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To: 1rudeboy
I think I’m getting a grasp on it . . . .

Great! So hypothetically if 12% of imported products had a 10% tariff on them, then 8 years later 12% of imported products had a 10% tariff on them and an additional 8% of imported products had a 5% tariff on them, have "average tariffs" risen or fallen?

“Of the $387 billion in goods the U.S. imported in 1986, more than 20% was protected by special tariffs, quotas, or other types of restraints, according to Gary C. Hufbauer, a Georgetown University professor. When Reagan took office, the figure was 12%.”

531 posted on 05/12/2009 4:10:16 PM PDT by Mojave (Don't blame me. I voted for McClintock.)
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To: Mojave

Let’s say that, in 1980 the average tariff was 10%; in 1986 the average tariff was 5%. What was the effective tariff rate in 1986, given that the tariff rate was cut in half, but applied to 20% more products?


535 posted on 05/12/2009 4:12:33 PM PDT by PugetSoundSoldier (Indignation over the sting of truth is the defense of the indefensible)
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To: Mojave
A: 10 products at 12% = average of 12%
B: 10 products at 12% and 5 products at 6% = average of 10%

Total number of products with tariffs under A = 10.
Total number of products with tariffs under B = 15.

Someone please check my math, I don't have my calculator (and I don't bother with the internet ones).

539 posted on 05/12/2009 4:20:29 PM PDT by 1rudeboy
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