Prices of Goods in the U.S. Did Not Rise At All Despite China Tariff Hike

Discussion in 'Economics & Trade' started by US Conservative, Jul 12, 2019.

  1. Dispondent

    Dispondent Well-Known Member Past Donor

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    Not likely, the point of tariffs is to get importers to look elsewhere, not to in any way punish the domestic consumer. If there are tariffs on Chinese goods, the most logical conclusion is to buy equivalent goods from somewhere without tariffs. That is why tariffs harm China and not us...
     
  2. Andrew Jackson

    Andrew Jackson Well-Known Member

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    :bored:

    So what?

    Nothing posted here will change one vote.
     
  3. US Conservative

    US Conservative Well-Known Member Past Donor

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    Thats not entirely true though. (econ 101 is basic econ)

    Companies set prices to maintain market share all the time.
     
  4. 61falcon

    61falcon Well-Known Member

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    40% of American workers cannot afford an unexpected $400.00 bill.The wealthy are getting richer and the middle class and the poor are getting the shaft!!!
     
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  5. cristiansoldier

    cristiansoldier Well-Known Member

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    Tariffs are a tax on businesses. I think almost all of the democrats want to increase taxes on business.
     
  6. The Mello Guy

    The Mello Guy Well-Known Member

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    If the same item made here was the same price as the ones made in China, we wouldn’t need tariffs lol
     
  7. The Mello Guy

    The Mello Guy Well-Known Member

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    Turns out taxes don’t increase prices!
     
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  8. US Conservative

    US Conservative Well-Known Member Past Donor

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    More Americans are working, more Americans are earning more per hour, and consumer confidence is through the roof.

    The democrats scare stories aren't really panning out.
     
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  9. cristiansoldier

    cristiansoldier Well-Known Member

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    What you are referring to is predatory pricing. It is an anti-competition and most consider harmful to the free market. It is illegal in some circumstances.
     
  10. Socratica

    Socratica Well-Known Member

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    No, they're a tax on imports from shippers aboard to domestic firms. As a result of a tariff, domestic firms pay higher prices for imports, which (inadvertently) affect consumers in the form of higher prices; so long as firms choose to pass on these prices. The key word here is CHOOSE.

    That would be like saying the minimum wage is a tax on consumers/businesses because increasing the minimum wage forces firms to increase their labor cost, which would (inadvertently) affect consumers as they increase the prices of their goods and services. Does that make any amount of sense to you?

    Maybe because... it's not a tax on domestic firms... They're not a tax on firms, in general.
     
    Last edited: Jul 12, 2019
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  11. Arkanis

    Arkanis Well-Known Member

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    How do you explain the decline of Personal Consumption Expenditures since Trump started his trade wars with Canada and China?

    https://fred.stlouisfed.org/graph/?g=mJz
     
  12. cristiansoldier

    cristiansoldier Well-Known Member

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    The importers are domestic firms. I spent many years working for an importer in the financial department before changing careers. A tariff on our imports would be passed onto our buyers which eventually trickles down to the consumer.

    The difference between minimum wage and tariffs is the minimum wage is paid to the worker. The worker has more income and can spend it on anything he wishes. The tariff is paid to the government. The government can spend it on whatever it wants just like any other tax revenue. I think what you are trying to say is both is an expense to the business.
     
    Last edited: Jul 12, 2019
  13. Borat

    Borat Banned

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    After 8 years of Bill Clinton and 8 years of Obama this situation is indeed disastrous. So much for the dems'/libs' promises of well paying jobs, shovel-ready jobs, clean jobs, green jobs, training etc while in reality these democrats have been fully committed to outsourcing good jobs to China and Mexico and flooding domestic labor market with tens of millions of wage-suppressing illegals.

    Thank god the situation has been steadily improving since the moment president Trump moved into the White House, despite the deep stage's never ending resistance and outright sabotage. Of course the damage done by multiple previous administrations will take more than 2 years to fix.... at least 6 more years.
     
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  14. US Conservative

    US Conservative Well-Known Member Past Donor

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    Thats not what Im referring to. Predatory pricing is illegal.

    What is Predatory Pricing?
    Predatory pricing is the illegal act of setting prices low in an attempt to eliminate the competition. Predatory pricing violates antitrust law, as it makes markets more vulnerable to a monopoly.
    https://www.investopedia.com/terms/p/predatory-pricing.asp
    However, allegations of this practice can be difficult to prosecute because defendants may successfully argue that low prices are part of normal competition, rather than a deliberate attempt to undermine the marketplace. And predatory pricing isn't always successful in its goal, due to the difficulties in recouping lost revenue and successfully eliminating competitors.
     
  15. US Conservative

    US Conservative Well-Known Member Past Donor

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    I think its an irrelevant metric from the gloom and doom left.
     
  16. US Conservative

    US Conservative Well-Known Member Past Donor

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    Cash for clunkers really turned the Obama economy around.

    Trump keeps this up and he just might win the election again.
     
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  17. vman12

    vman12 Well-Known Member Past Donor

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    Where did I say it was made here?
     
  18. Borat

    Borat Banned

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    Simpletons and economic ignoramuses not understanding the difference between taxes and tariffs and not having the first idea on how free markets work may indeed get confused and jump to a bunch of absurd and ridiculous conclusions. Economic education is the key to preventing these mistakes.
     
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  19. Socratica

    Socratica Well-Known Member

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    That's irrelevant from the perspective of international trade. All that matters in the Balance of Payments is where the origin of the good or service is produced.

    Your firm did this because it chose to do this. Whether or not it needed to offset cost is irrelevant as well.

    None of this is relevant, nor does this address the point. Labor is a market just like any other good or service. Tariffs, similar to price floors, create a dead-weight loss in the potential equilibrium between supply and demand. When you enact a tariff, you are potentially preventing a transaction between buyer and sell who would otherwise choose to interact. When you implement a price floor/minimum wage, you are also potentially preventing a transaction between buyer and sell who would otherwise choose to cooperate — the key word here being CHOOSE.

    Tariffs and the Minimum wage operates very similiarly. Much of this is covered in microeconomics.
     
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  20. Arkanis

    Arkanis Well-Known Member

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    The GDP growth rate forecast is 2.4% for 2019.

    A decrease of 0.5% since 2018.

    Trump had promised 5% en 2017.

    Are you going to tell me that the tarrifs have nothing to do with it?..... obviously.

    https://www.stlouisfed.org/publicat...urth-quarter-2018/forecasters-gdp-growth-2019

    .... Your answer finally proves that you have no more economic knowledge than the leftists.
     
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  21. The Mello Guy

    The Mello Guy Well-Known Member

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    I thought the point of tariffs was so American business could compete?
     
  22. The Mello Guy

    The Mello Guy Well-Known Member

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    Tariffs are taxes.

    https://www.forbes.com/sites/teresa...are-taxes-raising-costs-and-killing-jobs/amp/

    https://www.atr.org/norquist-tariffs-are-taxes?amp

    https://en.m.wikipedia.org/wiki/Tariff
     
  23. 61falcon

    61falcon Well-Known Member

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    Bloomberg reports household debt for the first 2 months of 2019 was a record $13.7 Trillion with most of the growth in nonmortgage debt with $2.6 Trillion of it being subprime high interest debt.America's working class is suffering.
     
  24. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    Its good to know that you wish for Americans to suffer through financial hardship because of your personal dislike for one man.
     
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  25. Borat

    Borat Banned

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    Nonsense. Minimum wage hikes preclude any legal possibility of obtaining cheaper labor, lower wages are simply illegal. Tariffs do not preclude both businesses and consumers from shopping around and finding cheaper prices from companies/countries to which these tariffs do not apply.
    Taxes are levied on domestic companies/individuals, tariffs are levied on foreign companies/countries to which there are plenty of alternatives (domestic and foreign) not subjected to these tariffs. Vietnam and Mexico and most of the world are tariff-free, buy their export and save like there is no tomorrow.

    Duh
     
    Last edited: Jul 12, 2019
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