The trade and economy mega-thread (7 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.

 

[UriUT]

Tariffs will make imports more expensive, but they will also make our products more expensive. Our exports will tank. One of the tenets of free trade is that we would benefit from low wages overseas. The inputs to our products can be made more inexpensively elsewhere, while wholesale insourcing will raise prices. That’s bearable to a point, since it does create jobs, but Trump’s broad approach is destructive to our economy and standard of living. Here is an article that explains it in detail.

Tariffs—Everything you need to know but were afraid to ask

Updated March 7, 2025 to include the distribution of tariffs' costs to consumer purchasing power across states. This document will be periodically updated as new questions arise. During his presidential campaign, President Trump pledged to impose universal tariffs of 10–60% on all U.S...

www.epi.org

Right!!!!

Comparative advantage - Wikipedia

en.wikipedia.org

200+ years of economic theories and empirical data!!! How dumb are we to put this moron who's bankrupted everything including casinos!!! The last trade war with china cost us at least 0.5 % of gdp and jobs. Worse, the markets that were lost due to that trade war will not be regained as china moved to new suppliers. Anyway, the idea is that even if your country has comparative advantage in all industries, it is worth while to allocate that country's limited resources...ie labor to industries that is most efficient for that country and import for industries not allocated, thereby reducing prices on goods and raising standard of living. Tariffs are protective....you do this for industries that you want to keep just in case...for example for security reasons. However, without competition, that industry won't need to innovate. They'll charge more for goods...yeah raising prices along with high prices that the tariffs have on imported goods. Inflation!!!! This doesn't necessarily create new jobs...it for sure will shift some to otherwise obsolete industries.

For example, do any of us want to work textile???? Holy hell, that's an industry that was great 100 years ago???

 

[wardorican]

Y’all it’s okay because we’re reorienting to the private sector.

By private sector, they mean, take my money out of the economy and hold it in the privacy of my home.....

Like.. what did he even mean?

 

[UncleTrvlingJim]

One thing to keep in mind with tariffs is that while it's true we run a trade deficit on goods, we run a trade surplus on services, and services are significantly higher margin than goods. We're risking losing that surplus and having the world turn away from our tech sector over this trade war.

 

[efil4]

By private sector, they mean, take my money out of the economy and hold it in the privacy of my home.....

Like.. what did he even mean?

I know you meant that as tongue-in-cheek, but...


this is what he means- private equity.

Elliot Management took a massive position in SW ( $1.8B in stock ) in summer 2024 and proceeded to gut management and require changes to status-quo.

 

[superchuck500]

 

[DaveXA]

Well, it's obvious he doesn't give a sheet about American interests. MAGA?

 

[efil4]

im speechless.

 

[Neworleansfan]

Crazy.

 

[efil4]

Right!!!!

Comparative advantage - Wikipedia

en.wikipedia.org

200+ years of economic theories and empirical data!!! How dumb are we to put this moron who's bankrupted everything including casinos!!! The last trade war with china cost us at least 0.5 % of gdp and jobs. Worse, the markets that were lost due to that trade war will not be regained as china moved to new suppliers. Anyway, the idea is that even if your country has comparative advantage in all industries, it is worth while to allocate that country's limited resources...ie labor to industries that is most efficient for that country and import for industries not allocated, thereby reducing prices on goods and raising standard of living. Tariffs are protective....you do this for industries that you want to keep just in case...for example for security reasons. However, without competition, that industry won't need to innovate. They'll charge more for goods...yeah raising prices along with high prices that the tariffs have on imported goods. Inflation!!!! This doesn't necessarily create new jobs...it for sure will shift some to otherwise obsolete industries.

For example, do any of us want to work textile???? Holy hell, that's an industry that was great 100 years ago???

 

[efil4]

 

[UriUT]

great impressionable freshmen minds think alike

 

[longtime lurker]

How the US economy went from booming to a recession scare in only 20 days | CNN Business

Just 20 days ago, the US stock market was sitting at all-time highs. The US economy appeared to be growing at a solid pace. And a recession was nowhere in sight.

amp.cnn.com

 

[superchuck500]

This shirt is forking crazy

 

[DJ1BigTymer]

This shirt is forking crazy

This shirt is forking stupid!


...then there's this question:

 

[UriUT]

This shirt is forking stupid!


...then there's this question:

​

When Nikita Khrushchev was forced out as leader of the Soviet Union, he sat down and wrote two letters to his successor Leonid Brezhnev. He said, “When you get yourself into a situation you can’t get out of, open the first letter, and you’ll be safe. When you get yourself into another situation you can’t get out of, open the second letter”. Brezhnev soon found himself in a difficult situation, so he opened the first letter. It said, “Blame everything on me”. So he blamed Khrushchev for everything, and it worked. Eventually, he got himself into a second difficult situation he couldn’t get out of, so he opened the second letter. It said, “Sit down, and write two letters”.​

​

 

[MT15]

This shirt is forking crazy

Lying liar who lies.

 

[Optimus Prime]

This shirt is forking stupid!

 

[efil4]

This shirt is forking crazy

I replied to Aarons post 2 posts before this one - saying there wasnt a single soul in WH that understands economics and that the reporters question ( on tariff war with Canada ) may have well been in Chinese because her answer was misrerable.

This one solidifies it.