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A 30% tax on anything foreign made? That's pretty scary from a consumer's point of view since companies would probably just pass along that cost of production to consumers.
What you fail to understand is businesses are at the mercy of the consumer in a free market environment where competition exist. Consumers choose what products they want to buy based a value and quality.
Ford, GMC, Chevy, Dodge, etc. all compete with each other for market share. Ford wants to move to Mexico to increase their profits while stripping Americans of such jobs.
To force Ford to stay in the U.S. and hire Americans, Trump will impose a 30% tax on every Ford car coming into the U.S. if Ford dares to move to Mexico, offsetting any profits they would stand to make with the move to Mexico.
Now, if Ford despite the 30% tax on every car decides to still stay in Mexico, Ford would basically have to increase the price of their cars by 30%.
Unless you're a loyal die hard Ford car lover, no consumer will opt to over pay for a car when you have other American made car companies at a lower price point.
So its a weak argument to say that the consumer will suffer from sticker shock and be forced to pay inflated prices when you have other car makers with lower price points.
Ford will have no choice but to abandon its plan to move to Mexico and American jobs will be saved as a result.
The Washington establishment is pro-out sourcing and globalization. Trump is pro-America and putting America and its citizen's first. This is why Trump has a huge following.
So then I guess you're ok having American jobs being shipped overseas?
Given the choice between manufacturing jobs being shipped overseas or paying 30% extra for goods, I will choose the former. How many products that we use everyday are currently manufactured entirely in the US? Very few. Everything else will see a price increase.
So the answer to your question is yes, I am okay with the current trend continuing. It's economically more efficient.
What you fail to understand is businesses are at the mercy of the consumer in a free market environment where competition exist. Consumers choose what products they want to buy based a value and quality.
Ford, GMC, Chevy, Dodge, etc. all compete with each other for market share. Ford wants to move to Mexico to increase their profits while stripping Americans of such jobs.
To force Ford to stay in the U.S. and hire Americans, Trump will impose a 30% tax on every Ford car coming into the U.S. if Ford dares to move to Mexico, offsetting any profits they would stand to make with the move to Mexico.
Now, if Ford despite the 30% tax on every car decides to still stay in Mexico, Ford would basically have to increase the price of their cars by 30%.
Unless you're a loyal die hard Ford car lover, no consumer will opt to over pay for a car when you have other American made car companies at a lower price point.
So its a weak argument to say that the consumer will suffer from sticker shock and be forced to pay inflated prices when you have other car makers with lower price points.
Ford will have no choice but to abandon its plan to move to Mexico and American jobs will be saved as a result.
The Washington establishment is pro-out sourcing and globalization. Trump is pro-America and putting America and its citizen's first. This is why Trump has a huge following.
What's to stop American companies from raising their prices? If I had a lemonade stand that made fresh lemonade and my competitor across the street imports his lemondade from a store, he's have a lower production cost. If he is taxed for not squeezing his own lemonade and had to charge $3 a cup instead of $1, why would i not raise my prices from $1.50 to $2.75? Why would i keep my prices the same?
Lol people wont stop buying American goods that are made in foreign lands, especially folks with money including liberals. What about folks who are not wealthy enough to afford overly taxed American products? What will happen if folks have to buy increased for American goods? American folks will start buying foreign goods in general over American products made oversees. What should happen is for citizens to boycott American made products oversees so that business can start loosing money. THis would force business to change their business tactics and move assembly production back to stateside.
That boycott would involve pretty much everything we use. People naturally do things to further their self-interest. We'd have to convince everybody to pay more for the same products, which is tough to do, especially for those who work in service industries.
I just saw her on TV today criticizing him because he is actually looking for a solution to our unlawful influx of illegal invaders. She was laughing that he was going to try to do something about the 11 MILLION invaders to this country. Does she not realize that her saying things like this just encourages more people to break our laws? And she calls him a live cannon. At least he is not making treasonous statements.
No one who chooses to ignore our nation being invaded hostilely should ever have access to the White House.
Maybe if she had more respect for our nations laws she would realize that she also should be looking for a way to rid us of illegals. And no I am NOT talking about amnesty. That should never have happened in the first place.
Sounds like you know this but, just to be clear -- Hillary stands with the illegals over US Citizens 100% of the time.
Say what you will about Trump, it's hard to say that about him.
Given the choice between manufacturing jobs being shipped overseas or paying 30% extra for goods, I will choose the former. How many products that we use everyday are currently manufactured entirely in the US? Very few. Everything else will see a price increase.
So the answer to your question is yes, I am okay with the current trend continuing. It's economically more efficient.
I hope YOUR job gets shipped overseas. I bet you'd be singing a new tune then.
I hope YOUR job gets shipped overseas. I bet you'd be singing a new tune then.
If that was the case, then I would benefit from a tariff so of course I would support it. But for my situation, it would only hurt me so why would i vote for somebody who wants to make my life more difficult? Do you pay more taxes than you have to? I dont. I pay only what's required.
I hope YOUR job gets shipped overseas. I bet you'd be singing a new tune then.
I support jobs staying here but not by government force. That is no less authoritarian and insane than the left's economic policy of ever increasing taxes and regulations that ship job overseas and needing to change the rules for inversion to make it impossible for companies to reincorporate overseas.
The solution is to make America a better place for business -- lower taxes, simples taxes, fewer regulations (esp EPA), etc. Don't see it happening but this is the approach to take.
The US has utilized tariffs throughout history to protect it's own interest. This isn't new, and they are never permanent. They are policies utilized to correct global imbalances. The US has also devalued the dollar itself to help US exporters. All this isn't new.
in the 90's, the US had signed bad international trade deals and there was concerted effort by the PBoC to devalue the Yuan to the US dollar. Not only the Chinese, but the rest of the world devalued to the dollar, Japan, Italy, Spain, Mexico, Germany, everyone at the expense of the US manufacturer and exporter. The smarties here in the US recognized what arbitrage could be captured via low cost, higher margins and leveraging consumer debt by selling within a deflationary environment and shipped all manufacturing jobs abroad to slave-like chinese labor. who suffers the most, the US middle class. what they did was completely legal too, and falling prices in consumer goods may seem good, things are cheaper, but there is never such thing as good deflation in the long run when jobs are lost. currently, the employment participation rate in the US is the lowest in HISTORY.
that being said, consumer debt had skyrocketed into the last financial crisis, and we all know how that ended. ZIRP by the central banks bailed out the 1% and the wealth divide continues.
those who support current trade policies are basically supporting further wealth divide and continuing export of US jobs. those who support the current system support oligarchy and oligopolies. essentially, there are no anti trust laws, there are no more checks and balances and regulation. they've all been paid off..
and it's not just manufacturing jobs at stake, high paying service jobs are being transfered over to foreign countries. it was china in the past 20 years, it'll be india and africa next and US middle class pays for it. an iphone can be a few hundred dollars vs $1000 but it doesn't matter when people need to get into debt to purchase it. must have been a nice ride for the chinese. china has amassed the most billionaires and most millionaires in the world during this same period with virtually no unemployment.
Last edited by ControlJohnsons; 06-05-2016 at 05:20 PM..
Get ready to pay for a 4000 dollar mac book, or the cheapest iPhone will cost thousand dollars. But don't worry liberal will still buy it. Trump will destroy the consumer base overnight. However it wont happen. Charging 30% tax or a 30% tariff on American companies is illegal and it has to go through congress first which would be out right rejected.
the difference is this. in the 80's and early 90's, a macbook or the prevalent laptop of it's time cost $4000 but the american middle class had higher aggregate non-debt purchasing power and much higher employment participation and therefore, savings. in the 90's, US GDP ran at 4-6% per annum. we'd be lucky to hit 2% these days.
basically, middle class americans were buying a $4k product in CASH with a $200k bank account, vs today where americans are buying a $600 iphone via debt with nothing in the bank until the next paycheck. this revolves until the next recession which now always leads to debt crisis and happens every 7-8 years or so. recessions used to just be recessions.. now they're full blown panics and crashes.
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