"Trade wars are easy to win" (collection, companies, interest)
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While China is guilty of unfair trade practices and the US should be acting to protect its national-security interests, some of the existing tariffs have hurt American consumers and businesses, Yellen said.
If anyone thought China was "breaking the rules" before, you probably haven't seen anything yet. Telling China what they have to do and expecting them to do it is a fairly silly strategy. You can use tariffs in a punitive fashion while funding the government, but that would make too much sense and we could actually accomplish something by doing that. But alas, it requires a little sacrifice from the Wallstreet crowd, and we just can't have that...
Funny isn't it? When have Democrats EVER met a tax that they didn't like, and actually wanted to cut? EXCEPT when it applies to products made in other countries, by foreign workers, under unfair trade practices, and dumbed in this country. The same party that wants to jack up taxes on companies producing products here, force ever higher wages, benefits and regulatory costs-all costing American jobs. They also want to eliminate all taxes on products sold in this country made by foreign workers.
OK, this isn't the forum for political crap, and I apologize for that (actually forgot I wasn't on POC at first). But-please, tell me, am I missing something? Every tax on an American producer also hurts American businesses and consumers, as Yellen says. Why do they only seem to care about the ones on imports, and particularly on Chinese ones?
Yes she is wrong - again - read the article, essentially says they are restructuring because of politics. It says "some tariffs have hurt consumers and business" as an excuse but the tariffs have helped some US industries significantly and the overall impact is positive to the US economy.
The amount that has "hurt" consumers and business is pretty much in the weeds impact other than a few companies and individuals and most of the costs are very small even to them. These tariffs were always more for politics and encouraged certain behaviors than any great economic impact.
To put it into real numbers, US has GDP of $20T, if there is 20% tariff on $200B worth of goods - the overall impact to the CPI would be 0.2% ($40B tariff increase on $20T) if all of the tariff was passed on to consumers. But the reality is that some of this increase is absorbed by US or China businesses in increased costs and reduced profits - more likely is about 0.1% consumer increase. If all of the tariff was absorbed by US businesses, corporate profits (worst case) would decrease maybe 1% from about 9% to about 8% - more likely is they absorb a small part of the tariff cost reducing profits some small amount and pass part to China manufacturers - the tariff impact is relatively modest to businesses, which may explain why U.S. equities aren’t troubled by it. That Tariff is a tax so the $40B goes into US tax coffers, adding as much as 1% of taxes collected. The biggest impact is on China GDP, reducing it probably some 0.3% as they absorb some of the tariff costs and some production shifts to other places to avoid the tariff.
Overall, CPI increase maybe 0.1%, profits may drop a little, tax collection increases some and china trade drops a little as shift to other locations, maybe even to the US - really always meant to encourage China to make changes and play fair - economic pressure to change the politics associated.
BTW - Who are "the others" that think "we lost the trade war" - the article is from a trade group that is most impacted - not an unbiased group and even they don't think "we lost" - really did not, China has modified behavior and the US has reduced the impacts in kind.
Here's the problem with the US trade wars was that it started with Trump but he wasn't allowed to finish it. At the end of his admin they were trying to negotiate new deals but the election and whatever impeachment has hurt policy making. This is the problem with US politics, there's not much time for any admin to make meaningful decision making until a decade or 2 for historians to look back at the effects.
I'm sure Biden's admin will not get the job done, the guy is incompetent for DC insider. This is the reason why he's lost 4 times running for prez.
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