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To: xzins

Clarify for me - what makes sense? I agree with you about profit/cost but that’s not the reality of Trump’s statement.

Just want to be clear here..........


58 posted on 03/11/2016 4:31:36 AM PST by Reagan Disciple (Peace through Strength)
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To: Reagan Disciple

Classic neo - conservative advice says that tariffs start a trade war and cause imports to cost more. They consider that always to be bad. It is true that adding a 25% tariff to a tv will make a $1000 tv cost $1250.

But all of that tv was made overseas. All of the jobs, taxes, and manufacturing base is overseas. They can undercut US wages so greatly that it is cheaper to build that overseas AND undersell the same made in America products in American stores. The tariff means their products are more expensive on the shelf when you go to buy so you have an incentive to buy American because it now is cheaper.

The overseas manufacturer now has an incentive to build in America instead, so he can make more money.

The nation gets the tariffs to pay toward the US budget. That was how the founders envisioned financing much of the budget.

We also get the manufacturing base, the spin off suppliers, the jobs, the distribution, the retailing and service jobs. When It’s overseas all we get is the distribution and Walmart jobs. The other way we get all of them

And trade war? THEY want to sell here. WE can be self sufficient. And THEY are already tariffing us and discriminating against us. Why not have all the better paying jobs, too?


77 posted on 03/11/2016 5:13:48 AM PST by xzins (Retired Army Chaplain and Proud of It! Prayer for Victory is the ONLY way to support the troops!)
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