How Trump’s Tariffs Will Make Goods Cheaper

[endicom]

American Greatness
Spencer P. Morrison
Oct. 3, 2018

U.S. Commerce Secretary Wilbur Ross told CNBC last week that President Trump’s tariffs wouldn’t hurt American consumers, noting that because the price increase would be “spread over thousands and thousands of products, nobody’s going to actually notice it at the end of the day.”

Needless to say,  poor Ross was summarily tarred-and-feathered by “experts.” What doesn’t this kook understand? Tariffs are a tax, and taxes are always bad.

The logic seems straightforward enough: tariffs increase costs and these costs invariably get passed on to consumers. Thus, tariffs won’t punish China—they’ll punish American consumers. We will pay the price for Trump’s ignorant bravado.

But, as always, the “experts” are wrong. Tariffs will not hurt American consumers, they’ll actually make America richer in the long run.

More... https://amgreatness.com/2018/10/03/how-trumps-tariffs-will-make-goods-cheaper/

[thackney]

What a nut.  We won't notice the price increase because nearly everything will be going up in price?

[catfish1957]

What a nut.  We won't notice the price increase because nearly everything will be going up in price?

Kudlow really needs to be the one stop shop for any and all Trump Administration economic interviews or statements.

[Hoodat]

the price increase would be “spread over thousands and thousands of products, nobody’s going to actually notice it at the end of the day.”

A price increased unnoticed is still a price increase.

[endicom]

What a nut.  We won't notice the price increase because nearly everything will be going up in price?

Did you read it?

The tariff is insignificant to the purchaser of a product because the tariff is on the first sale price.

Cheaper, in the long run, because innovation makes it so and innovation is the provenance of the producing nation.

[Hoodat]

Cheaper, in the long run, because innovation makes it so and innovation is the provenance of the producing nation.

Tariffs do not encourage innovation.  They inhibit it.

[IsailedawayfromFR]

Did you read it?

The tariff is insignificant to the purchaser of a product because the tariff is on the first sale price.

Cheaper, in the long run, because innovation makes it so and innovation is the provenance of the producing nation.

I agree, it is a thought-provoking piece that requires someone to think it through rather than just reacting.

Tariffs are far worse for the foreign entity than they are for Americans.  And this article explains it well.

Those with the knee-jerk reactions look no further than the fake 'another tax' theory and not into the underlying rationale to place it there in the first place.

That rationale is long-term thinking, not short-term.

[endicom]

I agree, it is a thought-provoking piece that requires someone to think it through rather than just reacting.

Tariffs are far worse for the foreign entity than they are for Americans.  And this article explains it well.

Those with the knee-jerk reactions look no further than the fake 'another tax' theory and not into the underlying rationale to place it there in the first place.

That rationale is long-term thinking, not short-term.

A nation like the PRC can manipulate free trade to further its goals at the expense of the bulk of its people. The bulk of the Chinese people have probably improved their lot over the last few decades, under strict protectionist policies, but that's up from a state of slavery.

Free trade, like freedom in general, is an ideal never met in the real world.

[thackney]

Great minds from Plato to Adam Smith to Henry Ford recognized that one way to make more stuff is to divide our labor more efficiently. When people specialize in making only what they’re best at, and trade for what they’re not, they can make and consume more stuff overall.

From the article

Having the government get in the middle of this by raising taxes creates less efficiency, not more.

[Weird Tolkienish Figure]

Taxing our way to prosperity.