this post was submitted on 12 Nov 2024
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[–] hydrospanner@lemmy.world 20 points 1 day ago (2 children)

I feel like most people I have heard talking about them while supporting Trump seem to know that tariffs are taxes, but have no concept of how they play out in a real economic situation. Most fall into one or both of two camps:

A) Tariffs are taxes, but they're taxes for companies not individuals, and they're only applied to importing, so they won't affect me.

B) Tariffs are taxes for foreign companies, to level the playing field and keep American business competitive. Since the companies that have to pay it are foreign, it won't affect me.

Spoiler alert, guys: no matter where the tax is levied in the system, the consumer is the only person who ever pays for it, since they're the only ones that can't pass that cost on to anyone else.

Also, while this can make domestic competitors more competitive, it's important to remember two things: first, if it works, it's only working by making things more expensive for consumers, and second, this assumes that the domestic competitors want more business, have the ability and posture to increase their production to meet the new greater demand, and will operate in good faith. Much more likely is that they simply also increase their prices in reaction to the tariffs, so they're not producing or selling any more volume and aren't creating any jobs... they're just padding their profit margins at the corporate/shareholder level while doing nothing for their employees, all while having the average consumer foot the bill.

That's exactly what happened with the steel tariffs in the first Trump term and that's exactly what will happen now...the only difference is that this time it seems like there will be significantly fewer economic buffers between the tariff and the consumer, so more people will more directly feel the sting here...and presumably the mental gymnastics from the MAGAts will be even sadder in their attempts to somehow make it not a criticism of their orange leader's incompetence.

[–] ericbomb@lemmy.world 3 points 19 hours ago

"Surely the company that sells a product for $100 will keep selling the product for that price once tariffs mean that it costs a $125 to produce and import!" - crazy people.

[–] Asafum@feddit.nl 6 points 1 day ago

Tariffs are taxes, but they’re taxes for companies not individuals, and they’re only applied to importing, so they won’t affect me.

Typical Magoo (literally my dad in 2016): "you can't tax business owners, they're going to just make everything more expensive for us! They pass on the burden to us!"

Also Magoo: "Yay tarrifs! They are a tax on business but that won't get passed on to me!"

The Magoo motto: Whatever words I need to use to suit my purpose I will use, to hell with reality.