Tariffs, how they actually work

[The Sage of Main Street]

How is that good for the economy? Prosperity depends on money moving, not setting up barriers.

Barriers plug up the giant sucking sound

 

[The Sage of Main Street]

Tariffs CAN be a fair and effective trade policy if they are USED carefully, the best use is to adjust for artificial comparative advantage like for example imbalanced labor costs. If you have a nation where labor is dirt cheap (because of a low standard of living) competing with domestic producers in a nation where the standard of living mandates higher labor costs it is incumbent on the national government to adjust for that unfair advantage and protect it's domestic labor force.

However if they are deployed to protect domestic producers that are inefficient and wasteful of resources, they are a sure fire way to damage your domestic economy.

Examples; in the 1980's Japanese Automakers were kicking U.S. Automakers asses because they were producing higher quality, better designed and engineered and more fuel efficient cars and the big three were producing garbage, this is NOT a situation where tariffs are called for, the big three had to get their act together to compete or die.

Today many Chinese producers are succeeding against U.S. domestic producers because Chinese labor costs are intentionally kept low which is a situation where tariffs makes sense.

Pompous Preppy Parasites

The auto giants in America had hereditary management. The fact that we are never allowed to blame that is proof of Totalitarianism.

Japan was the opposite. Unlike our spoiled brats, the Japanese HeirHeads were wiped out in World War II because they felt it was their duty (noblesse oblige) to volunteer for the front lines. After 45 years, the heirs of self-made Japanese took over, causing their country's present decline.

 

[The Sage of Main Street]

Chinese labor costs are low because of Uyghurs whose human rights are being abused by China. Uyghurs are subject to forced labor in China. Thus, the cost of production in China is way lower. BTW, Japan has high tariffs and draconian EV requirements on American vehicles which is why you don't see them in that country.

Neo-Con China Hatred Leads to Contradictions

Uyghurs are Nazislamis. Pity for them is treason.

 

[Leo123]

Tariffs fundamentally contradict the principle of free trade, a core foundation of the capitalist system. Tariffs are a form of protectionism by government intervention in the free market to restrict imports, which shields certain domestic industries from foreign competition and damages others by raising the prices of raw material. No government that claims to support deregulation can support global tariffs.

Your mistake is thinking it is one world with regard to economics. Canada, for example, will never accept U.S. dairy products equally.

 

[The Sage of Main Street]

Capitalism?

Totalitarian Transnationalist Treason

That includes the "God-given" right for American business owners to get the cheapest labor possible by outsourcing our jobs to sweatshop basket cases. These parasites are no better than the Russian kleptocrats.

 

[The Sage of Main Street]

That's a factor but the largest factor is that the bulk of the Chinese population's standard of living is kept relatively low in comparison with that of the U.S. by the CCP, principally because the CCP is actively trying to keep it's domestic economy EXPORT DRIVEN instead of CONSUMPTION DRIVEN. The reasoning behind this is obvious; when standards of living rise the population has less tolerance for political and social oppression by the state. The last thing the CCP wants is the average Chinese citizen enjoying the same standard of living as the average American.

Same Strategy and Outcome as in Japan

It may be the last thing the Chinese hereditary ruling class wants, but they do want it eventually.

 

[The Sage of Main Street]

Nope. Forced workers that China uses to export cheap, slave-made products to America.

Enabled by America's decadent and terminal Capitalism

 

[Hafar1014]

Foreign countries dont make any money. American companies source stuff for the lowest cost they can and pass that savings into the market.

• Ralph Laruen makes a polo in China for $16. The factory profits $2.
• Its shipped to the US for $2 and the freight company profits 50 cents
• The shirt has a tariff for $2 and the US profits $2.
• Ralph Lauren sells the shirt to Macy's for $40 and profits $20
• Macy's sells the $99 ticketed shirt to Me for $80 on sale and profits $40

So to recap:

• The Chinese factory made $2
• The international freight company make 50 cents
• Ralph Lauren made $20
• Macy's made $40

So what exactly is the problem here?????????????????????????

Only if you buy it. Dont buy it and wait for ity to show up at TJ Max for $20.00

 

[The Sage of Main Street]

Democrats have no ideas, no leadership, and no honesty whatsoever. No REAL American should support them. These are not your Daddy's Democrats. Not even close.

The RichKid Reich's Right Fist Does Know What Its Left Fist Is Doing

That lets GOPers get away with being a little better than the worst possible. Nice set-up.

 

[citygator]

Only if you buy it. Dont buy it and wait for ity to show up at TJ Max for $20.00

Youre not going to find Ralph Lauren Polo stuff in TJ Maxx. You're funny.

 

[Hafar1014]

Youre not going to find Ralph Lauren Polo stuff in TJ Maxx. You're funny.

I have lots of designer crap ends up in discount stores

 

[The Sage of Main Street]

Ah contraire, the Democrats have plenty of ideas and leadership.

Unfortunately for the Democrats all of them are idiotic and unpopular.

Singer's Slingers

The Diddlycrats are devoted and energetic seamstresses, but they rip what they sew.

 

[citygator]

I have lots of designer crap ends up in discount stores

What did I post? I posted you are not going to find Ralph Lauren Polo brand in T J Maxx. Real designer brands arent there. They'll get some CHAPS or "Lauren" by Ralph Lauren, but not the designer Polo brand. That's about all I buy, Polo brand. Most brands make some sub lable for those guys for people who cant tell the difference in quality and style. No offense.

 

[Hafar1014]

What did I post? I posted you are not going to find Ralph Lauren Polo brand in T J Maxx. Real designer brands arent there. They'll get some CHAPS or "Lauren" by Ralph Lauren, but not the designer Polo brand. That's about all I buy, Polo brand. Most brands make some sub lable for those guys for people who cant tell the difference in quality and style. No offense.

Dont buy prices drop thats the point

 

[The Sage of Main Street]

an oversimplification for sure, but why is it not better for America if the expansion money is spent here in America? and yes, we should work all the angles to make sure we benefit more than the rest of the world. In case you don't understand, the rest of the world does not give a shit if the USA is financially sound, they are only interested in their own financial success, as should we be.

Decidercide

For America to have a future, we have to also eliminate the bluebloods and brown-noses in our ruling class.

 

[kyzr]

Indiana
Ww

Very nice. But car prices go up every year, so I'm not sure how much was tariff and how much other costs, material, labor, etc.

 

[The Sage of Main Street]

I bought a new car last year as our retirement car.

I check recently and the price jump for the same model is $5000 higher.

WW

The auto companies are taking advantage of the Glowbully propaganda they paid for

 

[The Sage of Main Street]

Nike would be nothing without overseas child and slave labor.

Confiscate All the Profits That Have Been Made by Outsourcing Traitors

 

[pknopp]

No one is forced in China.

We built a plant in China. Employees would just dissappear when it was time to haul in the crops.

Some of the work the business wanted transferred there never did get sent there because the employees refused to do it because they knew how much we were being paid to do it opposed to what they got paid.

 

[The Sage of Main Street]

The money that goes to china funds the buildup of the chinese military

Shogun, Show Your Gun

If they attack anybody, it'll be the gutless parasites in their own Sphere of Influence, which is no concern of ours. What if the Chinese had military bases all over the Gulf of America, like we have over there?