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Old Today, 08:49 AM
 
15,882 posts, read 4,194,571 times
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The very same people who tell us $1 an hour more in employee wages COSTS the consumer big time now tell us they don't.

You couldn't make this stuff up...but yet, here are the same folks claiming that massive costs aren't passed on.
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Old Today, 08:49 AM
 
23,627 posts, read 12,471,766 times
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AND Trump is not accurate and purposely misleading voters saying China is paying the tariffs -- and it is a windfall for the govt.

If the tariff costs have yet to be passed on to the consumer, that tax is being paid by the importers -- not necessarily the Chinese companies and definitely not the Chinese govt.
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Old Today, 09:10 AM
 
37,550 posts, read 16,286,904 times
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Quote:
Originally Posted by moneill View Post
https://www.cnbc.com/2019/05/13/this...get-worse.html
The tariffs enacted so far in the trade battle with China have already raised the prices of goods in affected industries much more than the overall rate of inflation, made clearly visible in this chart from Goldman Sachs.
If NBC says it, it MUST be true. They would NEVER distort the facts!
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Old Today, 09:12 AM
 
37,550 posts, read 16,286,904 times
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Quote:
Originally Posted by craigiri View Post
The very same people who tell us $1 an hour more in employee wages COSTS the consumer big time now tell us they don't.

You couldn't make this stuff up...but yet, here are the same folks claiming that massive costs aren't passed on.
"he very same people who tell us" probably NEVER ran a successful business but, are EXPERTS.
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Old Today, 09:13 AM
 
Location: Newport Beach, California
33,476 posts, read 20,276,010 times
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So we have no choice but to keep on buying made in China goods?

Please..
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Old Today, 09:17 AM
 
8,964 posts, read 3,982,514 times
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Quote:
Originally Posted by moneill View Post
OP isn't thinking this through.

First and foremost, the importer pays the tariff -- ALWAYS.
Second, whether or not the added cost of is then passed on to consumers will not show up in the price of the import.

Simply put -- if a Chinese doll costs $2.00 to import and there is a tariff of 15 per cent on that doll. The importer pays 2.00 plus the 50 cents. for the doll....2.30.

Now if the price of that doll drops by one percent --- that doll price is now 1.98. Since then the US has tacked on 10 per cent more tariffs......so the tariff is 25 per cent now. The total cost of the doll is now around $2.47 (rounded down).

So China's price index is down by 1.6 per cent...but because the American govt. has imposed an increased TAX on the doll...it costs more for the importer.

So what if China is getting less money if we are paying more money.

AND we aren't reducing the amt. of goods being imported.
Tariffs here are essentially focused taxes. So importers absorb the difference or pass on the added cost to our consumers buying that product.

But it is not that simple dealing with China. Because with China's secretive central command, they can neutralize the added cost of their doing business in many ways. So China probably does pay some of the added cost with new central moneys. The related business or their people/taxpayers pay or feel much less of it.

https://www.truthdig.com/articles/ne...atch-in-china/


https://theweek.com/articles/771201/...ks-are-big-big
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Old Today, 09:24 AM
 
8,964 posts, read 3,982,514 times
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Quote:
Originally Posted by moneill View Post
AND Trump is not accurate and purposely misleading voters saying China is paying the tariffs -- and it is a windfall for the govt.

If the tariff costs have yet to be passed on to the consumer, that tax is being paid by the importers -- not necessarily the Chinese companies and definitely not the Chinese govt.
See my note, I do think the Chinese central command creates money in various ways to neutralize any added costs to businesses on their side.
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Old Today, 09:27 AM
 
8,964 posts, read 3,982,514 times
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Quote:
Originally Posted by moneill View Post
And Trump is right -- China needs to change how it does things.

Folks aren't disagreeing with the fact there are issues with China and its currency manipulation to control its exports.......

It is the methodology being used to negotiate with China and its effectiveness that is being questioned.

AND the false statements, misinformation that Trump has been giving with all the rants about trade and tariffs.

And remember a trade deficit is not necessarily a symptom of a bad economy. It's not that simple.
Or we change ours.

Who are we to dictate how China runs its country? Trade with China is optional.

The whole world would have to gang up on China, and that IMO would be very unlikely.

It may be the key though. Because agricultural imports above all are very dear to China.
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Old Today, 10:59 AM
 
1,782 posts, read 606,101 times
Reputation: 1367
Quote:
Originally Posted by craigiri View Post
The very same people who tell us $1 an hour more in employee wages COSTS the consumer big time now tell us they don't.

You couldn't make this stuff up...but yet, here are the same folks claiming that massive costs aren't passed on.
The economics of these situations is complex and no one knows who is a price setter and who is a price taker until the market shakes out for a while, and even then things can change.

I think the data presented are clear regarding tariffs, as well as recent wage gains outpacing inflation: costs are not being passed on to the consumer.
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Old Today, 11:03 AM
 
1,782 posts, read 606,101 times
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Quote:
Originally Posted by moneill View Post
No it is common business sense.

The tariffs become part of the cost of goods and the business that imports the goods will want to keep their profits steady.
.
That assumes:
1) the American businesses are not price takers. Debatable based on the market and company.
2) Chinese suppliers will not reduce their own costs to maintain volume of sales. Again, it depends on the market.

Instead of using "common sense" theory as a crutch (cudgel?), it's always better to actually measure what's going on. The OP supplied that data.
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