Part of this is to push companies to make things in America, that even if you have to raise prices because it is made in America that money is going to Americans
Do I think it is flawed and will never work? Yes
This is the new “we are gonna build a wall and Mexico is going to pay for it.”
Something will happen that is half-assed to say “he got his goal” that would be expensive for the US. And his supporters will love him for it.
This depends on the elasticity of demand and supply. If the demand is more elastic than the supply, then the business will bear more of the burden of the tax. If the supply is more elastic than the demand, the firm will bear more of the burden, and unless we are talking about perfect elasticity or perfect inelasticity, neither the customer nor the firm will bear 100% of the burden.
What exports?
The one thing that’s not considered here is those that consume less will ultimately pay less.
What people tend to forget is that the US is the second largest exporter in the world. Almost as big as China, multiple times more than the next biggest exporter. If there are retaliatory tariffs it hurts American factories that export
You can tell me that factories are going to open up to sell to Americans, but part of that calculus would be how much of what is made at that factory could be exported. With big tariffs that is a lower.
The other point that needs to be made is this is a consumption tax. If you pay more for a lot of what you buy, it hurts people living paycheck to paycheck. Who does it help? Those who pay a lot of taxes.
People who make $15-$20 an hour rely on cheap clothing, shoes, food to make ends meet. That $12 shirt at Costco or Walmart is now that much more expensive. I mean how much income tax does a guy working at Amazon for $18 an hour pay? Certainly less than if 1/2 of what he buys in 20% more expensive. But if you make $150k, this plan sounds great to you.
But he’s obviously missing the entire point.
The goal is that the company would then instead source an American made T-shirt that would not be subject to the tariff.
I caught the first 90-ish minutes of the Rogan interview. As I also having a fundamental grasp on how tariffs work – Trump’s plan effectively increases taxes on those that spend most of their money to subsidize reducing the tax rate for wealthy people (Use tariffs to reduce corporate tax rate). It really feels like a Robin Hood in reverse to me.
This misrepresents Trump’s use of tariffs.
Tariffs bring wars. Read the history of the 20th Century.
This is great! Now explain what happens with an unrealized capital gains tax
Nice man explains tariffs in a way that a 10-year old can understand
MAGA with the intellectual capacity of a 6-year old: “You’re wrong 😡”
Kicker: the wealthier you are the less you are impacted by tariffs because you spend less of your income on goods and services and have a higher savings/investing rate.
I think the first lesson in economics class was “there’s no such thing as a free lunch”
I think its a good explanation, but I think it is a bit simple. I think the big thing to look at is if it actually does increase domestic production, or if its used as a tool to repeal tariffs or other issues with countries like china.
An eye for an eye
This is no big news. The point is that by raising imports through tariffs you make domestic production less uncompetitive.
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Follow up, part 2–> [https://vm.tiktok.com/ZGd8jvDwb](https://vm.tiktok.com/ZGd8jvDwb)
Part of this is to push companies to make things in America, that even if you have to raise prices because it is made in America that money is going to Americans
Do I think it is flawed and will never work? Yes
This is the new “we are gonna build a wall and Mexico is going to pay for it.”
Something will happen that is half-assed to say “he got his goal” that would be expensive for the US. And his supporters will love him for it.
This depends on the elasticity of demand and supply. If the demand is more elastic than the supply, then the business will bear more of the burden of the tax. If the supply is more elastic than the demand, the firm will bear more of the burden, and unless we are talking about perfect elasticity or perfect inelasticity, neither the customer nor the firm will bear 100% of the burden.
What exports?
The one thing that’s not considered here is those that consume less will ultimately pay less.
What people tend to forget is that the US is the second largest exporter in the world. Almost as big as China, multiple times more than the next biggest exporter. If there are retaliatory tariffs it hurts American factories that export
You can tell me that factories are going to open up to sell to Americans, but part of that calculus would be how much of what is made at that factory could be exported. With big tariffs that is a lower.
The other point that needs to be made is this is a consumption tax. If you pay more for a lot of what you buy, it hurts people living paycheck to paycheck. Who does it help? Those who pay a lot of taxes.
People who make $15-$20 an hour rely on cheap clothing, shoes, food to make ends meet. That $12 shirt at Costco or Walmart is now that much more expensive. I mean how much income tax does a guy working at Amazon for $18 an hour pay? Certainly less than if 1/2 of what he buys in 20% more expensive. But if you make $150k, this plan sounds great to you.
But he’s obviously missing the entire point.
The goal is that the company would then instead source an American made T-shirt that would not be subject to the tariff.
I caught the first 90-ish minutes of the Rogan interview. As I also having a fundamental grasp on how tariffs work – Trump’s plan effectively increases taxes on those that spend most of their money to subsidize reducing the tax rate for wealthy people (Use tariffs to reduce corporate tax rate). It really feels like a Robin Hood in reverse to me.
This misrepresents Trump’s use of tariffs.
Tariffs bring wars. Read the history of the 20th Century.
This is great! Now explain what happens with an unrealized capital gains tax
Nice man explains tariffs in a way that a 10-year old can understand
MAGA with the intellectual capacity of a 6-year old: “You’re wrong 😡”
Kicker: the wealthier you are the less you are impacted by tariffs because you spend less of your income on goods and services and have a higher savings/investing rate.
I think the first lesson in economics class was “there’s no such thing as a free lunch”
I think its a good explanation, but I think it is a bit simple. I think the big thing to look at is if it actually does increase domestic production, or if its used as a tool to repeal tariffs or other issues with countries like china.
An eye for an eye
This is no big news. The point is that by raising imports through tariffs you make domestic production less uncompetitive.
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