this post was submitted on 07 Nov 2024
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[–] TeamBrett@lemmy.world 0 points 1 month ago (1 children)

So I feel like I'm probably missing something or am not understanding how Tariffs work.

Tariffs would increase the price of foreign goods and commodities and those increases would be passed on to consumers, but isn't the goal not to get more tax money for the government but to disincentivize the purchase of those foreign goods at all thus fueling domestic manufacturing and economy?

It seems like tariffs aren't great short term but if we have the ability to manufacture domestically and are not doing so due to costs, then it may be good in the longer term. Especially because if we rely on those countries now, they have control over those goods and can end them whenever they want. At least this way we can ramp up US manufacturing without a disruption to the existing supply chain, it just costs more.

[–] OsrsNeedsF2P@lemmy.ml 1 points 1 month ago* (last edited 1 month ago) (1 children)

You're understanding tariffs correctly, but the conclusion is off. I'll give an example driving tariffs to the extreme to explain:

Imagine tariffs are so high, the US can't economically import anymore. This is effectively the same as very tight sanctions, aka like North Korea.

Everything in North Korea is manufactured locally, and it doesn't scale. Doing things locally works great, but you focus on a couple things and trade for the rest.

Can some tariffs help the economy? Definitely, it's a bit of a catalyst. Will a lot of tariffs hurt the economy? Also definitely.

Maybe Trump has mathed out the exact level of tariffs to boost the economy. If, however, that is the case, he hasn't shown his work on it.

Edit: I will caveat it is clear most people in this thread saying "even I know what a tariff is!" Are mostly wrong. So if that's why you're feeling crazy, it's because you're in a thread full of people who aren't as smart as they think they are.

[–] TeamBrett@lemmy.world 2 points 1 month ago

Thanks that seems reasonable and makes me feel a little less crazy. i can't imagine Trump knows how Tariffs work or what they would actually be useful for, much less what the best levels are.

[–] Fedizen@lemmy.world -1 points 1 month ago

fake story about how workers are dumb. Yeah.

I mean regardless I think pulling back spending is a great idea for 2025. Make those purchases now while they're still cheap. Buy your toilet paper etc

[–] Mango@lemmy.world -5 points 1 month ago (1 children)

They don't need to buy a year of stuff. They need to buy American. It'll be more expensive, but people should not be cheap. We're not appliances and Chinese people also aren't appliances.

[–] FabledAepitaph@lemmy.world 2 points 1 month ago (1 children)

Who's going to pay for all the expensive American stuff? Nobody, because they already barely afford the cheap Chinese stuff.

[–] Mango@lemmy.world 0 points 1 month ago (1 children)

Well that's because the money is going to China instead of back to Americans.

[–] FabledAepitaph@lemmy.world 2 points 1 month ago (1 children)

I mean, that sounds pretty reasonable. But can you list any countries with isolationist economic policy that are more prosperous than America? I can't. How do you account for the loss of inflow of foreign money into America after America stops spending money elsewhere? You can't.

[–] Mango@lemmy.world 0 points 1 month ago (2 children)

Well that inflow is from what we're selling, right? Not buying.

Also, Denmark? They seem alright. Correct me if I'm wrong about their policy.

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