Posted on 06/05/2019 7:38:12 AM PDT by reaganaut1
Tariffs are a popular remedy to maintain a favorable balance of trade and create domestic jobs. Some believe tariffs will foster a renaissance of American manufacturing, but let’s consider the facts.
America has six million unfilled jobs, with almost every industry desperately trying to hire qualified personnel. Our trade surplus is widening as these trade wars progress, and international relations are very stressed.
Free trade allows buyers and sellers to be winners and facilitates comparative advantage and the division of labor. For example, iPhones are designed and engineered in the United States, manufactured in China, and sold worldwide. China assembles the iPhone, but many countries provide the components, software, and technologies for this amazing computer.
Apple is now enduring tariffs imposed on China and restrictions on the sale of technologies to Chinese companies such as Huawei. Chinese buyers have reduced their purchases of iPhones because of American tariffs. If the U.S. imposes tariffs on the importing of iPhones, it will have a very adverse impact on Apple and its suppliers. More importantly, Americans rely on iPhone technology in every industry to operate their businesses; for example, chefs store their recipes, contact their users, and order food from this small device.
Tariffs are the favorite ploy of the Mercantilist; however, the unintended consequences of tariffs abound, causing pain for many industries, including agriculture, energy, steel, automotive, retail and, now, information technology. Most all U.S. industries are losing sales momentum because of tariffs or concerns about tariff policy. This means GDP might quickly revert from a robust 3 plus percent to under 2 percent.
(Excerpt) Read more at spectator.org ...
Here comes the scare talk.
Every job can be filled at the right (i.e., market) wage.
Americans rely on iPhone technology in every industry to operate their businesses; for example, chefs store their recipes, contact their users, and order food from this small device.
Not only iPhones can do these things.
Because China plays fair on any level.
We built up the strongest communist state in history and I think I can speak for others when I say many are sick of your bull St. threads
At least have THE B..LS to say you sent Luke Trump.
It might be possible to have some respect for you.
Mexico and China are loved more than the US over on DU in case you were looking..
And I defended you last time.
What a person to waste a defense on.
America has six million unfilled jobs, with almost every industry desperately trying to hire qualified personnel.
and we have 40 million lazy people on WELFARE and FOOD STAMPS. Abolish Welfare and they can All go to work.
How hard is this to understand?
Democrats sold us out to China and Mexico for decades - Trump's trying to stop the rip-offs.
It only hurts for a little while; then things vastly improve. ;)
That rising GDP?
The one that suffered under Obama?
No credibility even on the irrelevant point.
Illegal alien invasion a continued threat to US GDP.
“Tariffs: A Threat to America’s GDP”
But doing nothing and getting bent over isn’t an option either...So how about a little short term pain now for a better deal and a better future or have we already forgotten the lessons of “the greatest generation” and their forbearance and sacrifice to ensure American victory...I guess we have.
Oh well, it was a good run.
If a 25% tariff raises the price of a $1,000 item produced in Mexico to $1,250 ... then how exactly does this negatively impact GDP?
1. If I buy the item at the higher price, the contribution of this sale to the nation's GDP is actually 25% higher.
2. If I don't buy the item, I have $1,000 to spend on something else -- like an alternative item, concert tickets, etc. In this case, the contribution of this activity to the nation's GDP is the same as it would have been if the imported item had cost $1,000.
What am I missing here?
You haven’t been here long.
He has been an open borders and amnesty nutcase forever.
Because tariffs and currency manipulation have failed so for the Chinese.
Free traders in a mercantilist world are suckers.
“6 million unfilled jobs” ...Yet labor participation rate is 62.8%. So roughly 90 million unemployed Americans.
“Apple is designed in America, made in China” Actually, Apple is now an Irish Company because they fled the Obama corporate tax increases. So....I don’t really care about Apple’s tariffs.
Reality is that Tariffs are just a consumption tax. They hurt the people most that are buying foreign products, support local industry, and help diminish the Federal Deficit by raising tax revenue. We should stop the ‘class warfare’ and actually support Americans and American industry, Tariffs are just good way to help with that.
Trump is for free trade. His tariffs are cudgels to get attention to promote American exports
Our trade SURPLUS is widening?
No, actually our trade DEFICIT is shrinking back to its unacceptably huge size, after a slight run on Chinese products caused by everyone trying to grab them while they’re cheap.
So far, there has been ZERO anticipatory price hikes; we’ll see with the next inflation report next week if AFTER the Chinese tariffs hit, there’s a spike in inflation, but early indicators answer NO.
Yes, the tariffs will be paid to a significant degree by Americans... and go into the American treasury for the benefit of Americans. Any amount they AREN’T paid by Americans will be pure gravy. I don’t feel bad for importers of plastic crap seeing their profit margins reduced, and I won’t feel bad if they decide to stop importing if they decide their profit margins aren’t large enough.
Trump is for free trade but not if we put ourselves at a huge disadvantage.
Yep. All the predictions of doom and gloom over tariff’s have yet to materialize. Not to say they couldn’t, but not so far like most predictions from the establishment.
I am not sure why we listen to them. Their track record is awful. They have told us Trump is wrong over and over and so far he has defied prediction.
Yep. War is hell. We get that.
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