Message from @Dr.Wol
Discord ID: 449556117169766430
theyll not be like them belgian blue's eh?
but selling is not the problem, its buying. Tariffs raise the price of goods from china. china can't sell those things as easily, so they need to sell elsewhere, presumably where they were not making as much money. so they raise prices there. which if they were selling to russia, means now prices in russia are raising.
yes, and hence, they're calling for no more trade wars, so that doesn't go up
exactly. we impose tariffs, so prices raise EVERYWHERE
including here
wait wait wait....does this mean trump is technically winning his trade war?
well, the idea is
That if the prices in US are higher, some company will rise to fill the market with a better price, so the production is based in America, and prices no longer rise in the US
as well as more jerbs
thats not how it works
or, both sides then agree to drop tariffs again, so that the US can export more
Cuz as i understand it, the US demanded 0 tariffs, but China did demand it
it isnt?
if you could make enough steel, at the same or lower price as foreign imports, then they would be. Because just the cost of shipping means local industry should have advantage assuming they can go toe to toe in production volume at the same cost.
ive only seen good vibes and words spoken about TB on twitter and in twitch chat... which the latter is a real rare one
TB left us without an answer to the Trap question!
so if you artificially raise the cost of foreign imports of that steel, prices can only raise for a few reasons 1) at first there is less supply at that lower costs at first, so we have price increases almost like there was a shortage until the lowest cost produces increase production to take up the slack. Which can take a couple of years. but even then, the prices will not fall back to before the tariff.
whats worse, if you ever lift the tariff, then suddenly those produces who just increased production are now having less demand, because they are expensive now. so now they need to downside, which leads to a bunch of people getting fired, now they need to find work, and they might not have the skill set
the only thing that happens when you are winning a trade war is that your costs increase **the least**
but they do increase
yes
thats more detailed of what i said wasnt it?
at the cost of your own people
yes
thats why its a tariff WAR
the price of things doesn't mean its more valuable, it just means you need more of your currency to buy it. so in effect, all you do is devalue your own currency
a war that has a high risk of destroying your own local industry.
unlike a real war where you can just bomb the enemy production and defend yourself physically.
well i think the idea behind this one is that the local industry is non-existant because they all moved to cheaper nations for production
and they moved for a reason
yes, because it was more profitable
so with no local industry (cuz they moved), i think that way Trump is either gonna get a better deal for america, or force a local industry to be created
it was cheaper to make, meaning they can sell for less, meaning more people buy. meaning they make more profit. that is a net benefit for everyone involved. Because if we are importing that good, it means moved from making that product, to consuming it to make a different product.
so by that being made cheaper elsewhere, those industries that use it, can product their stuff for cheaper, meaning they get more profit with cheaper product, meaning they can expand, and we get more jobs
but they expand, in those countries
we don't get more pleb jobs, because those are done in those pleb nations
so, we have two people, 1 has a pleb job and can feed their family. the other doesn't have a job. the solution tariffs offer is to basically cut persons 1 pay in half, and give it to person 2. so now person 1 can't afford to keep his family afloat. so now he needs a second job, and person 2 still doesn't make enough to live, so he might as well not have a job.
because the actual value of these products does not change, just how much of your currency it takes to buy it.
so your currency is now worth less, because you can get less with it
yeah but before those tarifs, there were 0 pleb jobs, so neither got to work
in this scenario
okay, so they both still don't make enough to live.