Alright you economically illiterate faggots let me educate your lowly primate brains a bit.
A tariff. Who pays it?
The customer ALWAYS covers the tariff cost no matter what. It functions similarly to VAT in external trade. What Trump is doing is literally raising the VAT equivalent cost of foreign goods from Mexico and American consumer will pay for it. Not Mexico, you yanks. Pena is already hardballing Trump because he knows how increased prices look on consumer side. American monkey see high price, American monkey mad at da prez.
This idea is to incentivize bringing those manufacturing jobs here so you aren't hit with the tariff. More goods in American stores made by American workers being paid American wages means prices were going to go up for one reason or another, but that's fine because so will wages, if this works and I'd much rather have to buy only what I need than be jobless and can't afford 50 cent sun glasses.
Xavier Sullivan
checked
Benjamin Murphy
Tariffs raise prices, but they also create jobs and raise wages.
So, for example, if Trump's putting tariffs on cars, that's a good thing because I care about the person making the cars more than the people buying them.
Matthew Robinson
The poor and middle class have been utterly shafted by outsourcing. Only an ignorant fool can deny this.
Andrew Jackson
yeah, yeah, yeah.
There's still the argument to be made for protectionism if the producer surplus raised from the tariff (since buyers of foreign brands will start to buy local) is greater than the deficit incurred by the consumer through the tariff.
Benjamin Stewart
kek vult
Brody Anderson
OP was right, most of you ARE economically illiterate.
Elijah Martin
Yes you smug fucking retard, but the point of the exercise is that them selling less hurts them more than us buying less.
Do you get it now?
Jace Jackson
oy vey Chinese tires are $30 more expensive it's anudda shoah
Oy vey buying a slightly more expensive American product is anudda shoah
Remember it's always (((you know who))) who hates economic nationalism
Thomas King
>The customer ALWAYS covers the tariff cost no matter what. Even if they choose to buy the product from another country? Didn't think so.
Hunter Cook
Explain it all to me like I'm a mentally handicapped 11 year old please
Ethan Gray
instead of buying mexican, people will buy american and the american economy will become more self sufficient
that is the free market
dipshit
Aiden Morales
Okay, then prove us wrong.
Colton Murphy
Tax's are covered equally by both parties. It's a hit I'm willing to take, fuck Mexico.
Joseph Lopez
You dumb dumb, do you not realize all the Trump supporters are boycotting all Mexican products and we are making the shitlibs pay for the wall?
lol. Learn to play 3d chess for godsakes. The dumb shitlibs will buy all the avacado's to "show solidarity with mexico" and pay for it themselves.
Not a dime will come out of Trump supporters pockets. That has been the plan all along. Lurk Moar
Lincoln Cook
You got a rebuttal?
Oliver Nelson
*leans in to mic* wrong
Isaiah Adams
Agreed.
Murray agrees too.
Mason Sanchez
I've worked in a grocery store, veggies and fruits. If they would raise the price of only mexican avocados, we wouldn't even have them in our store because other avocados would be more profitable
Brayden Perry
How bout not buying garbage made in foreign lands.
Anthony Edwards
It will also incentivize consumers to avoid purchasing Mexican goods, making it even less lucrative to export jobs.
Ethan Diaz
Lol, you don't understand economics. No, the consumer does not pay 100%, ever. It all depends upon the elasticity of demand and price elasticity of supply. There are all kinds of substitute goods, Mexico suppliers will eat most of the tariff.
Owen Wright
The point is that when somebody goes to the store to buy something, if they see that the imported one is now more expensive than say, the one made in the US, they will buy the one from the US. Yes we know that it will raise the price of the good in general, but it incentivizes keeping businesses in the US
Leo Adams
Tariffs lead to inflated prices for taxed goods, but not to the same extent that they are taxed assuming there are other sources for that good (which there would be if you're creating tariffs).
Joseph King
He told Americans to buy american and hire americans. That shouldn't be hard to understand.
People are inherently jews though, they will still buy what's cheapest.
Easton Diaz
"The customer Always covers the tariff cost no matter what
>> Implying monopoly. >>Implying is applied to every similar product.
Aiden Gomez
>so will wages
I hope your digits are right.
But I doubt it
Alexander Scott
>Tariff is placed >Said to "pay for the wall" >Mexican Peso still falling >Media and free market crowd panic >muh guac bowls >People resort to other imported products or domestically produced products. >Mexican exports plummet >Peso still rolling down the hill >Mexican food become "luxury items" due to price, but don't live up to price >Sriracha overtakes Cholula and Valentina sauces >Media and Free Marketers keep panicking >Businesses from the U.S. cease operations in Mexico >Peso in freefall >Nieto blinks >"Ok, ok, Mexico will pay for the wall." >Agreement signed >Tariffs lifted >Everybody is happy
Ian Cooper
>not having faith in digits After all the beautiful chaos of last year, how you still lack faith?
Joseph Reed
>a socialist thinking that there is no competition on in the free market People will just buy another product.
David Long
Guys I'm sorry I didn't mean it ;__; I just want to suck Sup Forumsack dick and I'm sooo frustrated! ;__;
Jace Walker
That's nonsense.
The effect of a tarrif would change depending on the nature of the product in question, but seeing as Mexico exports mostly cheap shit that the US can get elsewhere, Mexican businesses will be forced to take a hit to their profits or be priced out of the market.
Those that can't or won't absorb the tarrif through lowering their profit margins will have to be either subsidized by the Mexican taxpayer, or try to sell at raised prices which will lower demand for their products, which will weaken the Peso against the Dollar, which will lower the Dollar-price for Mexican products, i.e. Make Mexico Pay For The Wall (and ruin their GPD in terms of PPP).
Carson Cook
Right so why not buy an American alternative instead of Mexican import that has to be sold higher to adjust for border tax, again?
Asher Taylor
> the customer always covers the tariff t. Economics 101 student with a B- average
Blake Russell
it'll have a larger impact on cost of living than on wages, and its going to hasten automation. its more likely that some of these things simply get produced somewhere else outside of the US.
Adrian Wood
Moron.
Gabriel Cooper
>"I was just pretending" >"look at my sad emotocons"
Blake Gray
>trade restrictions >the free market
you guys are full blown aids.
Ian Lopez
a customer only covers the cost of the tariff if the customer buys that product.
So don't buy shit from Mexico.
Parker Rodriguez
>>using inked cotton fiat to buy food that grows on trees, while arguing about your national security superiority.
yeah ok McPotato. enjoy your monoculture
Juan Nguyen
Happoubi Jin is such a good artist.
Nicholas Ramirez
These tarrifs are honestly ridiculous but they aren't going to be used to pay for the wall. It is simply a negotiation tactic. Mexico will fold since we can take the hit.
Tyler Bell
No one else realizes this is the most likely scenario?
Isaac Brown
its only produced in mexico because its cheaper tho. if the tariff causes production to shift somewhere more expensive than in mexico pre-tariff, then the impact of the tariff is still being absorbed. assuming these companies aren't just taking huge profits (they generally aren't), then the cost is absolutely going to be passed on.
Matthew Sullivan
OP BTFO ALSO PRAISE KEK
Carson Butler
lewd
Oliver Price
The customer does not always pay for the tariff cost you fucking retard. It depends on the competitors' prices
Nolan Rivera
this is the most likely outcome desu.
Aaron Reed
OP is illiterate for using fuckin investopedia and knowing shit about macro economics... When foreign prices go up, import goes down, BP curve will decrease combined with a 'higher than necessary' intrest rate gives you an inflow of foreign capital, combined with 'fixed' dollar exchange rate, allows you to drop your intrest rate resulting in lower budget deficit for the UBER high US gov. debt. Resulting in money for the wall...
Gavin Gomez
so you think there's another substitute for all of these goods that's essentially the same price as mexico's? they have a truly unique combination of proximity, cheap labor and agglomerations
Carson Sanchez
Protip: They can't.
Josiah Jones
What anime is that?
Charles White
GUYS IT WAS A PROVOCATION TO ATTRACT MALES!!!! Please!
Hunter Kelly
mexico isn't a big enough trading partner to have that much of an impact on our macro
Charles Walker
>finland >gonna educate me on economys AAHHHHHHHHHHHHHHHHHHHHHHAHAHAHAHAHAHAHAHAHAAAAAAAHAHAHAHA
Brody Perry
more jobs means more demand for workers wages are always better in that case
Jack Nelson
I am honestly quite amazed. I thought this was the same board that understood Obama was trying to make shit difficult for Trump with Russia and laughed when Russia made fun of Obama for throwing a gigantic hissy fit just before the New Year. Now Trump is employing a "don't blink" scenario and people argue over the most bullshit of short term effects, when in reality it's the same thing the US Congress does with its spending power to the other states (like the "legal drinking age to 21 for highway funding).
Ryder Kelly
>believing free trade works Economically illiterate moron
Cooper Lewis
Kobayashi-san Chi no Maid Dragon
James Gutierrez
China, India, several former Soviet States, Vietnam, SK and Japan are proof of this.
Mason Jenkins
>wages will go up >implying that money won't go to a small group of investors at the top >being naive enough to think a govt of billionaires will spread the wealth to the little guy American worker
Ian Roberts
Why do people like this cowtit bitch? She seems to be worst-girl tier so far.
Parker Robinson
All dragons are best girl.
Nathaniel Price
ohh its not even ecchi
Wyatt Ward
who cares? So the cost of our fruit goes up a bit? Whatever. Everything else will quickly move back to the usa if its cheaper. Mexio was never the maker of quality anything, just land we used to safe money because of taxes and regulations
Aiden Nguyen
sauce?
Mason Powell
see
Brody Ramirez
>people with this little knowledge of our trade relationship with mexico weigh in on this topic every day
Asher White
idiot. the company still has to compete meaning the customer won't cover the tarrif because the customer won't buy the products if they're too expensive.
basic fucking logic, kindegarten level.
John Reyes
Because she's a /ss/ cow-titted girl.
Wyatt Lee
go back to Sup Forums
Alexander Robinson
The "NAP is not broken if a mother starves her child to death, but that won't happen vecause she will sell it to a nice middle-class couple" guy? youtu.be/jcUZrDX5P7A
Cameron Gutierrez
You're an idiot who speaks only in basic bitch talking points.
A tariff collects revenue from spending rather than income, a common goal of the economic right. In effect, we're shifting the tax burden from producers onto the sort of people who buy cheap consumer products from Mexico. In other words, we're taxing nogs' welfare instead of whites' earnings. This sets a precedent. Furthermore, the tariff's here to stay - do you really think any politician will be able to justify discarding a huge source of revenue that many people believe is protecting them from unemployment? It'll remain in place long after the wall is up unless Mexico decides to bend over and shell out the money.
It also sets a trap for the media. The Founding Fathers were very clear about having tariffs be the primary means of collecting taxes, a fact that even the most mismanaged inner city schools manage to get across. When the media inevitably calls the move "unamerican" in an attempt to rewrite history, they discredit both the insult and themselves. Normalfags may even be encouraged to look up some other things. They might even look into other policies (((they))) attacked and discover that we aren't *really* a nation of immigrants, and that Jefferson was even suspicious of letting in Germans.
Finally, America is responsible for 75% of Mexico's exports. This will hurt them badly. Mexico's government has been uppity enough to use us as a dumping ground for their undesirables without fear of consequence. This ends now, and the fear the tariff creates will see to it that they do not attempt to mess with our elections again.
Alexander Johnson
>123123 Neat!
If you know so much, enlighten us.
Kayden Sanchez
>OP was right, most of you ARE economically illiterate. No they just don't think that companies making shit tons of money is a good thing. So long as those companies aren't reinvesting in the United States of America. Fuck your globalist bullshit. If the higher prices make people stop buying shit from Mexico? Good. If Mexico burns down and becomes even shittier than it is now? Good.
Austin Watson
>Mexican Peso still falling
Except it isn't anymore.
Leo Morales
No shithead, the importer pays the piece. The importer then has to raise the price of the product to cover it.
That hurts foreign importers, because their products are less competitively priced. That helps domestic American companies. It doesn't help the consumer in the short run, but our not planning things out for the long run is what got us into this shit economic situation (very few entry level jobs are left for the American lower class and young workers temporarily entering the low end job market).
We have to plan out what's best for us on the long term, what happened to sustainability? The left just tosses that out when it suddenly doesn't benefit their brown pets?
Jack Harris
good place to start would be to google the largest import categories. agricultural goods aren't even close to the largest.
Kevin Howard
Tariffs are made for protectionism, you discourage the population from buying stuff your enemy produces by making that stuff artificially expensive This makes your local produced stuff have easier environment Dont you mongoloid understand such basic stuff or did koskenkorva took its toll on you already
Brayden James
>foreign importers >raising prices permanently is only a short-term effect for consumers
Gabriel Price
>Buying into the Jewconomics meme
Fuck off Rothbard. Nationalism is protectionism.
Get gassed kike shills.
Charles Brown
Yeah I don't think that was a simple enough idea to greentext. Care to actually make a statement/explanation?
Blake Long
That's cool, but since you are the one who made the claim that I'm ignorant, the onus is on you to provide the explanation, not just to say "google it" like this is Tumblr or something.
John Kelly
Fuck you guys stop replying...
Nathaniel Wilson
I'm gonna post until bump-limit just to spite you
Jaxson Cook
Yes, the customer pays the tariff if the customer keeps buying an exported good however, the U.S is very large with almost all resource availability it could ever need. Puerto Rico and its failing economy would be boosted by producing real cane sugar locally to avoid competing with places like Brazil which would be knocked by the tariff.
James Long
If Americans can sell avocados on the American market for $1.10 per avocado, but Mexico sells avocados to us for $1.00 per avocado (pre-tariff), then the U.S. avocado growers will go out of business because they can't compete. However, if a 20% tax on Mexican goods were passed, then Mexican avocados would cost $1.20 per avocado, pushing customers to the American produce. So, no, Americans are not paying any tax, they are being incentivized to buy American.
Asher Sullivan
I think you got most of that right, except the idea that tariffs are generally good for the domestic production. They may benefit the producers of the particular good in the short run, but limiting free trade is worse for everyone in the long term. All of America is losing access to the best goods for the best prices because Mexico can produce the products for cheaper, so ultimatley everyone benifits from that trade. Government interference in the economy doesn't become a good thing just because a Reblpublican is doing it. The wall is good, but making Mexico pay for it is unnecessary and wastes time for the sole purpose of protecting Trumps ego.
Nolan Wood
Prices are high in the short term, but I am sure Trump/Congress are gonna give all the signs for business to shift to accommodate it before it is passed. Trumps already railing at auto companies. If they dont listen to the market forces, they weren't good at their business anyways and deserve to collapse.
Lincoln Sanchez
Guys, I really, really want to know where that ass comes from.
Ethan Powell
Economist here, protectionism has worked in the past, but has also been wrong, depending on the country, industry and decade.
I'm kinda interested how this is gonna turn out desu. Looks promising atm
Josiah Allen
see
Jason Lopez
I told you what to Google, I'm correct, and I'm not going to dig up a link for you. Dgaf about onus.
Ian Bell
>My hypothetical based on fake numbers in a simple system is a reliable model for a complex real-world economy
Lol kys idiot
Julian Jones
A tariff is a tool that only an idiot would look at in isolation. So fuck off and read a damn book.
Dylan Nguyen
Protectionism works as part of a long term plan to establish agglomerations or launch target industries. In a global economy, simply protecting an inefficient workforce indefinitely isn't a strong long term strategy.