DeadlyAztec11
9711
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Posted - 2016.11.09 17:44:00 -
[2] - Quote
One Eyed King wrote:
Almost every reason for voting Trump was ridiculous. Now we will see how this pans out.
You know if he believed in free trade and getting rid of government mandated cartels then I could let a lot of things slide.
Yet he's talking about getting rid of NAFTA and placing tariffs... Did this guy ever take a basic economics course?
IMPORTS ARE ALWAYS GOOD!
Tell me, how many of you have ever told someone, "I'm not buying that unless you raise the price?". That's what tariffs do: they restrict trade. A key rule in economics is that the cost always falls on consumers.
Did you know that when China and Germany started making more steel than the U.S. (thereby lowering the price globally) the U.S. government put up tariffs and fixed the price of steel?
"But DeadlyAztec11, that saved the jobs of steel workers!"
Yeah, and who paid the price of that artificially high price? CONSUMERS! Particularly, the biggest user of steel domestically, the automobile market was decimated, absolutely savaged. Close to five workers in the U.S. lost their jobs due to price fixing per steel worker that kept their job.
Simply put, industries that relied on domestic steel to produce their goods had to start paying higher prices for both domestic steel and foreign steel. This means that they could no longer compete against other car companies in the world. The entire world was paying less for the same amount of steel.
What did the car industry do? They started sending companies over seas! The government played it's own economy.
My economics professor has a phrase for such phenomenon, "Stupid on stilts with flashing neon lights."
So the one thing Trump could actually fix is the one thing he wants to double down on. If people thought Obama was socialist then you have no idea. If we put up tariffs and get rid of free trade deals then you can expect industries to keep leaving, people will continue losing jobs and prices will definitely go up.
Some jobs are lost through regular market forces. Trying to force them to stay through price controls is simply ignorance. It doesn't work, period.
Put your flags up in the sky.
And wave them side to side.
Show the world where you're from.
Show the world we are one.
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