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Tag Archives: tariffs

Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans – Publications – AEI

AEI Backfire economics: Consumers are and will be paying higher prices due to Trump’s tariffs/taxes on Americans From CNBC: The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. The new tariffs are scheduled to begin Sept. 1 and in mid-December. “What distinguishes China...

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Backfire economics: Trade war updates – Publications – AEI

AEI Backfire economics: Trade war updates 1. Jake Tapper interviewing White Trade advisor Peter Navarro today on CNN: “You and the administration keep saying the entire burden of these tariffs and this trade war is being borne by China.” Peter Navarro: “And that is absolutely true. We have seen absolutely no evidence in the price data. It’s not showing up in the consumer price index. They’re not hurting anybody here. They’re hurting China.” 2....

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Venn diagram of the day on the gobbledygook that is Tariff Man’s trade ‘policy’ and the gullibility of his supporters – Publications – AEI

AEI Venn diagram of the day on the gobbledygook that is Tariff Man’s trade ‘policy’ and the gullibility of his supporters The Venn diagram above was inspired by Don Boudreaux’s post on Cafe Hayek featuring an email from his intrepid college Veronique de Rugy, reprinted below in its entirety: President Trump explained yesterday that he would delay the new wave of tariffs on China to December 15th as to not derail Christmas shopping in America. That implies that he...

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Trump inadvertently admits in a Tweet that his trade war is an abject failure – Publications – AEI

AEI Trump inadvertently admits in a Tweet that his trade war is an abject failure Here’s the opening of an article in today’s Wall Street Journal titled “Trump Ordered New Chinese Tariffs Over Objections of Advisers“: President Trump overruled advisers to ramp up tariffs on China after a heated exchange in which he insisted levies were the best way to make Beijing comply with U.S. demands, according to people familiar with the matter. Barring a break in the impasse,...

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The laws of economics cannot be wished away

In areas such as rent control and minimum wage laws there’s an increasing tendency to ignore the basic laws of economics, and hope they somehow don’t apply to the policy being considered. President Trump provided another example in this recent tweet: There are multiple errors here.  The first sentence is incorrect; the yuan was much lower when I first visited Beijing in 1994.  The second sentence is also incorrect, for two different reasons.  Currency manipulation is...

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Neil Cavuto schools Tariff Man on his stubbornly repeated clueless ignorance about who actually pays tariffs – Publications – AEI

AEI Neil Cavuto schools Tariff Man on his stubbornly repeated clueless ignorance about who actually pays tariffs Here’s another perfect example of why you just can’t have any confidence in any positive effects coming from Tariff Man’s trade policy and trade war — he still doesn’t even grasp basic principles of Trade 101 that even a fifth grader could easily understand: Tariffs are taxes on imports and are paid for by Americans, not foreigners. From the video...

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Rate Cut! Tariff Hike! ShiffGold Friday Gold Wrap August 2, 2019

The Federal Reserve came through with its first interest rate cut in more than a decade this week. But with Jerome Powell trying desperately to convince everybody that this wasn’t the beginning of a long cutting cycle, the stock markets weren’t pleased. And neither was President Trump. So, he decided to put his own fingerprint on the markets, announcing new tariffs on Chinese products. In this week’s Friday Gold Wrap podcast, host Mike Maharrey breaks it all down and explains how it...

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More backfire economics: Tariff Man’s trade war continues to take a toll on American businesses and farmers – Publications – AEI

AEI More backfire economics: Tariff Man’s trade war continues to take a toll on American businesses and farmers More fallout, friendly fire and collateral damage on Americans from Tariff Man’s trade war, here are some of the latest victims/casualties: 1. On the Cotton Farm: Stockpiling and Fearing Big Losses From Trade Fight: In Arkansas, exports have tanked and prices dropped: ‘It’s going to be a struggle’ 2. Hit by 93% Tax, Napa Wine Falls Victim to Trade War in China 3. The...

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Anecdotes vs. Data in the Trade War

Anecdotes are not necessarily useful to understand the social and economic world. An anecdote based on a sample of one can be worse than useless. A related point: we don’t expect a plumber to be able to criticize the mechanics of fluids; and we don’t expect a businessman to successfully challenge the economics of international trade. Jean-Baptiste Say, author of the 1803 Treatise on Political Economy, was an exception, and he wrote a whole treatise to prove it. Brian...

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Venn diagram of the day….. – Publications – AEI

AEI Venn diagram of the day….. …. was inspired by Jon Murphy’s post on Facebook: Why is it that economic sanctions imposed by the US government preventing Iran from importing harms Iran but economic sanctions imposed by the US government preventing the US from importing is “making America great again”? Trump’s largest consistency is his inconsistency. Q: If economic sanctions weaken Iran’s economy as intended by preventing Iranians from importing...

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