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Forums - Gaming Discussion - Trump's new tariff proposals include a 25% tax on video game consoles

Cerebralbore101 said:
fatslob-:O said:

Doubt it, America then was dominant because of surrounding circumstances during that time and not down to policies ... (the entire world suffered massively from the after effects of WWII in comparison to the US only seeing pearl harbour getting attacked) 

Government funding for research has only ever proven to be effective at the large scale when attempting to reverse engineer goods from current market leaders to be able to catch up to them but even with state subsidies it has been a huge undertaking by the Chinese government to recreate/rediscover every bit of western technology and sometimes it's a success to the point where Huawei is the leading edge carrier equipment provider and other times like we see with Fujian Jinhua who's been trying to make DRAM with results that have been less than impressive so far despite pouring in billions from the government itself ... (government subsidies do very little once you're the market leader)

People didn't get student loan debts back then because there was a smaller market for post-secondary education so the schools charged less and there were less enrollments as well ... 

If China beats America, it'll be because what they've reverse engineered isn't much behind the leading market leader and they provide abundant high quality labour as well. Mixed economy ? LOL, you must be kidding ... 

China has a 996 hour working hour system, no freedom of movement even within their own country, far worse income inequalities than the western world, anti-union laws, far less generous subsidies/employee benefits and if there was ever a scale from 1-10 rating just how capitalistic each nation is with the US rating at 10 then China would be rated at 11 because that's just how competitively ruthless their system is ... 

A trade war is necessary to curb stomp China's ascent because if one nation has the ability to truly bankrupt America then it's China and only China ...

You are right that the US was helped a lot by the fact that the rest of the world was hurt badly by WWII. Other things also helped a lot though such as... 

1. Women started entering the workforce, which meant less people sitting around doing nothing. 

2. Interstate highway system (authorized in 1956) made transportation of goods, and building materials easier. 

3. Regulation of markets to help protect against things like pollution, low pay, and a ton of other things that can slow down an economy. 

4. Heavy government investment in R&D. 

5. More people going to college thanks to the government subsidizing education. (G.I. Bill and the like)

I'm not going to pretend to know exactly how much of it was a result of the rest of the world being bombed out, and exactly how much of it was a result of the above 5 things. But to just say it was all just a result of the rest of the world being bombed out is not the whole picture. 

"Government funding for research has only ever proven to be effective at the large scale when attempting to reverse engineer goods from current market leaders to be able to catch up to them."

We were the current market leader in computer technology when ARPANET was being built, and that research eventually gave fruition to the internet as we know it. When we landed on the moon, we didn't just catch up to Russia in space tech, we blew right by them. Same goes for when we developed nuclear bombs. Government research didn't merely allow us to catch up. We passed current market leaders. Russia didn't have the bomb until 1949. 

In 1989 there were 13.54 million people attending college in the US. In 2018 there were 19.83 million people attending college in the US. https://www.statista.com/statistics/183995/us-college-enrollment-and-projections-in-public-and-private-institutions/ The population of the United States was 246.8 million in 1989. So that makes the college enrollment rate about 5.4% in 1989. Using the same math the enrollment rate was almost exactly 6% in 2018. That's an 11% increase in almost 30 years. Now look at the  following graph. 

And, yes that graph is adjusted for inflation. It's all in 2018 dollars. Why has the cost of public four year schools nearly tripled, while enrollment hasn't grown all that much? Why has price exploded, but demand has not? 

Yes, all those things out listed about China suck. Slave level working hours, no ability to move in country, income inequality, anti-union laws, etc. But that doesn't make them not a mixed economy. Mixed economy simply means the government, and businesses work together to sustain or grow the country's economy. You can be a mixed economy, and still be anti-freedom, high poverty, no workers rights etc. 

P.S. Trump's overall policies are extremely damaging to the U.S. economy as a whole. Even if he managed to reel in China, we'd still be going down the toilet fast thanks to his other policies. But let's not make this thread about that. That would be a whole other thread topic. 

Just look at who works in those colleges.

I would have to dig deep to find it again, but in one state, the report was that in 1990 they had about 12000 Teachers and 3500 other staff. 2018 they had 11000 Teachers and 12000 other staff, especially tons of accountants and the like.

So yeah, colleges are hiring tons of people they actually don't need at all, and that makes the tuition fees explode - besides the obvious attempt at greed, of course.



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Cerebralbore101 said:

You are right that the US was helped a lot by the fact that the rest of the world was hurt badly by WWII. Other things also helped a lot though such as... 

1. Women started entering the workforce, which meant less people sitting around doing nothing. 

2. Interstate highway system (authorized in 1956) made transportation of goods, and building materials easier. 

3. Regulation of markets to help protect against things like pollution, low pay, and a ton of other things that can slow down an economy. 

4. Heavy government investment in R&D. 

5. More people going to college thanks to the government subsidizing education. (G.I. Bill and the like)

I'm not going to pretend to know exactly how much of it was a result of the rest of the world being bombed out, and exactly how much of it was a result of the above 5 things. But to just say it was all just a result of the rest of the world being bombed out is not the whole picture. 

1 and 2 had an effect but not so much for 3, 4, and 5 ... 

Environmental regulations are just a slog for economic growth and depending how employees are paid less, it can actually increase productivity. You need to stop pretending that the so called scandinavian 'dream' of getting tons of state aids and strong employee unions are somehow viable when corporations in those countries like Ericsson and Nokia are falling victim to Chinese competitors like Huawei ... 

Most of the America's golden age was due to a world in turmoil but now with strong competition from China, America can't afford to slip up anymore because the moment it does is the moment that China will seek to monopolize all high-end technology ... 

Can you imagine a world one day where America and it's allies buys all of it's defense equipment from China ?! Do you not somehow see the conflict of interest this poses ?

Cerebralbore101 said:

We were the current market leader in computer technology when ARPANET was being built, and that research eventually gave fruition to the internet as we know it. When we landed on the moon, we didn't just catch up to Russia in space tech, we blew right by them. Same goes for when we developed nuclear bombs. Government research didn't merely allow us to catch up. We passed current market leaders. Russia didn't have the bomb until 1949. 

The US was nearly ALWAYS the market leader regardless because the rest of the world was too busy recreating their own physical infrastructure ... 

ARPANET was nothing more than a concept. The internet as we know it today is largely thanks to the contributions of many private investments and work from large corporations such as Bell Laboratories and Cisco but many of them had very few state subsidies work with as well. The internet wasn't created mostly by some government funding like you seem to believe but it was created in collaboration with many corporations all over the world ... 

Yeah, I'm not sure if making a comparison between military technology like nuclear bombs to consumer technology is a great idea when the former has to face no market competition ... 

Cerebralbore101 said:

In 1989 there were 13.54 million people attending college in the US. In 2018 there were 19.83 million people attending college in the US. https://www.statista.com/statistics/183995/us-college-enrollment-and-projections-in-public-and-private-institutions/ The population of the United States was 246.8 million in 1989. So that makes the college enrollment rate about 5.4% in 1989. Using the same math the enrollment rate was almost exactly 6% in 2018. That's an 11% increase in almost 30 years. Now look at the  following graph. 

*snip*

And, yes that graph is adjusted for inflation. It's all in 2018 dollars. Why has the cost of public four year schools nearly tripled, while enrollment hasn't grown all that much? Why has price exploded, but demand has not? 

Sorry, but it doesn't work that way in the real world ... 

increased enrollments =/= proportionally increased prices 

And not to mention, post-secondary schools were far less advanced back then but they also had fewer facilities as well ... 

Cerebralbore101 said:

Yes, all those things out listed about China suck. Slave level working hours, no ability to move in country, income inequality, anti-union laws, etc. But that doesn't make them not a mixed economy. Mixed economy simply means the government, and businesses work together to sustain or grow the country's economy. You can be a mixed economy, and still be anti-freedom, high poverty, no workers rights etc. 

P.S. Trump's overall policies are extremely damaging to the U.S. economy as a whole. Even if he managed to reel in China, we'd still be going down the toilet fast thanks to his other policies. But let's not make this thread about that. That would be a whole other thread topic. 

They're a "mixed economy" for the right reasons, you have the wrong reasons to implicate why America should model it's mixed economy like China's for totally different reasons. China's system is optimized for growth and self sufficiency. Trump realizes a weakness with America's system is that it's not optimized for holding on to global monopolies and he's trying to fix this but it's proving to be very hard to prevent the transfer of power to China ... 

Trump NEEDS to reel in China otherwise silicon valley as we know it may deindustrialize like the rust belt did and we won't see American brands like Apple, Google, Facebook or the others out there anymore in the future if they get ousted by Chinese competitors ... 

Silicon valley performing well is good for America's interests but performing badly threatens American interests and to a lesser extent their allies interests as well ... 



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KManX89 said:
These "taxation is theft!" GOPers have no leg to walk on now.

That's more of libertarian thing.

I'm kinda indifferent about this because democrats admit they want raise taxes significantly. So its not like the alternative is a better scenario per se. Frankly, they want people to have less buying power.

So... lets see how this ends I guess.



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Locknuts said:
I wonder whether it's feasible to have them built in a country other than China?

I think Venezuela is a good choice.

Countries destroyed by communism are always great for producing crap.



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Mr Puggsly said:
Locknuts said:
I wonder whether it's feasible to have them built in a country other than China?

I think Venezuela is a good choice.

Countries destroyed by communism are always great for producing crap.

Or Africa! Countries destroyed by capitalism are always great for producing crap.



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vivster said:
Mr Puggsly said:

I think Venezuela is a good choice.

Countries destroyed by communism are always great for producing crap.

Or Africa! Countries destroyed by capitalism are always great for producing crap.

Don't forget about the Eskimos!  They might not be able to hunt seals anymore due to climate change but they sure as hell can make the next xbox.

I thought it was colonialism that destroyed Africa.  Colonialism capitalist?

Last edited by sethnintendo - on 27 May 2019

Mr Puggsly said:
KManX89 said:
These "taxation is theft!" GOPers have no leg to walk on now.

That's more of libertarian thing.

I'm kinda indifferent about this because democrats admit they want raise taxes significantly. So its not like the alternative is a better scenario per se. Frankly, they want people to have less buying power.

So... lets see how this ends I guess.

Nope, you always hear Republicans decry taxes as the next coming of Satan, how the government should leave millionaires/billionaires/mega corporations and their piles of cash alone.

It'll be interesting to see them try and DEFEND raising taxes now that their orange overlord is waging war with China and will be effectively slapping a $600 price tag on next-gen consoles, which I'm willing to bet has happened already. The hypocrisy there will be fucking hilarious to see.



SpokenTruth said:
Shore said:

That wouldn't affect microsoft and sony consoles here where i live (they actualy produce them locally!) but nintendo products will be severely affected by this.

You wouldn't be affected by US tariffs on Chinese goods no matter where they are manufactured.  You live in Brazil. Tariffs are a tax paid by local import companies, not the actual nation the tariffs apply to. 

He is talking about our grey market. Most of it comes from Paraguay, that import from USA (from regular stores).

So they would need to change the way to import (Paraguay) from China directly.

Dulfite said:
Here's my take. It will only be temporary, and China cannot win a trade war with the U.S. so they will eventually break and then prices will be lower again and the U.S. will reap the benefits of having done it in the first place by having American made products purchased more because the tarrifs increase the cost of foreign imports and make them less of a steal. We import far more from China than they import from us, so they cannot win this fight. It's just a matter of time.

1). You must not be too familiar with the growing Chinese economy.  They already passed the US GDP under purchasing power parity indicators and will pass the US by 2026 using non-purchasing power parity indicators.

Also, the reason we import a lot of products in not just for the sake of cost but because it's not manufactured in the US at all.  You can't just buy US manufactured Sony, MS or Nintendo consoles because they aren't manufactured here. And that's just talking final products.  When you start talking about components, we would get our asses kicked. Want US rare Earth minerals?  Good luck.  80% came from China.  And the 10% or so we do mine ourselves, we ship to China for processing...which is now subject to the tariff anyway.

By the way, we are not China's only export market. Not only can they win this trade war, but it could easily make their ties to other markets stronger making them and those other markets themselves stronger.  While we lose because we do not have the materials, infrastructure or markets to make up for the difference or lost access to minerals and products.

And finally, you (and Trump) need to recognize that we are a global market.  You cannot isolate yourself anymore.  That ship sailed decades ago. 

VAMatt said:
DonFerrari said:

Depends on the legislation, but most certainly would apply to all.

At least in Brazil all gaming SW have the same tariff independent of being on any hardcopy.

Only if the digital game comes from China.  And, at this time, they're only talking about consoles anyway.

That is why I said depend on how the law is written.

In Brazil we pay the same tax for digital and physical sold here. But if I open an USA PSN I won't pay any brazilian tax, of course government could see that as tax evasion.

FarleyMcFirefly said:
Pardon my ignorance, but will this have a big effect on Canada as well?

I'm all for taxes when they are used properly, but this seems like bull shit.

No tax is used properly.

Lafiel said:
cycycychris said:
Better add at least $100 onto the price of all consoles now. Right in time for the next gen too. I actually wouldn't be surprised if this makes the console makers looking into assembling the consoles in the US. Don't know if that would knock enough off the price to make it work the effort though. But if this tariff is something that they think will stay in place for a while its an option. Overall more bullshit from Trump.

Wouldn't most parts come in from China and hence get slapped with tariffs? Sony afaik still has some assembly lines in Japan they could expand to atleast lessen tariff impact on a part of their US bound consoles.

Not really, you can always use a proxy in the middle.

Or you can use the plants of Sony and MS in Brazil.

Bofferbrauer2 said:
sethnintendo said:
Just want another country to start building durable goods again. These days most shit from China is cheap and shitty. Sure there are some reliable products but go back 3 or 4 decades they built shit to last. Now we are in a throw away economy. Something breaks go buy another because prob cost just as much fixing than to replace. I'll take Japan they usually make good shit. They can make good cars but apparently not airbags!

Problem is, that the incentives for that are made from us, not China.

Customers in general rather buy cheap products than long-lasting ones. Which pushed the producers to keep things running just as long as they need to, aka as long as it's under some kind of warranty.

So, either the whole population shifts its consumerism to long-lasting products, or there need to be legal changes in the length of warranties to make that happen.

cycycychris said:
Better add at least $100 onto the price of all consoles now. Right in time for the next gen too. I actually wouldn't be surprised if this makes the console makers looking into assembling the consoles in the US. Don't know if that would knock enough off the price to make it work the effort though. But if this tariff is something that they think will stay in place for a while its an option. Overall more bullshit from Trump.

The importing costs get eaten up by wages, so doubtful that they'll do so. Also, new factories would need to get build, which takes a while and is expensive.

However, there's a possibility that the final assembly moves to another third world or developing country, like India, Indonesia, Philippines... to get around the tax. And if it's just the final assembly, China wouldn't loose much of it.

They already have in Brazil.

And since it is a new line of products and they would be starting to build the line 18 months before the new consoles they could make it happen.

Avro1958 said:
It is true that China steals tech, but one can't just sit back and assume they are the only country to do so... I think China is many cases is unjustly made the villain. To many people assume western business are always so innocent and the victim... we also have a strong history of stealing and spying or unjustly influencing other companies. It's just funny we accuse others of what we ourselves do and somehow that's ok.

Yes company will steal from one another. The problem with China is that their law don't even care about IP steal.



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DonFerrari said:

Lafiel said:

Wouldn't most parts come in from China and hence get slapped with tariffs? Sony afaik still has some assembly lines in Japan they could expand to atleast lessen tariff impact on a part of their US bound consoles.

Not really, you can always use a proxy in the middle.

Or you can use the plants of Sony and MS in Brazil.

Brazil afaik slapped a 75% import tariff on electronics (or atleast some of them) coming into the country and I'm pretty sure the rest of the world returned the favor and imposed tariffs on those same categories of goods from Brazil. So, I'm not sure sending over consoles assembled in Brazil is cheaper.