It's sad that Jimmy thought he had to explain this, but he's not wrong. Just look who we elect. Public schools are basically day care, teaching to the slowest in the group.
It sounds tough to a guy that doesn't understand tariffs nor economics. There are a lot of moving parts. Tariffs can work if they are applied in a focused, well thought out way, but blanket tariffs on countries does not work.
China did do some negotiation on some unfair trade practices. Tariffs have positives and negatives. Tariffs can give you leverage. Also, the biggest consumer of US companies is the American people. US companies will think twice about manufacturing outside of the United States due to the tariffs. Even NAFTA had positive and negative results. 🤷♂️
Correct, tarrifs are a great tool when used correctly and not just blanketed everywhere, Jimmy failed to mention or fails to see the potential benefits of precision tarrifs, if Trump is as clever as he makes out he will be targeted in his tarrif actions, another argument is that just by threatening tarrifs to any country it's makes that country get back into line and play a fair game themselves regarding imports and exports and stealing American technologies and designs is another consideration.
Obviously tarrifs are inflationary and thus recessive but that doesn't make them bad necessarily, developing economies ought to use tarriffs to develop domestic industry and they might have a role in developed economies too. Tarriffs can target labour standards, basically saying that hey if you make a good cheaper because of poorer labour standards then were going to nullify the excess revenue through a tarrif as opposed to if you made it cheaper due to competitive advantage, sort of how we have windfall taxes to nullify corporate gains not due to that companies competitive advantage but rather macroeconomic conditions. Now in actuality this is typically too administratively complex to be effective and efficient and so that's why tarriffs are typically seen as a bad idea by economists on the left and right however hypothetically they can be beneficial by curbing outsourcing, increasing global wellness and protecting fledgling industry in developing economies
Imagine if the United States tariffed all the car imports so that its own cars are much more competitive, would that lead to innovation on the side of the US auto manufacturers? Potentially. But its not guaranteed and is this the best way? I am not entirely convinced. Not saying it won't do as you say, just that there are probably many better options. What the tariffs tend to do is simply shield a protected industry from competition, allowing them to charge higher than they would otherwise, to people who would pay less otherwise. Its recessive as you say. I'm not fond of the idea of taking away cheaper options from people in order to bolster the profits of privileged entities and individuals. On the other side, its like preventing corporations from other countries to set up in your country because they'll end up hiring the best people away from domestics. Its taking away choices from people that may benefit them more. I understand the desire to help domestic industries but its probably best done by direct government investments. In education, R&D in universities, technology transfers, business and vocational training, funding of startups, other government assistance, as well as government consumption. In this way, taxes can be more broadly applied (ideally progressive), and the intervention much more targeted. For example, Israel was able to have a very strong technology start up scene by training their people to be software specialists in the military. When those people finish their enlistment, they can be hired by the private sector already with skills in tech. It did not require them to tax Google, Facebook, Microsoft, etc.
@Basta11 The US already has a developed auto manufacturing sector, placing tariffs on imported cars like they are doing currently isn't a good idea, I agree. The problem with outsourcing in my view is that companies can exploit employees/contractors more, it's not the foreign labour itself. Yeah state investment is typically much better than tariffs in developed economies, like with ASML in The Netherlands
@Betweoxwitegan I'm not sure if there are examples where it was ever good in a developing country. There is always some other reason like the education of the population, or domestic policies that improved internal production and quality of life. Yes, tariffs can protect an underdeveloped industry, but its better to support it directly rather than make people suffer higher prices and/or inferior products. For instance, the government could just buy the supply and hand it over to the people who need it (or sell it at a discount), then they can suffer inferior products with less price, or pay more for better stuff. Not great as there are room for abuses like the US agricultural sector, but its better for the people than tarrifs on food.
Jimmy, so why all of a sudden leave the video and advertise for your website? You did not make the conclusion really that clear... It was unprecedented of you...
The real issue is that the US does not manufacture anything. We merely consume. So tariffs will not strengthen our own country by favoring our (non-existent) manufacturing companies
Why did you do this video? I don't think you quite nailed it neither if you wanted to make a case about the future state or purchasing power of the US consumer (like your scorecards videos) or the rationality of tariffs from the most developed economy, i.e. an economy that generate most of its wealth by focusing on products and services with large added value rather than (wasting time and resources?!?) working on products and services with little added value.
Short term pain for the long term gain for all America first business. Tariffs works wonders when it is done right. Trump has done it right from his last Presidency because Biden has not stopped those tariffs.
In my part of the world we learn about this in the 7th grade at the latest..... What do American kids actually learn at school?
It's sad that Jimmy thought he had to explain this, but he's not wrong. Just look who we elect. Public schools are basically day care, teaching to the slowest in the group.
Wanna take a moment and say thank you! Honestly, enjoy how you break down a company. Keep it going buddy!
If tariffs didnt work the first time or any other time before that, why try for the second time?
It sounds tough to a guy that doesn't understand tariffs nor economics. There are a lot of moving parts. Tariffs can work if they are applied in a focused, well thought out way, but blanket tariffs on countries does not work.
China did do some negotiation on some unfair trade practices. Tariffs have positives and negatives. Tariffs can give you leverage. Also, the biggest consumer of US companies is the American people. US companies will think twice about manufacturing outside of the United States due to the tariffs.
Even NAFTA had positive and negative results. 🤷♂️
Correct, tarrifs are a great tool when used correctly and not just blanketed everywhere, Jimmy failed to mention or fails to see the potential benefits of precision tarrifs, if Trump is as clever as he makes out he will be targeted in his tarrif actions, another argument is that just by threatening tarrifs to any country it's makes that country get back into line and play a fair game themselves regarding imports and exports and stealing American technologies and designs is another consideration.
Obviously tarrifs are inflationary and thus recessive but that doesn't make them bad necessarily, developing economies ought to use tarriffs to develop domestic industry and they might have a role in developed economies too.
Tarriffs can target labour standards, basically saying that hey if you make a good cheaper because of poorer labour standards then were going to nullify the excess revenue through a tarrif as opposed to if you made it cheaper due to competitive advantage, sort of how we have windfall taxes to nullify corporate gains not due to that companies competitive advantage but rather macroeconomic conditions. Now in actuality this is typically too administratively complex to be effective and efficient and so that's why tarriffs are typically seen as a bad idea by economists on the left and right however hypothetically they can be beneficial by curbing outsourcing, increasing global wellness and protecting fledgling industry in developing economies
Great point. It's very easy to explain the negative remarks, but no positive effects were discussed in this video..
Imagine if the United States tariffed all the car imports so that its own cars are much more competitive, would that lead to innovation on the side of the US auto manufacturers? Potentially. But its not guaranteed and is this the best way? I am not entirely convinced. Not saying it won't do as you say, just that there are probably many better options.
What the tariffs tend to do is simply shield a protected industry from competition, allowing them to charge higher than they would otherwise, to people who would pay less otherwise. Its recessive as you say. I'm not fond of the idea of taking away cheaper options from people in order to bolster the profits of privileged entities and individuals. On the other side, its like preventing corporations from other countries to set up in your country because they'll end up hiring the best people away from domestics. Its taking away choices from people that may benefit them more.
I understand the desire to help domestic industries but its probably best done by direct government investments. In education, R&D in universities, technology transfers, business and vocational training, funding of startups, other government assistance, as well as government consumption. In this way, taxes can be more broadly applied (ideally progressive), and the intervention much more targeted.
For example, Israel was able to have a very strong technology start up scene by training their people to be software specialists in the military. When those people finish their enlistment, they can be hired by the private sector already with skills in tech. It did not require them to tax Google, Facebook, Microsoft, etc.
@Basta11 The US already has a developed auto manufacturing sector, placing tariffs on imported cars like they are doing currently isn't a good idea, I agree.
The problem with outsourcing in my view is that companies can exploit employees/contractors more, it's not the foreign labour itself.
Yeah state investment is typically much better than tariffs in developed economies, like with ASML in The Netherlands
@Betweoxwitegan I'm not sure if there are examples where it was ever good in a developing country. There is always some other reason like the education of the population, or domestic policies that improved internal production and quality of life. Yes, tariffs can protect an underdeveloped industry, but its better to support it directly rather than make people suffer higher prices and/or inferior products. For instance, the government could just buy the supply and hand it over to the people who need it (or sell it at a discount), then they can suffer inferior products with less price, or pay more for better stuff. Not great as there are room for abuses like the US agricultural sector, but its better for the people than tarrifs on food.
in what way do tariffs nullify excess revenue when there are bad labor standards?
Thank you Jimmy
I think your forgetting that's it's cheaper for ford to reopen factories ,which are sitting empty in the US, also creating new American jobs
maybe you should do a video on trade surplus, because Trump also no idea how they work too
Good to see you back jimmy. Paul at everything money believes he is a god, his arrogance is very strong. So repulsive to me
Jimmy, so why all of a sudden leave the video and advertise for your website? You did not make the conclusion really that clear... It was unprecedented of you...
The real issue is that the US does not manufacture anything. We merely consume.
So tariffs will not strengthen our own country by favoring our (non-existent) manufacturing companies
Why did you do this video? I don't think you quite nailed it neither if you wanted to make a case about the future state or purchasing power of the US consumer (like your scorecards videos) or the rationality of tariffs from the most developed economy, i.e. an economy that generate most of its wealth by focusing on products and services with large added value rather than (wasting time and resources?!?) working on products and services with little added value.
Short term pain for the long term gain for all America first business. Tariffs works wonders when it is done right. Trump has done it right from his last Presidency because Biden has not stopped those tariffs.
first
yes but he can reduce income tax so that can work on opposite direction