said the rag that lied about collusion for two years... feh
Posted on 04/22/2019 5:43:15 AM PDT by reaganaut1
President Trump’s decision to impose tariffs on imported washing machines has had an odd effect: It raised prices on washing machines, as expected, but also drove up the cost of clothes dryers, which rose by $92 last year.
What appears to have happened, according to new research from economists at the University of Chicago and the Federal Reserve, is a case study in how a measure meant to help domestic factory workers can rebound on American consumers, creating unexpected costs and leaving shoppers with a sky-high bill for every factory job created.
Research to be released on Monday by the economists Aaron Flaaen, of the Fed, and Ali Hortacsu and Felix Tintelnot, of Chicago, estimates that consumers bore between 125 percent and 225 percent of the costs of the washing machine tariffs. The authors calculate that the tariffs brought in $82 million to the United States Treasury, while raising consumer prices by $1.5 billion.
And while the tariffs did encourage foreign companies to shift more of their manufacturing to the United States and created about 1,800 new jobs, the researchers conclude that those came at a steep cost: about $817,000 per job.
Mr. Trump imposed the tariffs last year in response to a complaint by the Michigan-based manufacturer Whirlpool, which claimed foreign competitors were cornering the American washing machine market with cheaper models that threatened domestic manufacturers. The tariffs started at 20 percent per imported washer and rose to 50 percent late in the year, after total imports exceeded a quota set by the administration.
Mr. Trump, a self-proclaimed lover of tariffs, hailed the move as a way to help American production and jobs.
(Excerpt) Read more at nytimes.com ...
Tariffs have never worked. It would be better to simply stop trading with China, a sworn enemy of the United Staes.
Yeah, the friendly Japanese killed semiconductor foundries in the US.
Maytag machines are made in China. Almost nothing is made in the US anymore.
Maytag machines are not made in the US. They are assembled in the US.
Ahem. American manufactures of washing machines did not spring up out of nothingness in four months. Instead, fewer people bought new washing machines during that time, so imports were down.
It takes years to get manufacturing facilities started; and, nobody is going to do it just to capture a 10% market share.
I just bought a new matching pair washer and dryer by LG. The cheapest washer model that is a front loader and high efficiency. The cost: $2,200.00. I can remember the day when you could get a new washer and dryer pair for $400.
That remark carried no useful content. I am just sure our Founders did not choose wood and sails over container ships. Support your stance with something besides baseless attacks on our Founders.
The Founders would have appreciated the relevance of my comment.
They anticipated that the world, including the economy, may change in the next couple of hundred years and put in a system that codified principles, not tactics.
Our global economy doesn't run off of tariff to generate revenue any longer and it's pure wishful thinking to assume that it could.
After Hurricane Irma flooded our neighborhood, I bought the cheapest available at Home Depot—a new $500 Amana.
How much of the Amana was made in the US, I don't know, but our tariffs should be postponed until after Hurricane Season!
Me? Not so much—as long as it isn't avocado or mustard.
No tariffs for you...
“Who manufactures Amana washing machines?
Whirlpool Corporation
Goodman still owns Amana’s air conditioner and furnace division, and Amana home appliances are now owned and manufactured by the Whirlpool Corporation. Amana Under Counter line was spun off and is now marketed under the Aficionado marque.”
said the rag that lied about collusion for two years... feh
I am definitely pro-tariff here. I have a GE washing machine running great 10 plus years.
This was extracted from one of his papers where he noted that marketeers will gladly run amok over their countrymen just for monetary gain. Money means more to them than the welfare of the Nation or its citizens.
That's an argument to reign in capitalism. It has nothing to do with tariffs or globalism.
No, it means that merchants won’t do what is right for the country. They will do what is right for themselves. This has been proven repeatedly, even in recent times.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.