Fed study finds Trump tariffs backfired - MarketWatch
https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27
https://www.marketwatch.com/story/fed-study-finds-trump-tariffs-backfired-2019-12-27
Speaking of jobs
- Thread starter Watu3
- Start date
It’s a long term payback although it is nice to see progress. We’ve spent decades losing trade negotiations with China. Mostly because we far too concerned with short term losses while China has been willing to take positions with an eye on the future. We’re not going to substantially reverse anything overnight. Hopefully whoever is in the White House come 2021 will continue the current hard line with China on trade. It’s the only tactic which stands a chance for better trade deals.
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Except it might mean that we are worse off in the long run that if we had just allowed free trade.
https://fivethirtyeight.com/features/how-to-win-a-trade-war/
I’m a huge fan a free trade when the playing field is level. Let’s say company “A” produces a widget at a cost of $25 per unit. Company “B” produces the same widget at a cost of $100 per unit. It won’t be long before company “B” is out of business with company “A” controlling the market. Add to this scenario that company “A” has the backing and at times theft of technology from “B” by its federal government. Nice article but it omits perhaps the most important real world factors of what has been our relationship with China and its companies over the last 25 years.
The whole concept of free trade as beneficial is built on countries being good in different areas and taking advantage of competitive advantages to create a bigger economic pie.
If one country can produce something for $25 and another can only produce it for $100, then the higher cost country should shift its resources to Doing something more efficiently which benefits everyone. Why should US consumers pay 4x for a product? That’s protectionism at its worst.
The complaints about trade deficits have to do with claims about one country “cheating” with subsidies, currency manipulation, closed markets or IP theft which restrict the benefits of free trade.
Trump shares in this same misconception. Same for his understanding of trade deficits.
If one country can produce something for $25 and another can only produce it for $100, then the higher cost country should shift its resources to Doing something more efficiently which benefits everyone. Why should US consumers pay 4x for a product? That’s protectionism at its worst.
The complaints about trade deficits have to do with claims about one country “cheating” with subsidies, currency manipulation, closed markets or IP theft which restrict the benefits of free trade.
Trump shares in this same misconception. Same for his understanding of trade deficits.
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More efficient ? You serious with that line? What goods would you propose we could possibly produce at a lower cost than China when their labor and raw material cost are a fourth of ours? Please enlightened me....and be specific. Needs to be goods that we mass produce and can sell high quantities of to China
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