tysker said:
Gigem314 said:
tysker said:
infinity ag said:
ha ha trump is not backing down!
He will impose tariffs but call it something else.
Just call them taxes.
Taxation without representation has worked so well for leadership like Trump
While ideally I'd prefer we not impose more tariffs, what right do the countries we're 'taxing' (who are also trying to get the most of out us) have to representation?
American producers of imported goods and end consumers bear the burden of tariffs.
This is an economic policy we know didn't work anymore by the 1890s. And it didn't work again when the government tried in the 1930s or again in the 1970s.
red pen, blue pen economics.
All things held equal, for one market, you are right. But, now you have to factor in:
1) Currency manipulation;
2) A coordinated global effort to take advantage of the US's ideologically stubborn approach. Every single country in the world protected their own industrial market against US competition through tariffs; we did the same with only two products: trucks and airplanes.
3) Our trading partners' giant tariffs on the US
4) Our trading partners' giant restrictions on US capital investing in their assets.
5) the brazen theft of US intellectual property on the backs of cheaper goods.
Out of the above, #4 might really be one of the most important. Other countries purposefully deflate their currency so that they can sell us stuff, but then restrict what we can do with that currency in their economy. In a world where we could use those inflated USDs to buy the best assets in a foreign country, the trade deficits would be lower.
Macro is hard. Pretending it is as simple or straight forward as you do ignore that there is no "all else held equal" in the real world.
Mercantilist tariffs are a bad idea. That is not what we currently have in the US.