Tariffs, Protectionism, Trade Deficits, and Trade War

[SuburbanFarmer]

I know you’re not this dumb - the point of the tarriifs is to increase wages in the US. Why you so pro Slave labor?

Can you define how a tariff puts any upward pressure on wages?

Tariffs are designed to make foreign goods more expensive than domestic goods, which in turn, makes it more profitable to manufacture the goods locally. Thus, the demand for labor goes up, which in turn, increases wages (not counting automation - I don't want to go down that route in this thread).

Manufacturers are already selling their goods at the highest price than can get - increasing labor costs then has to come out of profit margins...not out of higher prices.

Domestic manufacturers would collectively have to raise prices to match the foreign goods....but someone always undercuts...which opens the flood gates..

Correct. So you’re looking at a broken window fallacy.

“We can sell more stuff, because they can’t sell it here”. Fine, until they all raise their prices to match - which they always will.

Now everybody is paying more, and the domestic companies have higher profits, for the same production.

Next, quality suffers because there’s no reason to try so hard. Now the consumer has a choice between shitty domestic stuff (beer, cars, whatever) vs slightly more expensive foreign stuff of higher quality.

End result: profits, and tax revenue, but no change in wages or production.

[Zlaxer]

Correct. So you’re looking at a broken window fallacy.

“We can sell more stuff, because they can’t sell it here”. Fine, until they all raise their prices to match - which they always will.

If that happens, then go get a bunch of your friends and start a business to undercut them and make $$$,$$$,$$$.00.

[Speaker to Animals]

Correct. So you’re looking at a broken window fallacy.

“We can sell more stuff, because they can’t sell it here”. Fine, until they all raise their prices to match - which they always will.

If that happens, then go get a bunch of your friends and start a business to undercut them and make $$$,$$$,$$$.00.

They really do not understand supply and demand.

[SuburbanFarmer]

Correct. So you’re looking at a broken window fallacy.

“We can sell more stuff, because they can’t sell it here”. Fine, until they all raise their prices to match - which they always will.

If that happens, then go get a bunch of your friends and start a business to undercut them and make $$$,$$$,$$$.00.

They really do not understand supply and demand.

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

[Zlaxer]

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

Or, you could go convince some VCs that there's a serious opportunity to make some $$$ if they can front the seed cash to set up a factory and hire a bunch of autoworkers from Chevy, Ford, BMW...etc....

[clubgop]

If that happens, then go get a bunch of your friends and start a business to undercut them and make $$$,$$$,$$$.00.

They really do not understand supply and demand.

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

Because undercut and Tesla go hand in hand.

[SuburbanFarmer]

They really do not understand supply and demand.

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

Because undercut and Tesla go hand in hand.

A $30,000 electric car that drives itself, and has a 300-mile range?

Have you seen what you can buy from the others for $30,000?

[Okeefenokee]

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

Because undercut and Tesla go hand in hand.

A $30,000 electric car that drives itself, and has a 300-mile range?

Have you seen what you can buy from the others for $30,000?

Those cars are garbage. Go read some consumer reviews. They are shit.

And the customer service is just what you'd expect from the guy that made paypal.

[SuburbanFarmer]

Because undercut and Tesla go hand in hand.

A $30,000 electric car that drives itself, and has a 300-mile range?

Have you seen what you can buy from the others for $30,000?

Those cars are garbage. Go read some consumer reviews. They are shit.

And the customer service is just what you'd expect from the guy that made paypal.

My dad got one this week. It’s freaking amazing.

Model 3, not the expensive S or X.

[clubgop]

Sure. Let’s say that I wanted to undercut a major industry, like autos.

I just need 100 million in capital or so, come up with a better product, and.... Elon musk. Notice how fast they’re rolling out the attacks on him now. He’s vilified. And that’s only because they can’t come up with a new regulation fast enough.

Because undercut and Tesla go hand in hand.

A $30,000 electric car that drives itself, and has a 300-mile range?

Have you seen what you can buy from the others for $30,000?

Pay no attention to the subsidies, insurance, and maintenance cost.