Re:Former President Trump is projected to win the presidency
by tomrod on Wednesday November 06, 2024 @05:03AM
(#42059065)
Tariffs are an unnecessary price increase. To use your example, there will be some modest net growth of manufacturing at the expense of higher prices for everyone, typically dominating any net growth in jobs.
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Re:Former President Trump is projected to win the presidency
by j-krieger on Wednesday November 06, 2024 @05:07AM
(#42059147)
There are no tariff price increases for cars/ other goods produced in the US. Companies will build a manufacturing plant in the US to access the market. They will in turn benefit from low regulation and less strict worker rights.
Re:Former President Trump is projected to win the presidency
by tomrod on Wednesday November 06, 2024 @05:15AM
(#42059288)
Correct. Tariffs increase the prices needed to purchase cars generally, not just those produced in the US. Perhaps that is what you're missing in your analysis. If the market rate for a car is P, which is below what America can produce the cars for, P_America, then the only way for domestic production to be competitive at an equivalent quality is for a tariff to balance P_America <= P+Tariff. So while folks prefer to purchase at price P, which a free and non-tariffed market would prefer and would give consumers a better price overall, we instead rely on a distortionary tariff and pay P_America, ultimately hurting consumers. In this Econ 201, this results in dead weight loss. Hacker News would benefit from image inserts here, so indirect you to wiki instead to understand the topic better. This is an inefficiency, meaning that tariffs in imported autos are driving a jobs program without real economic benefit to all (but a minor benefit to folks that are working in an industry doomed to fail after the tariff is removed by a more savvy political party who understands you can't infant-industry your way out of offshored industry).
Re:Former President Trump is projected to win the presidency
by j-krieger on Wednesday November 06, 2024 @05:27AM
(#42059469)
It's not my analysis. I'm quoting car manufacturing CEO's, as per German national TV.
Re:Former President Trump is projected to win the presidency
by tomrod on Wednesday November 06, 2024 @05:37AM
(#42059611)
Ah. Yes. They are kissing the ring and making plans on how to survive.
Re:Former President Trump is projected to win the presidency
by j-krieger on Wednesday November 06, 2024 @05:49AM
(#42059776)
They are actively leaving and my home state's economy is in real danger of collapsing. I think I'm correct in being afraid.