Just how bad will Trump tariff reignite inflation?

Discussion in 'Economics' started by schizo, Dec 12, 2024.

  1. deaddog

    deaddog

    Yup. Subsidies encourage them to stay uncompetitive. If they were competitive they wouldn't need subsidies.
     
    #111     Dec 26, 2024
    sridhga likes this.
  2. SunTrader

    SunTrader

    Ah huh, except when the other side is giving their corps subs, you're already behind the 8-ball.
     
    #112     Dec 26, 2024
  3. schizo

    schizo

    I think what he really meant was cutting off welfare to the poor while subsidizing the rich like Musk. A typical Republican response.
     
    #113     Dec 26, 2024
    Picaso likes this.
  4. 2rosy

    2rosy

    No. I meant using basic economic knowledge. Understanding what dead weight costs are, comparative advantage, and where inflation comes from.
     
    #114     Dec 26, 2024
  5. schizo

    schizo

    When you're raising the tariff on Chinese goods, it ain't the Chinese firms that bear the brunt, it's the US importers. So ideally you should be giving MORE subsidies to these US firms to offset their losses. Otherwise, they will only screw their customers by hiking up the damn price. And what will that only achieve? Probably less sale that would eventually lead to massive layoffs, and that can't be good (unless you love recession).

    But then we have Elon Musk as Trump's economic advisor. And he's turning out more like Trump than the other way around. God I hope we don't go down the same route as Putin's Oligarchy in this country.
     
    #115     Dec 26, 2024
    Picaso likes this.
  6. SunTrader

    SunTrader

    So you expect government to know that, and do the right thing huh?

    I, for the most part, don't when it comes to trade.

    Note: it helps for clarity to quote the previous post to keep the chain of communication ... clear.
     
    #116     Dec 26, 2024
  7. 2rosy

    2rosy

    I think this makes my case of basic economic understanding is needed.
     
    #117     Dec 27, 2024
  8. schizo

    schizo

    Okay, hotshot, enlighten me.
     
    #118     Dec 27, 2024
    Picaso likes this.
  9. sridhga

    sridhga

    Some points from Trump's agenda:

    1. Cut down on immigration.
    2. Tariff on foreign goods
    3. Expand domestic industry (Emphasis on crypto industry)

    Are they not conflicting with one another? Just asking.

    I am neither pro-Trump nor anti-Trump. I just don't care. I learnt to go long when markets go up, or, to go short when they go down without any personal attachment. Actually, I am hoping Trump will give me more trading opportunities with his tantrums on social media.
     
    #119     Dec 28, 2024
  10. sridhga

    sridhga