The cost of outsourcing is certainly higher than the profit from trade. The US is the biggest consumer. The iPhone is hardly a fad in China like it is in the US. If terrifs are equally put on Samsung then the price of iPhone in the US won't be a reason to change brands.
There is also a huge lie that is spread by anti terrif interests. The lie that prices at the store are determined by manufacturing costs. A 50% increase in manufacturing costs would not necessitate a 50% increase in price to bring in the same profit. But if that same 50% increase meant the job is made domestic then that is 100% domestic earnings which is then spent domestically, multiplying the value of that money.
So while Americans would lose 30% at the purchase they gain 200% at the production line.
Free trade is can be good. But sometimes terrifs can be better.
[–]Lacklo[S]0 points
0 points
0 points
(+0|-0)
ago
Good points. I also think that the average US citizen would be willing to pay an amount more knowing that his fellow citizen is working to produce a said item. I certainly would.
[+]Lacklo0 points0 points0 points
ago
(edited ago)
[–]Lacklo[S]0 points
0 points
0 points
(+0|-0)
ago
(edited ago)
This is a tough one, but would surely bring jobs back to the US if Trump acts on his promise. The country would have major problems for some time though.
[–] canbot ago
The cost of outsourcing is certainly higher than the profit from trade. The US is the biggest consumer. The iPhone is hardly a fad in China like it is in the US. If terrifs are equally put on Samsung then the price of iPhone in the US won't be a reason to change brands.
There is also a huge lie that is spread by anti terrif interests. The lie that prices at the store are determined by manufacturing costs. A 50% increase in manufacturing costs would not necessitate a 50% increase in price to bring in the same profit. But if that same 50% increase meant the job is made domestic then that is 100% domestic earnings which is then spent domestically, multiplying the value of that money. So while Americans would lose 30% at the purchase they gain 200% at the production line.
Free trade is can be good. But sometimes terrifs can be better.
[–] Lacklo [S] ago
Good points. I also think that the average US citizen would be willing to pay an amount more knowing that his fellow citizen is working to produce a said item. I certainly would.