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irstupid on 08 August 2018
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haxxiy said:
irstupid said:

The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.

So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.

I'm not saying us consumers win, just pointing out the philosophy behind it.

Why not to India or Vietnam then, assuming they would move (which they won't, since it's consumers anyway who will take the toll of increasing taxes).

What boggles my mind the most is how the Trump fanbase is swallowing some of the cheapest left-wing policies anyone can think of without blinking an eye. Or not, since, uh, you know.

 

Lafiel said:
irstupid said:

The point is that if it costs too much to manufacture the parts in China, then US companies will move their factories back into the US.

So the products will once again be made on US soil, thus creating more jobs. Even though it costs more to make in the US, the products are still competitive because of the large trade tax on Chinese goods.

I'm not saying us consumers win, just pointing out the philosophy behind it.

uhh.. certainly not in the short term and you said before you expect this situation to be short term

You two do realize I'm basically just quoting what anyone can find in an economics book in college.

I'm not defending or arguing this will work or not, just laying out the philosophy behind what a trade tax can do.

It's also just common sense. Same thing with Corporate tax rates. The lower the tax rate, the more enticing it is for a corporation to move there so they pay less taxes.

Why did all these US companies go to China, or India, or whever for the big famous word "OUTSOURCING" Because they can produce their product for cheaper and make a larger profit and/or compete better. Obviously if one were to tax the products leaving there high enough, it would negate the benefit.

But as will the corporate taxes I listed above, US is not the next cheapest place behind china.