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Monumental greed is usually what drives companies to lobby for tariffs.
Lots of historical analysis, discussions, economic theories, etc. out there on tariffs. This isn't someone spouting off some mumbo jumbo.
Very difficult to find support of tariffs.....
I'm not debating the reasons for tariffs. I'm specifically debating the failed logic of those who think that companies don't seek to undercut their competitors. Why wouldn't they do that? How do you do that? With reduced costs. If the steel industry are greedy and **** up an opportunity to undercut their competitors, that's not Trump's fault. Period. Full stop.
Then that means you agree with me. If they ****ed it up, that's not Trump's fault.
If you found out your competitor's prices were just jacked up by 15% and there was nothing they could do about it, would you just sit there and leave your own prices unchanged?
Actually it's a simple-minded and overtly dumb response. It's almost as if you folks don't understand what competition is? It makes zero economic sense to not take advantage of the being the entity that can provide something cheaper than your competitors. For your logic to hold up, we'd have to assume monumental greed on the part of the domestic steel companies, which means we have no reason to care if they go out of business. They were handed a tool to beat the competition and they screwed it up. Why should we care about that? We shouldn't. And it certainly isn't Trump's fault.
You're actually making a very good argument AGAINST the tariffs. You don't get fiddle with the economy and then hope that companies don't act rationally in response to the changes.
Actually it's a simple-minded and overtly dumb response. It's almost as if you folks don't understand what competition is? It makes zero economic sense to not take advantage of the being the entity that can provide something cheaper than your competitors. For your logic to hold up, we'd have to assume monumental greed on the part of the domestic steel companies, which means we have no reason to care if they go out of business. They were handed a tool to beat the competition and they screwed it up. Why should we care about that? We shouldn't. And it certainly isn't Trump's fault.
No, it is Econ 101. Something that you obviously never had.
A corporation exists to increase shareholder wealth. This means charging what the market will bear. When supply drops and demand remains constant prices rise.
Of course demand will be affected negatively as economic activity decreases. Really bad news for the economy.
I suggest googling Milton Friedman the case for free trade.
The reason we care is because they employ people. That's the point of the article--higher costs mean companies cannot employ as many people and still make a profit.
Economics is complicated and you can't change A without thinking about how it's going to affect B, C, D, E, and F.
Another thing to think about is that if rising prices affect productivity, it will have lessen any possible positive effect of the recent tax reform. Remember how the selling point was that even though tax rates are lowered, increases in productivity would offset them? If productivity decreases on top of the tax cuts, then the only thing that will have is we'll have decreased revenue overall.
THERE IS NO HIGHER COST TO DOMESTIC STEEL COMPANIES FOR TARIFFS IMPOSED ON FOREIGN IMPORTS.
Not sure why you folks have a hard time with this.
No, it is Econ 101. Something that you obviously never had.
A corporation exists to increase shareholder wealth. This means charging what the market will bear. When supply drops and demand remains constant prices rise.
Of course demand will be affected negatively as economic activity decreases. Really bad news for the economy.
I suggest googling Milton Friedman the case for free trade.
Oh, god. Now the new crutch is Wall Street. I should have guessed that would be the next argument. For someone who keeps blabbering about Econ 101 you sure do seem to have a real problem understanding competition, volume, supply, and demand. Prices do not exist in a vacuum. And neither do costs.
I'm not debating the reasons for tariffs. I'm specifically debating the failed logic of those who think that companies don't seek to undercut their competitors. How do you do that? With reduced costs. If the steel industry are greedy and **** up an opportunity to undercut their competitors, that's not Trump's fault. Period. Full stop.
They may undercut their competitors....but they just barely undercut.
So say a price is now 10.00/unit.
The new tariff makes the imported price $12.50 unit.
The domestic producer isn't going to leave it at 10.00 -- historically they will move it up to $11.00/unit. Still under the import price but more than it was.
You are right it isn't Trump's fault.
But all the historical analysis of tariffs over the years has shown, the eventual outcome is higher prices for everyone.
Companies maximize profit anyway they can. It isn't Trump's fault but Trump's tariffs will result in companies taking advantage of raising their prices -- most likely based on historical evidence of tariffs.
THERE IS NO HIGHER COST TO DOMESTIC STEEL COMPANIES FOR TARIFFS IMPOSED ON FOREIGN IMPORTS.
Not sure why you folks have a hard time with this.
That's right domestic steel companies don't have higher prices but they will raise their prices. The whole point of a tariff is because a domestic producer can't compete at the going price.....so they have to price the competitors out of the market. Right now cheaper steel is available and USA steel companies can't compete with them so they asked Trump to raise the base level for imports. That means prices will rise .....it just will.
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