Quote:
Originally Posted by
accountinquestion
Quote:
Originally Posted by
tableplay
If tariffs are nothing more than taxes on Americans then why is China so upset about them ?
The taxes increase the cost of their products to the American consumer and therefore the consumers buy less. The tax-payers ultimately pay for it, but one could argue that tariffs also come out of the Chinese pockets, because now the consumer is willing to pay the TAX plus the product. So in theory, Chinese could sell the same amount for the same tariffs.
It isn't that the Chinese are upset, it is that the average Trump supporter isn't smart enough to really understand that these are taxes on themselves. Or maybe they do, but refuse to call it what it is? Taxes raise revenue and can be punitive. In this case they're punitive, but they punish the Chinese so everything is "ok". Is that how it is supposed to work?
I'm not even arguing against the tariffs, just tired of the crap I see that is a product of taking in too many wingnut news outlets. Call a spade a fucking spade.
This analysis is too simplistic. If it is true as you claim that the tariffs are just a tax and directly coming out of consumer's pockets, then the 25% tariffs already imposed on Chinese products should have shown up as a large across the board rise in prices. But we just haven't seen that. Inflation in the US has barely changed and is relatively mild and still below Fed targets. How can that be? What is really happening is fourfold:
1. Chinese manufacturers have been forced to lower prices to protect their market share
2. China's inflation rate has doubled since January. They are devaluing the Yaun to make their exports less expensive.
3. Many global companies are still moving manufacturing away from china to other countries to avoid the tariffs.
https://www.wsj.com/articles/manufac...na-11563096601
4. Some of this is in fact paid for by US consumers. But it is clearly not a direct tax on consumers as you claim.
It's easy for you to say things like 'the average Trump supporter isn't smart enough to XYZ', but making blanket claims like Tariffs are just a tax on US consumers isn't right, isn't smart and tells us more about your hate for Trump than the current state of Free Trade economics. China's growth rate is the lowest in 3 decades. They, not the American Consumer are clearly paying for a good percent of the Tariffs. Of course they have retaliated and some of our Farmers are suffering too, but because of our huge trading deficit we have the upper hand and Trump's team recognizes this even if you do not.
My opinion is President Trump is exactly right in turning up the the pressure on China through tariffs. We need balanced trade and Fair Trade not allegedly 'Free Trade'. We do have the upper hand for now. If you know anything about the mercantile trading tactics of China you'd know they not at all about 'Free Trade'' and the longer we kicked the can down the road for some other President to deal with it, the harder it will be to fix.
If you want to learn more about how bad it is to continually run trade deficits and a novel approach to fixing it you might be interested in this 2003 article by Warren Buffet. That's back when our deficit with China was only $100 billion a year instead of the $500 billion it is today. I doubt you're really interested or understand the problem though.
https://fortune.com/2016/04/29/warre...foreign-trade/