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To: exit82
Bill Mitchell ‏ Verified account

@mitchellvii 6m6 minutes ago

Liberal economic policy never takes into account supply and demand or taxpayer behavior. They think a 25% tax hike means a 25% increase in tax revenues. No it doesn't. Because businesses will change their behavior to avoid your tax. The economy will slow and revenues may fall.

Let's dispel #1 myth of tariffs - that they are passed on to consumers.

Just because Trump puts a 25% tariff on you doesn't mean the laws of supply and demand no longer exist. If China raises their prices 25%, no one is gonna buy their junk. That's a 100% tariff on themselves.

Also US manufacturers building stuff in your country just because it's cheap will find another country where it's cheaper than your tariffed prices.

In the end, these countries have one option - start trading fairly and tariffs go away.

Consumers never see it.

5,476 posted on 06/10/2019 4:46:57 AM PDT by exit82 (Democrats are unfit to govern--they hate America, the Constitution and those they don't agree with.)
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To: exit82

Sad that Bill has to explain BASIC ECONOMICS to folks....but, I am glad he is.


5,495 posted on 06/10/2019 6:28:30 AM PDT by Jane Long (Praise God, from whom ALL blessings flow.)
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