Tariffs---stupid idea--why do Presidents think they will work?

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tommyjo

New Member
Donald Trump doesn't understand that tariffs don't work? How can a self described god of business not understand this basic concept? It isn't like he has to go too far back into history to see that they don't work. Hell, even those whose memories stop at Jan 20, 2009 have ammunition on this front...


In March 2002, President George W. Bush imposed a 30% tariff on Chinese steel. The results were chaotic. In a report put out by Consuming Industries Trade Action Coalition in February of that year, the coalition found the tariffs against China boosted the overall prices of steel and cost the U.S. 200,000 jobs in businesses that buy steel, representing $4 billion.

In another recent situation, in September 2009, President Obama imposed a three-year tariff on car tires from China. Chinese imports went down, but the tires were simply sourced from other countries, the LA Times noted. According to the Peterson Institute for International Economics, 1,200 tire jobs were saved in the U.S., but through costs passed along to American consumers, 2,500 jobs were lost indirectly.
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http://finance.yahoo.com/news/presi...ned-about-tariffs-the-hard-way-180438688.html

Try reading the Executive Summary of the report noted in the first paragraph...http://www.tradepartnership.com/pdf_files/2002jobstudy.pdf

Don't worry, you don't have to actually read much...the summary is on pages two and three. It even has a colored graph for those who can't read English.

Our President shows on a daily basis how unbelievably unqualified he is. What will today bring?
 
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Kev_Russell

New Member
It's an awful lot to ask people to read. They'd rather just make it up as they go along.

Manufacturing as it existed up through the 1950s or so will *never* return to the U.S. Ignoring that and continuing to prop up a dream we should have long ago left behind will only create more economic bubbles.

I doubt President Cheeto has ever take a basic economics class.
 
GURPS

GURPS

INGSOC
PREMO Member
Larry Gude said:
Your trial period is about over. You've shown a sign or two of reason but you keep discrediting yourself. What's it gonna be? To be taken serious or just another hypocrite?
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that is either LB or Salvador reborn ... don't expect much
 
itsbob

itsbob

I bowl overhand
tommyjo said:
Donald Trump doesn't understand that tariffs don't work? How can a self described god of business not understand this basic concept? It isn't like he has to go too far back into history to see that they don't work. Hell, even those whose memories stop at Jan 20, 2009 have ammunition on this front...




http://finance.yahoo.com/news/presi...ned-about-tariffs-the-hard-way-180438688.html

Try reading the Executive Summary of the report noted in the first paragraph...http://www.tradepartnership.com/pdf_files/2002jobstudy.pdf

Don't worry, you don't have to actually read much...the summary is on pages two and three. It even has a colored graph for those who can't read English.

Our President shows on a daily basis how unbelievably unqualified he is. What will today bring?
Click to expand...

I would normally agree with this assumption, but this isn't China, and this isn't Europe. We're not talking Chinese Steel, but for durable goods we're talking things like Cars, trucks and their associated parts..

With a 20% or more tariff this particular instance tariff's could work to our benefit. At 20% it MAY be worthwhile for American Manufacturers to move back to the US..

If I was a Mayor of a major city, or a governor of state like Maryland I think I'd be talking to GM and Ford NOW about tax breaks and incentives for when they do move to move here.

Not only do they save themselves from the 20% tariff, but also get to enjoy a 10 year tax break from the state.. maybe even Federal if Trump gets his admin involved at that level.

I bet we see many more industries moving to the likes of SC and FL the next 2 or 3 years.. while states like CA sit and bitch about how unfair that all the jobs are going somewhere else.

Can't do much about perishable goods, or beer, but durable good..
 
SamSpade

SamSpade

Well-Known Member
Kev_Russell said:
Manufacturing as it existed up through the 1950s or so will *never* return to the U.S.
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But it does VERY WELL in technologically advanced nations like Germany, Japan and China - because we're moving to automation.
Projections show us overtaking China - in three years.

Yes, they can come back, but - you're not getting a manufacturing job without any skills. Those aren't really coming back anywhere.
 
K

Kev_Russell

New Member
SamSpade said:
But it does VERY WELL in technologically advanced nations like Germany, Japan and China - because we're moving to automation.
Projections show us overtaking China - in three years.
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In the case of Germany, at least, they recognized that highly technical educations would be required to drive the sort of manufacturing base they envisaged after the fall of the Berlin Wall -- machinery, automobiles, chemicals, etc. AND they made an explicit decision to run their government education system as a public good so that the workforce would be ready. Combine that with Chancellor Schroeder's reforms which addressed falling employment, investment, and general economic growth. At the same time, however, falling birthrates had some negative effect, which is why grandma Merkel wanted immigrants. Time will tell how that works out, since high technical skill is required in their modern manufacturing economy.

The U.S., OTOH, has been asleep at the wheel with respect to re-tooling the workforce's skill sets to be able to adapt to the burgeoning knowledge economy. Manufacturing at scale is dead in this country. It ain't coming back.

I doubt we'll overtake China primarily because they continue to kick our asses at education.
 
Larry Gude

Larry Gude

Strung Out
itsbob said:
I would normally agree with this assumption, but this isn't China, and this isn't Europe. We're not talking Chinese Steel, but for durable goods we're talking things like Cars, trucks and their associated parts..

With a 20% or more tariff this particular instance tariff's could work to our benefit. At 20% it MAY be worthwhile for American Manufacturers to move back to the US..

If I was a Mayor of a major city, or a governor of state like Maryland I think I'd be talking to GM and Ford NOW about tax breaks and incentives for when they do move to move here.

Not only do they save themselves from the 20% tariff, but also get to enjoy a 10 year tax break from the state.. maybe even Federal if Trump gets his admin involved at that level.

I bet we see many more industries moving to the likes of SC and FL the next 2 or 3 years.. while states like CA sit and bitch about how unfair that all the jobs are going somewhere else.

Can't do much about perishable goods, or beer, but durable good..
Click to expand...

Where's the freaking 'like' button?
 
GURPS

GURPS

INGSOC
PREMO Member
Kev_Russell said:
The U.S., OTOH, has been asleep at the wheel with respect to re-tooling the workforce's skill sets to be able to adapt to the burgeoning knowledge economy.
Click to expand...



yes thanks Educators ....
Go to College, get degrees in [insert fav. progressive social justice warrior program]
 
SamSpade

SamSpade

Well-Known Member
GURPS said:
yes thanks Educators ....
Go to College, get degrees in [insert fav. progressive social justice warrior program]
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But retaking the mantle of manufacturing primacy was only taken by China in the last few years - and largely because - we ceded it to them.
We HAVE learned our lesson, and it is true we won't retake it by pumping out cheap labor and handmade products.

But automation and machinery is getting better and eventually - like a lot of automated factories - the human job will be remarkably simple.
 
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