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What if tariffs?

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Re: What if tariffs?

#92
post #68

Earlier quoted context omitted.

> However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Nobody can predict this. Tariffs are used by trump mostly as a negotiation and distraction tactic. In that sense they've been extremely effective.

[flagged]

salah posting?

Re: What if tariffs?

#93
post #90

Earlier quoted context omitted.

it's thanks to the lying that he was elected in the first place, and no one around him dares to contradict him, what would be the incentives to stop?

[flagged]

Why are you attacking a point he didn't make?

Trump lies. Almost every sentence is a lie.

If you're allowed to lie during your campaign and you're immune from the repercussions, of course you're going to sway voters.

Don't close your eyes to obvious truths.

Re: What if tariffs?

#95
post #48

Earlier quoted context omitted.

The exporter gets paid the same as before. The buyer pays more. There's a subtle difference, can you spot it?

Let's imagine, hypothetically speaking, that demand is perfectly inelastic. The price of a good is $10, and buyers will absolutely refuse to pay more than $10 under any circumstances. Before a tariff is imposed, the seller sells the good for $10 and keeps $10 in revenue. If a tariff of $1 is imposed under these hypothetical circumstances, does the buyer pay more? Does the exporter get paid the same as before? Clearly…

Yeah we can literally see it happening in real time. If you have a product with competitors in the market and you are a foreign entity you will eat some of the cost to try to stay competitive in the market. Your only other option is to leave the market. A good example of this is Brasil who tariffs a ton of stuff.

Re: What if tariffs?

#96
post #21

This would be more impactful if we could see the cost to US purchasers was actually 39% more. Sadly some manufacturers spread the cost across all consumers, which actually means non-US customers are actually paying some of the tariff costs too.

Would you trust statistics coming from this administration?

Re: What if tariffs?

#97

Earlier quoted context omitted.

This isn’t actually how it works though. Who pays the tariff is the same as who pays a tax: it depends on the price elasticity of supply and demand. If the demand curve is very price sensitive - like people might stop buying wool blankets if the price went up 50%, and buy cotton blankets instead - then the tariff will be paid by the suppliers, because they must lower their prices to make the final price the same. And…

As with many things in economics the effect of a measure often depends on the timeframe one considers. Honestly, anything could be true if one just chooses the appropriate timeframe. However, the tariffs clearly introduce an inefficiency which - globally speaking - will be net negative. Locally speaking, though, who knows …

Tariffs existed before Trump, and existed by other countries against the US.

Did those not introduce inefficiency? Actually, it probably produced more inefficiency because most people were probably under thr impression most of the world was under free trade, hence the existence of the WTC.

Not knowing a tax is much more inefficient than knowing a tax.

Re: What if tariffs?

#98
post #48

Earlier quoted context omitted.

The exporter gets paid the same as before. The buyer pays more. There's a subtle difference, can you spot it?

I don't see it. Exporter pays: Consumer ends up paying price + tariff, then seller pays the tariff to the shipping company, which pays it to the government. Importer pays: Consumer pays price, then later pays the tariff to the shipping company, which pays it to the government. In both cases the consumer is paying price + tariff. A small difference is that some consumers could be psychologically tricked by the lower p…

> Note that what I'm saying doesn't concern itself with changes in pricing due to this.

That's the problem with your semantics then. If the manufacturer no longer makes the same income because they can't increase the final price, in effect the consumer didn't pay the tariff.

Re: What if tariffs?

#99
It’s actually quite shocking to leave the U.S. and experience the drastic fall in respect.

The U.S. has over a century’s worth of dominance and control built in, so it’s not gonna unravel anytime soon and countries will need to grovel along for a bit.

But the decoupling has begun, is almost certainly irreversible and is gonna hit Americans hard at most a decade from now.

We have no idea the the chain of motion that has already been set in. Trillions of dollars worth of goodwill and respect has been lost in months.

Re: What if tariffs?

#100
post #90

Earlier quoted context omitted.

it's thanks to the lying that he was elected in the first place, and no one around him dares to contradict him, what would be the incentives to stop?

[flagged]

The election was stolen, From Al Gore.

Hell, I'm sure people have been claiming rigged elections since the Ancient Greek republics

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