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re: How do tariffs bring costs down?
Posted on 8/30/24 at 6:43 am to RiverCityTider
Posted on 8/30/24 at 6:43 am to RiverCityTider
quote:
We are losing our ability to manufacture anything. We are losing in robotics and the science of manufacturing due to our overly financialized economy. We are basically becoming a third world country.
3rd world is massive exaggeration. We have the largest economy on the planet and we’re just a third of the size of China. It’s actually the top of the first world.
And raising tariffs isn’t going to bring back our manufacturing on a sizeable level. Countries and industry know that they’re not permanent they’re just used as leverage anyway.
So bottom line here seems to be that Trumps tariff plan is probably not going to solve our inflationary issues and could actually worsen it
Posted on 8/30/24 at 7:05 am to ShoeBang
quote:
It’s an incentive to produce more goods in the USA to make domestic products more competitive. Which provides jobs and tax revenue here
yea - that is sort of the definitional reason for tariffs.
If it were some essential product we have no capacity to produce ourselves, a tariff would be silly. But for a company to build automobiles in China using 'slave labor' and undercut our capacity to produce (and sell) similar vehicles here at home they should be charged a tariff, just to even out the 'slave labor' factor.
Our government ran a long time being financed almost exclusively by tariffs - that is what allowed us to become so self-sufficient so early in our history.
Posted on 8/30/24 at 7:15 am to SlidellCajun
quote:
anyone selling those products will pass the cost onto the consumer- which raises prices.
Tariffs are very inflationary, plus the other countries will retaliate. So our companies will have less access to foreign markets.
Posted on 8/30/24 at 7:27 am to Penrod
quote:
Tariffs are very inflationary, plus the other countries will retaliate. So our companies will have less access to foreign markets.
That's the point. Creating an environment where "made in America" is relevant again. Make it possible for Americans to start businesses here to fill the void.
It's currently not possible when overseas they use child labor and pay pennies a day.
America needs to become less dependent on foreign goods. The multi national corporations seek profit over people and don't give two shits about what's best for America. Those same multi national corporations control our federal government and our foreign policy so that it benefits their bottom line regardless of the effect on America.
Posted on 8/30/24 at 8:17 am to lake chuck fan
quote:
It's currently not possible when overseas they use child labor and pay pennies a day.
Fine. Put a tariff in place to ward off those countries. Why a tariff on Europe and Japan, just to name a few? Tariffs should be targeted for reasons similar to what you cited. But that is not what Trump is saying.
Posted on 8/30/24 at 8:45 am to SlidellCajun
quote:
One of trumps claims is that he will bring down inflation. I think specifically, he intends to lower fuel costs which should lower transportation costs and thus, the cost of goods. I get that.
Lowering fuel costs will have a beneficial impact on costs of things that need to be transported.
quote:
Another claim of trump is that he will levy a tariff on Chinese imports (I think north of 50%) and other countries at 25%. I think we’d all agree that anyone selling those products will pass the cost onto the consumer- which raises prices.
If you are starting a business, you are gonna examine the competition first. If your competition is Chinese companies selling slave wage made stuff for super cheap, you cant beat those prices. China knows this. They will starve out any competition and have complete control and ability to manipulate that market. Tariffs will make the Chinese either raise their prices or at least put a floor on their ability to try and snuff out competition. The tariffs are not going to lower costs initially, fair to say never, but you will have a chance to buy higher quality things made in US for a similar price to what you are paying now for the poor Chinese quality.
What could happen is that the prices remain the same while the average wage of Americans goes up. This is a more likely scenario than prices falling.
quote:
Frankly, I think trump needs to temper the tariff talk.
Tariffs are a perfectly practical economic strategy. You cant have one country snuffing out all of your countries manufacturing just because they can pay slave wages(or actually use slaves). Im sorry if you have to pay pennies more a year for your plastic trinkets.
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