes. Rich people buy more stuff, sure, but as a percentage of their income they net out as beneficiaries of shifting taxes from income to spending. It’s totally rational if you want to increase taxes on the bottom 80% to subsidize the top 20% (and especially top 5%).
That this is surprising to a large group of Americans speaks to how uneducated a lot of them are. Not sure if it has something to do with the underfunded school system?
Red states are red states for a reason. Lowest income, lowest educational attainment, rural poverty and struggling schools. It’s a pernicious problem exacerbated by conservative media that’s 24 hour xenophobia and jingoism. It’s not just the US look to your countrymen dear reader!
Not to mention a large portion of that cohort views education as a moral wrong.
That this is surprising to a large group of Americans speaks to how uneducated a lot of them are. Not sure if it has something to do with the underfunded school system?
Red states are red states for a reason. Lowest income, lowest educational attainment, rural poverty and struggling schools. It’s a pernicious problem exacerbated by conservative media that’s 24 hour xenophobia and jingoism. It’s not just the US look to your countrymen dear reader!
It's very frustrating to city dwellers that so much of the "discourse" on the right is how immigrants are destroying cities, mass transit is a death trap, etc. And it's aimed squarely at rural voters.
there are so many second order effects here who knows. for example (and im not saying this will always be the case) if a tariff pushes a foreign company's good out of the us marketplace and the customer is "forced" to pay 2x for something domestically manufactured that lasts 4x as long, did the american "pay for it"? how would this look in bulk economic data (spoiler it would look bad because consumption went down)
Where did the raw materials for this 'american' product come from?
there are so many second order effects here who knows. for example (and im not saying this will always be the case) if a tariff pushes a foreign company's good out of the us marketplace and the customer is "forced" to pay 2x for something domestically manufactured that lasts 4x as long, did the american "pay for it"? how would this look in bulk economic data (spoiler it would look bad because consumption went down)
In this case, the economic data would indicate rising inflation. The quality of the goods purchased is mostly irrelevant, but it's quite an assumption to assume the good will last longer.
Everyone focusing on consumer prices. But tariffs also function to incentivize domestic reindustrialization, which has huge national security implications. You see this clearly in the venture space as increased investment interest in hardtech and manufacturing. It's great that the federal government is looking long term again.
Tariff rates have changed how many times in the past six months? Businesses need certainty if they are going to make long term investments.
Crazy that one of the major policy initiatives of the all Republican/Maga government is to impose a huge consumer tax increase. Maybe calling these "import taxes" instead of "tarrifs" would help emphasize that to the average voter?
That’s the point. It’s not crazy. Tariffs are regressive taxes. Rich people buy more stuff, sure, but as a percentage of their income they net out as beneficiaries of shifting taxes from income to spending. It’s totally rational if you want to increase taxes on the bottom 80% to subsidize the top 20% (and especially top 5%).
To be fair, the portion of the tariffs passed on to the consumer is a regressive tax. The portion of the tariff that is covered by the American companies is more complicated and probably goes mostly against the wealthy. (Then, of course, there’s the portion of the tariffs, covered by the foreign companies, which is article is saying it’s not a large portion.) There is hope the consumer is not completely screwed. We will have to see how it turns out. (I am not a fan of tariffs or the administration, but I am ok with people who are.)