The trade and economy mega-thread (8 Viewers)

[superchuck500]

Is there a trade deal with China? Is it really a deal or just a pull-back to status quo ante? Is Trump advancing US interests in this well-executed trade battle plan or was this poorly conceived from the start . . . and harmful?

I think the jury's still out, but I haven't seen that the Chinese are offering much in compromise - and it's not even clear if there's going to be an agreement. But it's clear they are working on something and I'm sure Trump will sell it as the greatest trade deal ever. The proof will be in the details.

 

[superchuck500]

I don’t remember him ever mentioning this “pain but good pain” plan of his in the campaign.

 

[efil4]

I don’t remember him ever mentioning this “pain but good pain” plan of his in the campaign.

Elon did.

 

[superchuck500]

Elon did.

I don’t remember Elon running for president

 

[efil4]

Yeah, I don’t think I will ever understand why he turned on Canada so hard. I mean, Mexico I get the motivation. But Canada? Who we do need to buy things from, no matter what the idiot says.

He thinks that by making Canadian lumber more expensive, that US based mills will expand/ramp up production, which will cost way more than the 25% tariff, not to mention payroll to man the mill, and will spit out as much lumber as Canada in 12 months.

We don't have the raw material nor infrastructure to get this done. Not to mention the capital it will cost lumber companies to invest in new equipment and manpower.

Further, if interest rates rise as a result, demand slows. If demand slows, there is no need to have added $10mm (or whatever the capital expenditures it will cost to meet what he envisions) in debt to ramp up production where there is no demand.

 

[efil4]

I don’t remember Elon running for president

Elon does. And thanked evry one with a sieg heil.

 

[Neworleansfan]

Yeah, I don’t think I will ever understand why he turned on Canada so hard. I mean, Mexico I get the motivation. But Canada? Who we do need to buy things from, no matter what the idiot says.

It’s a test run to see if they can replace income taxes with tariffs.

 

[superchuck500]

 

[MT15]

Elon does. And thanked evry one with a sieg heil.

It was the best money he ever spent to win the presidency.

 

[MT15]

It’s a test run to see if they can replace income taxes with tariffs.

So basically a sort of national sales tax which will screw the lower and middle income folks?

 

[Neworleansfan]

So basically a sort of national sales tax which will screw the lower and middle income folks?

Yes but without using the word “tax”. They still have to be voted in.

 

[wardorican]

Trump really believes this

Well, duh. Income tax didn't exist prior to 1913.

All this shows is that once income tax became a thing, tarrifs barely account for any of the USGs receipts.

 

[MT15]

Yes but without using the word “tax”. They still have to be voted in.

If people fall for this, we deserve it. Rank stupidity.

 

[DaveXA]

So basically a sort of national sales tax which will screw the lower and middle income folks?

More like a flat tax.

 

[Neworleansfan]

More like a flat tax.

It’s a lot worse than flat tax.

 

[wardorican]

Why is he sounding like Putin on Crimea?

 

[DaveXA]

It’s a lot worse than flat tax.

For the economy yeah, but for impact on the classes within the country, it's similarly regressive.

 

[wardorican]

What about the retirees on social security?

 

[Neworleansfan]

For the economy yeah, but for impact on the classes within the country, it's similarly regressive.

If a flat tax rate is set at 20%, a family making 50,000 will pay 10,000. A family making 500,000 will pay 100,000.
With tariffs, if a family making 50,000 is paying an extra 10,000, that is 20% of their income. A family making 500,000 and paying 10,000 will only use 2% of their income.