Posted on 06/19/2018 5:20:46 AM PDT by reaganaut1
Ha!
I will give you an example of how tariffs work.
A US and German company decide to build X-bike. Everything is the same between the two bikes....technology, brakes, tires, etc.
So the US company sits down and figures up the raw material, labor cost, and company profit line (with taxes figured into this estimate). They come to a wholesale price that the middle guy will reach and pay. Let’s call this ‘Y’.
The German company does the same thing, figuring up the raw material, the labor cost, and company profit line (with taxes figured into this estimate). But we reach this interesting problem. You go and figure healthcare costs, personal taxes, VAT, cost of living, etc....and this German wholesale price is ‘Y’ + 15-to-20 percent. Because of gas taxes, property taxes, sales taxes, pension cost, etc....the German has a bigger umbrella to cover.
So these two bikes are delivered to a German store, and the US-made bike (without a tariff) would be probably 15-to-20 percent more....minus out the transport cost on the US bike to be delivered there.
Can these two bikes compete? No. Is it unfair competition? The German would say so.
So the answer, because the German can never compete on a fair and level field because of his cost of living and various taxes....is a tariff. You inflate the American’s bike cost to equal the German’s cost, and probably exceed it by 5-percent.
Imagine this across literally thousands of products and the nature of German tariffs...literally to cover up the fact that they can’t compete without the tariff existing.
So there is an admission that taxes raise prices and add to inflation.
I will concede they even create more jobs. But what type of jobs do you get with tariffs vs taxes...……………..
Sounds good - now we can start PRODUCING stuff ourselves.
“Just ignore these globohomo/open border/fake free traders. They want America destroyed.”
I don’t think they want America destroyed, they just don’t understand that’s a good idea to keep some production in this country.
THE ENEMY of the American people IS the media ..WE NEED TO CONTINUE DRILLING THAT INTO the minds of the American populace!!!! My God if I were only rich I would rent billboard space and slap that on it!!!
“Well, it will increase the price of imported goods.”
It will increase the price of domestic goods. For a number of reasons. First, the protection the tariffs provide will cause some American manufacturers to jack up their current prices, because they no longer have to compete.
Second, some of those imported goods are NOT finished goods for sale at Walmart. They are industrial products that American manufacturers need to make “Made in USA” goods. The prices of those goods will also go up, and there may not be a tariff on their foreign competitors making the same finished product, at least not right away.
Alternatively the supply of the Made in USA goods may shrink because the US manufacturers cannot get component parts at a price they can afford.
Trump’s tariffs are negotiating tactics.
Relax and make money trading the volatility in the VIX.
I wish I had kept my old Maytag. Made the mistake of leaving it with our last house. Now, we have a Bosch. which works just fine but stinks - literally.
Is it now?
Maybe Americans want a living wage. They can have that without government interference.
I'm pretty sure that Americans do want a living wage. That's part of the problem. Our living wage is a lot higher than offshore living wages.
Or we can import slave labor and products made by slave labor and screw Americans.
We can import products made by cheaper overseas suppliers and screw some Americans. Or we can slap tariffs on imports, hike prices people pay, and screw other Americans. At the end of the day somebody's going to get screwed.
We are #2 on planet earth in manufacturing, barely being surpassed recently by a nation with 4 times the population and 1/10 the wages. How long do you guys keep up the lie that nothing is produced here?
WSJ = propaganda.
There will be pain, but China has taken advantage of the U.S. for years now. It’s time to even the playing field.
Folks...BUY MADE IN AMERICA. Support American workers, American businesses.
You are fighting last year’s war. You lost.
Tariffs are an economic form of warfare. What the US is doing now is fighting back. The alternative proposed by so-called “free traders” is to surrender.
we just had to replace internal bearings on our “MAYTAG” -machine was so noisy it sounded like it was airborne.
Buy stuff second hand-fix your own cars, washers, etc..buy parts on E-Bay.
#MAGA American ingenuity
Seriously dude the gig is up. An 800 billion$ trade deficit with the world is insanely bad for America.
If you believe that is healthy then you are a dummy.
Did you write this dreck in the article that nobody read?
Are there a lot of typos? You guys always have typos and bad grammar.
Of course, you're anti-Trump crap is always so obvious.
Just another reaganaut1 anti-Trump Fake News hit piece.
Let’s hear about the ripple of vehicle and EPA regulations.
I have enough Chinese stuff, I can wait for the market to stabilize.
“We are #2 on planet earth in manufacturing, barely being surpassed recently by a nation with 4 times the population and 1/10 the wages. How long do you guys keep up the lie that nothing is produced here? “
Soon we’ll be back to #1, that’s why we voted for Trump.
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