The problem is, the people who actually need to hear this and gain the knowledge are those most unlikely to sit through this excellently presented discussion.
Just like how Mexico was never going to pay for the wall, other countries don't pay for tariffs. I have had to explain this to quite a number of my family members and it gets more and more depressing. Misinformation is so dangerous, and media companies are not doing enough to combat it due to how isolated people are in news bubbles when they only look at sources that are aligned with their existing beliefs. They have no concept of just how biased they are.
No, this is exclusively a right-wing media circuit issue which constantly tells lies. Conservatives just go along with whatever Trump says. The left/liberals are not as cohesive and generally hold each other accountable.
@@nctpti2073 Other countries will benefit by taking what used to be US market share. Whatever market share we lose from this won't be coming back, the rest of the world doesn't have an interest in our future... especially now that we've pissed pretty much everyone else off. I really hope congress can come together and veto any extreme tariff policies. Future generations will feel this more than we will.
@@crispychrissy I think what he, fuzzily, imagined in his head was this (And I would like to point out that I’m trying to guess the inside of Trump’s brain here, so this is neither my opinion nor correct: “China is currently subsidising goods that are exported, e.g. E-Cars. This means these goods are sold in the US market below their production costs. If the US tariffs them exactly to the price they would have had without the Chinese subsidies, the Chinese government is paying for the tariffs.” Now, apart from the fact that e-cars are a very specific and narrow lane of goods, and almost all products imported into the US do not benefit from subsidies, this logic ONLY works if the tariffs have zero impact on consumer behaviour, and in that case, the end result is STILL that the price tag for the goods is higher than it were if the government did nothing.
Incorrect. The Smoot-Hawley Tariff Act exacerbated the Great Depression, which had already begun. President Trump's tariffs are a negotiating tactic aimed at securing more favorable trade agreements. For instance, Japan's 15.5% tariff on US goods hardly constitutes fair trade.
For real dude, I wanted to move out within the first 3 months of next year, since I got a new job that pays me much better than my last job. Even so, I'm really worried that the cost of living will go up and make it to where my extra pay means nothing and I have to spend, yet another year, at my parent's house.
Fun fact, companies often raise their prices _in anticipation of_ tariffs so they dont have to raise prices 20% at once, but 10% twice instead, to avoid shocking their suppliers. So inflation might rise just by the sheer mention of tariffs, because companies get spooked.
Anyone who knows a little of economic history knows that speculation runs rampant! People would gladly complain about cigarette prices, which were high _because_ the profiteers needed to ensure they made bank on sales. That's nothing to say of domestic policies which subsidized food growers (though only for-profit ones exist), which lead them to selling to developing countries... Of course developing nations didn't have the productivity or subsidies to lower the cost, which put local farmers out of business. Cue starvation and economic depression when a 10% increasing in actual cost lead to a 30% increase in final cost, because of course the profit-seekers wanted to reduce their risk of not making money. Protectionism resulting in consolidation and an economic spiral are the most common end-game for the people who aren't up to defending their dignity, and Americans clearly will not fight against the rich.
We’re already seeing this in way of electronic components and import foods like fruit. So great to know this is just a peek into how awful this is going to get
And that already happened the day after the elections, with companies canceling Xmas bonuses to fund the purchase of extra materials ahead of the expected tariffs.
Tariffs during the first Trump administration caused major issues for steel purchases with my local family owned hardware store (competitor to big names). The existing steel vendors had to move to US steel, which did not have the supply to meet demand. Many of the customers complained that they couldn't finish their projects when steel was unavailable, and that the prices had jumped way too much. Ironically, the major customers were people who wanted him to do this.
Yeah those major businesses can buy enough product and push you out of business. Then control the market and raise prices to whatever they want because nobody can undercut them
Therein lies the rub. Tariffs do work under a very narrow set of circumstances and for a very narrow goal, namely to level prices when there is an ample and adequate domestic supply of the same type of goods that is more pricey than the imports, e.g. the auto industry back in the 1980s. There is no other application except as a straight up sales tax.
@@iamcxd9782 This is what the republican politicians want. They want to push small businesses out of business so the big corporations are happy and give them more money.
Tariffs do 2 things. Increase cost for consumers or force small businesses to fail because they cant afford the initial increased cost before passing it back to consumers. Making it easier for Trumps people to swoop in and buy that business for pennies on the dollar. Trumps first tariffs cause the most bankruptcies in farmers ever. I believe it was something like 545 folded in the 1st year.
This is because steel manufacturing for a large part was destroyed because of everything moving overseas. Bring it back and you will have supply, not a crazy idea.
I have literally been dealing with someone who's been arguing that it is super easy to shift vendors for products and won't cost tons of money. I have had to point out that shifting vendors means researching them, negotiating contracts (possibly breaking out of old ones and paying fines too), reworking the transportation system to ensure product, and more. (In a best case where there is already factories, materials and labor lined up.) Like, I cannot emphasize enough that tariffs don't help and the idea of "just move your business out of that country" is not the cure all.
Try arguing with someone who thinks by imposing tariffs, companies outside of the US will race one another to bring their manufacture to the US to circumvent the tariffs, and that will lead to more employment, cheaper product, etc.
People discovering that tariffs are tax is the funniest thing to me as a protuguese speaker, because we don't even have a word for tariff-we just call it import tax.
Enormously regressive tax. How to get voters on board with a tax that is paid for more by the working class than by the class that has all of the wealth.
As Chinese, we Chinese will not create a completely new incomprehensible word based for modern stuff. For example, the computer is called the "electric brain", the light is called the "electric lantern", and the phone is called the "hand machine". Therefore, the Chinese word for "tarrif" is "customs tax". When I sell fabrics to Americans, it is the American buyers who pay the 25% tariff to the Los Angeles Customs. Isn't this common sense? Such a simple international trade rule, Americans don't understand, even debate? Aren't you a capitalist country?
The voted for him because he managed to get away with these 6 times of bankruptcy. They want a crook to lead the country because they believe a crook will steal for them.... oh he will steal, he will steal from everybody.
It's simple - What's good for business is good for the country. - The most profitable thing to manufacture is scarcity. - Therefore, the country is prosperous when there is a shortage of everything.
So the first Trump presidency is what inspired me to minor in economics while I was going for my electrical engineering degree. Most of my extended family works in manufacturing or as farmers, and the first Trump trade war nearly bankrupted several of them. I decided I wanted to learn economics to learn the precise mechanism that led to my aunt and uncle losing their farm. Now we’re looking down the barrel of another Trump presidency and now it’s a question of will we be hit by a recession or a full on depression
Careful brother. . .going to school. . .educating yourself. If you're not careful, you might become one of those academic liberal types with a good head on your shoulders. . .
And this time, the barrel is not a 9 mm pistol. It is a 155 mm howitzer. Add in deporting somewhere between 5M and 30M immigrants at the same time, and I have no clue how we avoid a massive depression and food insecurity.
Help yourself and the people close to you first, and don't mind the idiots around. There's no other outlook than "batten down the hatches" for the next four years, especially if other countries starts applying counter tariffs to US farm products. The earlier the preparation starts, the better. Good luck and godspeed.
bingo. This is actual core economic knowlegde. You don't get reverse inflation, which has it's own name: deflation. At least usually, for most things (only electronics).
Spot on, Any large cooperation that can suddenly make their product for cheaper is certainly not selling it for cheaper.. they now just make more money whilst the public is none the wiser!
i wish we could go back to the days where the people in charge of the companies had names and addresses people could storm.. these ppl really need reminding that we're not just numbers underneath them i think.
As a former customs specialist and current PhD student in supply chain & information systems, who is doing supply base complexity research regarding the 2018 tariffs, this video is largely spot-on. I just have two notes. First, tariffs are not necessarily always detrimental, if some core criteria are followed: a) they are extremely targeted (i.e. not blanket tariffs) b) they have a far-off implementation date (so firms can prepare) c) they are incremental (again, so firms can prepare) and d) they are only enacted after a serious engagement with relevant industries and experts to head off unintended impacts. The 2018 tariffs followed ZERO of these criteria, and the proposed tariffs are also expected to follow ZERO of these criteria. I cannot understate how bad this will be for our economy given the devastation that the 2018 steel/aluminum tariffs had plus the fact that the proposed tariffs are far, far, far more expansive. Second, the situation is actually far more dire than what this video alleges -- this is understandable, there's only so much you can fit into a 20-30 minute segment. The 2018 tariffs had a ton of exemptions for select firms, a necessity since the timeframe between the tariff proposal and enactment was a mere 3 weeks, and firms could not possibly onshore in time. But which firms got those exemptions? Firms with connections to the trump administration. This is laying the groundwork for a hotbed of corruption and cronyism.This will also induce fraud as firms - in a fit of desperation - try to reclassify their imports' country of origin and/or material components (this is alleged to have happened in 2018-2019, with Vietnam and other SE Asian countries suddenly exporting gargantuan quantities of steel despite their local production infrastructure not seemingly able to support this), and with the Customs & Border Patrol already understaffed & underfunded, they will not be able to handle a proportionate increase in investigations or audits. Not to make too fine of a point on this, but all of this will (obviously) in no way help the American consumer. ETA one more point: the type of research I do primarily focuses on sourcing. There are so many diverse minerals and materials used in thousands of products that we use everyday, some of which can only be procured from select regions around the world. Even if you fully onshore as much as you can, there's no getting around the fact that some materials *MUST* be imported because they literally do not exist within US borders. So, no, there's literally no way of fully getting around increased product prices as a result of tariffs, even if the trump administration gets everything it (supposedly) wants.
Wow. Thank you very much for this added insight. I’m in Australia and our dollar plummeted yesterday following the mere mention of tariffs. This is going to have a MASSIVE ripple effect in every trading nation. Buckle up!
Bet you have thought about antimony a few times. We do have it in the US but not nearly enough to satisfy our use. I think we still import over 80% of what we use.
Sad to say, but anyone that wouldn't already agree with you, likely were scared off when you said you were educated. That group can't trust anyone that is educated, gets really close to people trusting science :P
Something this doesn't cover, which I keep bringing up because it isn't getting enough coverage, is that these tariffs hurt small businesses far more than large corporations, and will drive some of them out of business.
capitalism is designs to hurt small businesses and help large businesses. it's designed to benefit those with capital. it's designed to expand wealth, not distribute it.
Love how trump just stumbled through that entire child care speech, making absolutely 0 sense, realized he wasnt making any sense, then said MAKE AMERICA GREAT AGAIN and his cronies all start clapping
Durring and before the first trump presidency i ran a small Blacksmithy out of my own home. the steel tariff Forced me to shut down my business because i couldn't afford steel anymore. Why? because when the prices of Chinese steel went up American steel rose to meet it within about 15 cents per pound and American steel executives just pocketed the difference. Whats worse is that while Stainless steel prices returned to almost normal High Carbon, Medium Carbon, and Tool steel prices only dropped about 50% of what they had risen to effectively putting my business and many other small smithies like me permanently out and lowering the amount of steel jobs. just not jobs that were looked at in the steelworkers census.
Yeah it seems like even some “made in USA” products are going to go away after these tariffs since they need foreign materials. But the GOP will just blame Biden for 4 years anyways
Depending on yiur facility and how much needed a couple dozen methheads could have gotten you 2 or 3 tons of scrap cold rolled steal a night. For cheap
Just after the elections people googled "how tariff work?" & "what are tariffs?" awfully reminiscent of "what is brexit?" & "what does the EU do?" YOU ARE MEANT TO GOOGLE THIS SHIT BEFORE YOU VOTE ON IT NOT AFTER!
To be fair, there is a question on who is doing the googling, it's not necessarily the people who voted for whatever. There no reason why it wouldn't be from people expecting to win who are now looking up the consequences of defeat, beyond a degree of hubris of considering their own side more informed than the other. It may even be coming from the non-voters which is a different concern
You assume google tells them the truth and not what they want to hear because they provide search results for profit and not to validly inform anyone of anything. The major issue of elections these days is people are googling their own bias in a question, an algorithm provides them results they make "like" aka "pay for in some manner" and they get emotionally reinforced by what by all criteria is propaganda or if you're a bit cautious with such words because you think completely falsely screaming about immigrants eating pets is "just" misinformation... it's at minimum marketing... whose only goal whatsoever is to get your sale by any means necessary with minimal exception and nearly zero accountability. While choosing between paper towels is fine for this kind of BS... choosing how to address an extreme societal resource dilemma in the most efficient and effective way possible that aids anyone disadvantaged by such a transition and is deeply rooted in human rights and dignity... should be a much more involved decision. Where we are at is way worse than people understand and we're losing time to decide how to bolster our healthcare food, water and housing rights as our biosphere shift truly changes our lives. But instead we get the old white guy pretending he has a big magic wand and it's gonna fix all our problems.
I personally looked it up to find a link to provide to people who cluelessly think tariffs are something different than what they actually are. Needless to say, I had to provide the link dozens of times already.
@@neilbiggs1353 Thank you, exactly. It's not necessarily "what did I vote for", it could be more like, "How much damage could this thing I voted against do?" Frankly this whole "LOL stoopid voters" narrative is sounding very anti-democratic - like an unsubtle push of "tyranny of the majority", the idea that the general public are too dumb to decide their leader.
Another problem with tariffs - especially to Mexico - is that components often go back and forth multiple times. So car parts might go from Mexico to the US (+tariff) for processing. Then, back to Mexico. Then, back to the US (+tariff). Repeat that a few times and prices could jump a huge amount.
and many companies are going to deicide the best solution to that problem is to move everything to the cheaper country and only have to deal with the tariff once.
@@sfsin3380So then that will be taking even MORE jobs out of America! It's starting to sound like tactless tariffs are pretty much the worst thing you can do to an economy :o
People that thinking a manufacturer is going to decrease it's profit to pay a tariff instead of puting it into the price for consumer to pay are absolutely insane
Has your country been a leader in car innovation? Historically, tariffs put the country behind technologically because their companies no longer have to compete with he rest of the world.
11:00 "Complicated isn't necessarily bad, some problems just ARE complicated. And promising that you can simply wave a magic wand and fix those problems with one weird simple economic trick is a lie." This, in a nutshell, sums up so much of what is backwards about this upcoming Presidency
I've been procrastinating this entire year buying a replacement for my 20 year old Kitchen Aid dishwasher. Looks like my Christmas present to myself will be under the tree next week.
6:00 I'm fully convinced that the majority of his supporters don't even listen to him talk. I'm pretty sure that they get all their info about his speeches from other talking heads because this absolute word vomit was mind numbing.
"Biden raised my taxes" my mother said, as she complained about how high her taxes were as she filed her 2020 taxes. People are actually clueless, human nature is to see a problem and associate it with something they already don't like even if its obvious if you step back and think about it.
either they're too deep in the rabbit hole to get out of their bubble, or they're deaf. I don't know how you could vote for someone who actively, and blatantly talks about defunding the necessities that you and your children depend on, even with the tariffs.
Thank you. When I heard Tump babble about tariffs I said "Thats not how tariffs work". He wants to jack up the price for everything. The us company importing the product pays the bill. Lets say Target wanted to order a Nintendo Switch from Japan. Because their is a tarrif on their product Target would have to pay extra for the product, Target would then raise the price, and then the customer would pay more. The idea is to encourage people to buy American products. That doesn't work because many us companies buy material form overseas and will have to raise their prices. Out of season fruit and vegetables come from other countries so the price of those will go up too.
"The distributor pays the tax, not the customer" is the same insane troll logic the Seattle city council used to try and justify the sugared beverage tax in 2018. (edit: While I stand by the above statement, that the Seattle city council wouldn't be able to pass Econ 101 at any community college, my further rants about the tax's impact were shown false downthread and I've redacted them.)
Also, retailers tend to put the price up by more than the amount that covers their increased cost So if that Nintendo Switch is costing Target 10% more, they put the price up 20% because they know the average customer isn't going to look that closely at the actual numbers and will just blame it all on the tariff, so the retailer can actually increase their profit margin* while blaming everything on someone else * The profit margin per item increases but they'll sell fewer units so the effect on their bottom line is more complicated It's a bad situation for everyone but I'd guess it's slightly less bad if you're the CEO of a massive retail chain
So basically, if you are a country that imports 80% of your consumer goods, you should not put tariffs on those same consumer goods, specially if you dont have an industry that produces those goods.
Yes. Tariffs can be effective at protecting domestic industry from foreign competition, but there's no point if said domestic industry doesn't exist in the first place.
Bingo. This is a rug pull solution, prices will hike because Trump is effectively forcing U.S companies to buy American, and when they can't do that, they must pay the U.s gov a tarrif fee
So, people voted Tr*mp in because they wanted cheaper groceries and fuel. I actually think they believe that their prices are going to instantly come down now. When in reality, it's all going to go up. Well done America, well done.
Not just history - none of my co-workers seem to understand how an increase in the price of steel could affect the price of food??? They also just don’t believe me that the dust bowl happened until I pull out the old documentary videos???
So in defense of the American people the high school American history curriculum does not actually cover much if any of what was talked about in this video. Even though I took economics in high school we still didn’t cover the effects of tariffs.
Reminds me of the day after the Brexit vote when there was an uptick in google searches on what the EU is 😅 it's almost funny how similar the people of both nations still are
I think your shoe example is especially fitting because over 90% of shoes are made elsewhere. My mother worked in a shoe factory growing up. Out of curiosity I looked it up. We don’t make shoes here anymore.
I just wanna say, I just googled the definition of "Tariff", and then I clicked on youtube, and this was the first recommended video. Google, you got some good shit going on.
The algorithm knows what you want to see. It's not always a good thing, sometimes we need to see things we don't want to see or risk succumbing to confirmation bias.
Tariffs will also increase home and auto insurance. When the parts to fix a car go up? So does the insurance. When the cost to fix home damage goes up? So does the insurance.
There so many TH-cam videos describing how the import tax (or tariffs as Trump describe them and these two are identical) works. Does it mean the Americans doesn't know how the tax/tariffs works and they still think the exporting company or country will pay the tax/tariff? 🤔
You must have a crystal ball. You have no clue what tariffs will do. But every country that has ever existed has responded to tariffs with counter tariffs of their own. If tariffs only hurt the importing country why would every country retaliate by… as you claim… raising the prices on their own people? Why would they even need to “retaliate” to tariffs that don’t hurt them? Someone’s lying about tariffs here and it’s not every country that has ever existed. The video refutes itself over and over again. For instance the video asserts that the EU placed a 31% tariff on Harley Davidson. What happened? Did the market crash in Europe?! Did the cost of everything skyrocket in Europe!? No, Europeans just bought other motorcycles. So let me get this right… tariffs work for every country except the US, but only when Trump does them. Got it.
@@BCundergroundHIPHOP that’s a complex question fallacy. It presupposes that I do know what tariffs will do, which I never claimed. What I can say is what the threat of tariffs have *already* done before even implementing them: get concessions from Canada and Mexico. Ergo, the strategy is already working. What i will also assert is that for all of human history no country has ever liked having tariffs placed on their products and seen it and responded to it as a punishment and almost always responds with retaliatory tariffs. In the video they assume that tariffs work everywhere but the U.S , and especially not when Trump does them.
@@vladimirtarabay2416 it’s just poor game theory on your part. You’re also confusing “hurt them” with “not taxing the exporting country”. The “hurt” comes from decreased overall exports. Trump is using the threat of tariffs as a negotiating tactic. The video asserts that targeted tariffs work, so cherry-picking the motorcycle as an example would be a fallacy.
About Trump's childcare response: If tariffs are going to solve the childcare problem, then he is implying that the government is going to pay for childcare (or at least subsidize it), right? In fact, he ends by saying something like "We will have so much money we will be able to take care of all of our people." That sounds an awful lot like socialism, doesn't it? Where was the outcry on the right for Trump supporting socialism?
Also, at one point, he starts getting a little bit off topic (doing "the weave") and he says "I need to stay on childcare." It sounds very much like he is repeating something one of his advisors just whispered into his ear via an earpiece. If you recall, this event happened at exactly the same time as Trump was accusing Kamala of using an earpiece in public events. And as we all know, every accusation is a confession from Trump and his supporters.
@@JoshuaTootell After the Trump trade war with China, basically all of the new tariffs went into subsidies for American soybean farmers who lost their export business. I guess socialism is good when it goes to Trump voters in red areas.
I absolutely love these collaborations with Liz Dye. "..but complicated isn't necessarily bad, some problems just are complicated" is something I wish everyone would realize and are wise words people need to understand.
What weirds me out is, if you said something like "farming's easy it's just sticking a seed in the ground and watering it" or "pfft construction is just banging some planks of wood together" they'd mock you or chew you out (quite rightly, to be clear) for thinking it's that easy. Yet things like legal matters or scientific matters are viewed with contempt if they're complicated.
These kinds of comments are why Reps will keep on winning and winning, no matter who is nominated. If you take someone's lived experiences and instead just put everything down to attacking their education levels, you'll ensure polarisation will keep getting deeper and deeper. Moderates will evaporate. You'll never win hearts and minds by saying those who vote for something different are stupid, regardless of what your opinion is. Not everyone is the same.
3:00 that's exactly what happens in Brazil. We pay roughly 60% import taxes but from every country. The very few local companies that try to produce products that would otherwise be imported, sell them at very high prices, very close to the imported ones. I don't believe that in 2024 people still fall for this bull$hit of taxing products instead of income.
@@AdamVassGal My country, Costa Rica, does the same. Is because these taxes are simpler to collect and don't touch the pockets or the richest persons in the country. In our case tariffs vary between 10%-30% for most products, cars taxes can be as high as 50%.
Hey America! Emotional Support Canadian here. Want to know what our no1 export to the US is? Oil. 4 million barrels a day. The US produces 13.4 million barrels a day at its peak (August 2024), so lets just say out of every 100 barrels of oil, just shy of 25 of them is going to become 25% more expensive. Happy Tarriffing!
@@Palidor19 Oh yeah Winnipeg is still cold, and this time of year it's gonna keep getting colder. Pretty sure it was colder than the sunny side of Mars a few times last year.
I hope this actually doesn't become a nothing burger. I hope this hits us hard. I hope this hits us SO hard that not only does it end to getting reverted, but it also makes Trumpers hilariously unviable in politics going forward. The biggest issue with a lot of Democrat issues is we don't see the negative return on investment fast though for idiots to make a correlation. These are the people who don't believe in climate change because the entirety of the US isn't underwater yet. They don't understand things take time to get worse. If this ended up raising costs in two or three years, these people won't see the correlation. We need tariffs to hit us, hard and fast, so we can literally point fingers at the tariffs and have people understand.
@@jarekguntherMy understanding is those people in the audience were high-net worth people that want the tax cuts to continue. So, they could care less about anything that LYING LIAR says. v
Tarriffs are used to protect your own industry so that they can keep people employed and it give the government power if that industry become too greedy on profits. I would also love to see the removal of red tape for new factories to be buildlt in conjunction with a tariff height for that industry
But they don't produce industry out of thin air where it doesn't exist. All this will do is raise prices. Then likely cost us billions in tariffs when other countries retaliate. Building new factories would take at least a decade, and would require billions in investment that companies have no reason to spend.
so you put a tariff on foreign steel. Domestic steel producers are happy and can jack up prices to be just under the new, higher, foreign steel prices. Steel consumers are upset and lose some percentage of their profit, leading to cost cutting measuers like layoffs. Thousands of jobs are lost from steel consumers. Who won? The owners of domestic steel producers. Who lost? Everyone else.
@@RHCole it's so weird realizing I'm living in multiple movie scripts. Idiocracy, Don't Look Up, what's next? Also a side note: The dude that wrote Don't Look Up is apparently a Trump supporter. So even HE missed out on the story he wrote lol.
I remember the 2018 tariffs on steel. At the water company, we had a few lowest-bidder procurements that were awarded, but materials were not yet purchased. We had to rewrite our contract to allow the 20 percent increase in steel to pass through to us. Otherwise the companies would have rescinded their offer and we would have had to rebid, get a higher price and lose 9 or 12 months project schedule. The effects of tariffs were immediate and obvious. Most steel comes from overseas. Even American companies were passing the cost onto us. I was shocked that I wasn't hearing more stories like ours on the news. We couldn't increase water rates at a whim, so we effectively had like 15 percent less purchasing power overnight. That much less projects we could complete for the public on a fixed budget.
@ohiasdxfcghbljokasdjhnfvaw4ehr great, I'm glad that tariffs would magically create steel mills all around the country to meet the sudden demand. You'd have to invest massively into supporting the growth of the steel industry in the US, but our pres-elect can't think more than three days ahead. ..
@ohiasdxfcghbljokasdjhnfvaw4ehr That would ultimately be worse for everyone. Specializing in specific goods and trading for others increases the total amount of goods that can be produced. This is high school-level economics.
The fact that you claim most steel comes from overseas makes me view everything else you say with extreme skepticism. The vast majority of steel is domestic. Only about 20% of US steel is imported, and the figures continue declining each year.
@@joocebocks8610 My guy that 20% number you are tossing around is just for finished steel. The USA imports an insane amount of raw steel, literally the highest importer of raw steel in the world.
This is petty, but I know someone who supports him and his tariffs and clearly didn't understand how tariffs work. After he won, she celebrated loudly, and I explained how tariffs work. She immedietely got confused, because he himself didn't say that's how it works, and she couldn't fathom the idea of him lying or being wrong. After showing how tariffs work (with evidence and history) she got worried. Then, to be an ass, I said "there is one good thing though", and she asked what it was. I said "Whereas you can't afford it, I can afford it". And then she got really mad at me.
😂 that was petty, but I have to admit, if I was in your shoes, I'd be hard pressed not to do the exact same thing. Some people really wouldn't stop trying to touch a lit stove until they get burned from their efforts.
@@ZombieSandwiches this is how I’ve been feeling lately. Are things going to get more expensive? Yep. Will I be fine? Yep. Am I internally smirking at the incoming implosion of the “can’t afford gas or groceries, inflation is literally k*lling us” party? Also yep.
Friend of mine owns a small export business. He buys goods from small businesses (including mine) and exports them to other markets. About half of what he exports goes to the USA. (we are Canadian) First thing he did when these tariffs were announced he called his customers in Europe and Asia and is negotiating an increase in exports to them! My friend is perfectly willing to not export to the US at all. I mean, he still will, but he will look at easier markets first.
Good for him. It makes perfect sense that he'd look after his business first. Better to prepare now than to get caught off-guard when the tariffs actually happened.
most other countries have a VAT tax, which is far higher. Generally 20% for EU and UK. The goods coming into the US are very little taxed compared with most countries.
The good news about the other countries is that we have many other options. US wants to make it harder and more expensive to sell our good to their people? No worries, shift the plans and sell to other countries to retain as much business as possible. At the end of the day, this will hurt Americans the most. They will have less selection, higher prices and nobody to blame except themselves.
@@MrBattlecharge exactly. My friend says that most of what I sell him goes to either the UK or Australia anyhow. So with regards to me it won't matter. But a lot of his other customers? Definitely will be impacted. I am curious as to how this will all play out. Neither he or I are going to boycott American markets. That would just be foolish. But there is definitely a valid reason right now to be looking overseas for more customers.
0:55 - Chapter 1 - What are tariffs ? 8:15 - Chapter 2 - Protectionism instead of free trade 17:10 - Chapter 3 - Those who cannot remember the past are doomed to repeat it 20:20 - Chapter 4 - But can he do that ? 22:35 - Back to LE 23:10 - Conclusion
Free trade on a global scale can never exist as governments have too much control. Tht is why china was able to get away with exploiting the usa for so long. It's not a free market and never was. The fact americans are crying tht costs will rise is indicative of how dangerous the game is. Fool the citizen, fool the goverment. Tht is democracy.
@andrewjgrimm just watch lol. The Australian doller is going to be worth more than the US doller again. Trump ignoring russia for four years led to ukraine being invaded a second time. Even boris Johnson helped ukraine prepare. Trump shat on our European allies while praising dictators and selling out those that work for us. I.e the saudi coup via his son in law. Trump blackmailed ukraine further weakening our position against russia. You idiots wanted red over democrats you chose red over democracy! You chose epsteins best mate to be your president. Great job
TLDR for those watching: The People who need to hear this will likely never see it, please explain it simply to them, without trying to talk over their heads as a personal "win". 1. Tarrifs are TAXES that AMERICAN companies pay to the government to import goods. 2. A 10% tariff can become a >30% increase in retail prices for goods affected AND goods not affected but adjacent. (%based sales are exponentially scaleable) 3. The only party benefiting from tariffs (outside of those used for defense) is the government. (This single fact is most likely to trigger some of them to actually listen) 4. A large portion of our economy is directly reliant on trade (27% of our gdp!) but a broad trade war can indirectly affect over 60% and cause rampant inflation (as retaliation increases) which affects everyone. 5. Tariffs aggravate other countries NOT because THEY pay a tax, but because less of their products are purchased, causing them to retaliate.
It's kinda strange how every comment on this channel is against trump. Calls tariffs taxes, claims tariffs are bad, then suggest they/ tariffs will benefit every American ( sounds like socialism and how could a trump voter support socialism). I wish legaleagle will do a vid on how defunding the police actually helped taxpayers.
TLDR for those who want the other side of it: Trump is using tariffs as a threat to get what he wants. Mexico just decided to stop all caravans trying to reach the US border hours after Trump threatened a 20% tariff to punish them for allowing the situation. While this video has a lot of accurate information on tariffs, it has zero attempts to be even remotely good-faith and present the other side of the argument. This video is correct if and only if Trump does everything he said in the worst way possible and with no nuance. A lot of hiss threats of tariffs are coupled with demands or complaints and the implication is he will not do them if the problem is fixed.
@osiris7089 nope. Not a dime. If anything it allowed criminals to get away with even more. Only 1 way defunding the police could have worked.. deputise every (legal) gun owner.
The issue is that tariffs generally don't even work in propping up the local economy either. The reality is that we live in a globalized world, and basically every product that exist has some connection to trans-national trade. Even local produce is most likely fertilized with chemicals that were produced somewhere else, meaning that even the local food production will increase in price due to tariffs. And it is also not like it is something new. It is not even that long ago that Brexit has shown what happens to an economy when you suddenly create trade restrictions with your close trading partners. It severely harms domestic production.
They had an effect before Reagan legalized stock buybacks. Before companies had to consider paying the tarrif against upgrading their company model. Now they can pay the cheaper price and pass it 100% along to the consumer.
@@Vohlfied Haven't you watched the video? They literally explained how tariffs lead to the great depression, and only made the situation worse. And that was long before Reagan. It was always a bad idea.
Narrow, focused tariffs can be helpful, especially if they make it harder for countries, like China, to dump specific products at below cost, or protect a very young local industry that needs protection until it can build itself up enough to compete with foreign competitors. General tariffs, on the other hand, are stupidly harmful as described in this video.
"If he just said every non food item in Target would double in price, no one would vote for him" - which is INSANELY ironic given that most of the people I talked to who disliked him but voted for him anyway said they were doing it because "Biden has made everything to expensive". Like you can't make this sht up. The world is insane.
If the intent of the tariffs is to get companies to produce in the US so that they can avoid the tariffs, how long would it generally take for companies to do so?
At least ten years to build the factories, and it would require billions in investment that companies simply have no reason to pay. Far easier to just eat the tariffs and raise prices accordingly.
Prices will still be same because manufacturing in USA ain't cheap. It is the same reason every other company manufactures in China, because it's cheap.
I mean.. for things that are only imported a single time. Some stuff goes back and forth from US to Mexico, adding different parts and processes in different places
@@SigFigNewton Years ago when I was involved in importing goods, we would often import them "in bond" where no duties or taxes was paid until they were sold or re-exported. So, goods going back and forth might enter the country in bond while awaiting further processing before being sent back out of the country.
I think he got the concept right with it compounding, but I was taught that the mark up at the retail end is usually about 3 times the factor gate price, while these numbers were four times - my guess would be distributors have a much lower cost burden that retailers (since they don't have to worry about accessibility and presentation of the product, and have economies of scale in moving multiple products around compared to retailers typically shifting them one at a time). Happy to be corrected if it is about 4 times the price now.
@@neilbiggs1353 It depends on whether you're selling commodity type good like sock and T-shirt or higher end goods like jewellery. But yes, the distributors would have a much lower overhead than the retailers per dollar of sales.
Can’t believe that the man spoke for two minutes, said nothing, but he used enough dog whistles that his crowd understood whatever it is they understood, and then they clapped about it
Maybe it's because I'm Canadian, but when I was like 13 years old, we learned about the trade wars and tariffs between the British empire and the United States that happened way back in the 1800's and how it was detrimental to both economies and that in trade wars, everyone loses.
I literally did a paper in high school (also Canadian) about globalism and trade, and while I'd like to flex I got a perfect 100% on it, remembering it just reminded me of how much stuff the US imports from global markets.
Yeah, but they gloss those over in us history (because they want to teach us about andrew jackson. I'd prefer it if they focused more on the tragedy of the trail of tears, but no they just toot his horn)
On the contrary, in America they lionize the advocates for those tariffs because some prominent free trade advocates were slave owners, and, in Jackson’s case, demonized outside of the Nullification Crisis (which happened because he was willing to compromise on tariff reductions). While it’s important to not let them off the hook for stuff like slavery and the Trail of Tears, the tendency of people to oversimplify and make “heroes” and “villains” means that it’s more of a pendulum swing that glosses over finer details.
I am Canadian and currently living in the US in a republican area. My husband is an accountant for a gas company that imports a good amount of oil from Alberta. The things said about Canada here is insane, why do people think tariffs are a good thing? The oil Sands are mostly owned by 4 Canadian oil companies. Then those 4 Canadian oil companies biggest share holders are American oil companies with the exception of one I think. The imported crude oil goes to American oil refineries for further production, mostly in the Midwest. So it's like US will be sanctioning themselves
Harley-Davidson will not be able to sell any bikes in Europe which will cause them to go under they're already closing stores in England they're going under because of Trump's stupid policies take effect and will make things even worse
@@JoshuaTootellI gritted my teeth and watched the whole thing. It’s terrible but it’s made SLIGHTLY less shitty because ironically he’s not at a rally.
Anyone who listened to that 2 minute rambling and thought "that's a great idea" or "that made sense" should never be allowed to drive, operate heavy machinery, or do any activity that can lead to someone else being hurt due operator stupidity.
Well, you can't take away their ability to breed or vote, so just get your Gatorade ready for your neighbors when they run out of the stuff! They'll need it for their plants! :D
No one listened to it. No one listens to anything. How often do you see regular people fixedly watching and absorbing a piece of media or news footage instead of scrolling mindlessly on their phone? The public is broken. Critical thinking and concentration are just gone.
This election taught me that people’s perception of something is more important than what the thing actually is. I was so foolish thinking people cared about how stuff works. Most people care about how stuff works in their own orbit. Like a plumber needs to know stuff related to plumbing, but doesn’t really need to know about the economic impacts of short term interest rate changes even if it would be helpful to know said information. My mother in law voted for Trump because she believes that other countries pay the tariffs to us even after hearing 50 times they don’t. She just knows china pays them regardless of any proof otherwise. It’s like, I love her of course but like…it’s hard to have a grounded conversation about something in reality when you KNOW the other person doesn’t care about what they’re even saying. Like if I know you have no idea how literally anything in the economy works why am I talking to you about “what the fed is doing”. It just makes me not want to talk about literally anything because the thought of you not even remotely processing what I’m saying…where does it bleed into besides this one thing?
Yeah, the whole "facts don't care about your feelings?" They only meant YOUR feelings. Facts obviously care about their feelings though (or vice versa) LOL.
I understand where you're coming from and have similar experiences with my own family. We just talk about non-politics stuff instead. They do still listen and care about most of the stuff I say. They are interested in my life and want the best for me. They just have a severe lack of comprehension, a complete mental block, when it comes to politics because of decades of brain washing from right wing propaganda.
There is where there the first amendment is maybe the most damaging in the constitution. The intent of it was wonderful, protecting citizens from reprisals when they call out the government. The unfortunate thing is that there is no mechanism to stop powerful people from lying. Look at the Jack Smith filing in the DC Election Interference case where he explicitly had to state that Trump had the right to lie about problems in the election. In this case, who can force Fox News and other parts of the echo chamber to make sure these people get a true understanding about tariffs from sources they trust? Fox didn't even air anything on their own channel about paying $787m in damages about their lies. At some point, we have to reckon with the concept of Freedom Of Truth (or at least honest debate) vs absolute Freedom Of Speech
These people are literally brainwashed because they make politics and "owning the libs" their identity. To admit that they don't understand the economy is to admit that they feel powerless and do not have a strong sense of self without the narrative that they're special enough to see the truth and the rest of us are sheeple. Their brain will actively shut down to the things you are saying to them on these topics to protect them because they're scared and are thrown in to fight/flight mode. Have struggled with it so much in my own family and there's not much you can do beyond never talking about politics until they're at a point they start to question it themselves.
Oh, the facts do matter and when these people get hit by reality when the economy plummets, you can at least take pleasure in gloating about being right.
This is a great video that large population of Americans do not understand. I’m very certain good amount will still ignore this video calling it false information.
@@dariyanvalentine3564too many instances of people blaming the problems they have on the other party, regardless of who actually caused it (yes it goes both ways, it just happens to be one specific one mist of the time)
It's astounding how many people don't understand the most basic parts of the economy... and then need a lawyer to act as an economist to explain it to them.
Its also shockingly alarming that an "influencer lawyer" might have more public/political standing and rapport to get enough people to listen when actual Fiduciary personnel have been warning us all along the way.
Lawyers are trained to be argumentative public speakers (win trial by convincing 6-12 dumb randos on a complicated thing) while economists are trained to write articles for each other
@@guilliamlille6123 That is regrettably accurate for the economics dweebs out there. This whole time they could have been paid lawyer money to make more convincing arguments.
What is more shocking is the fact that many of the guys defending tariffs also say they are pro capitalism and hate socialism, well... Adam Smith hated tariffs, the damn author of the wealth of nations. And I remember that in 2016 Marco Rubio was celebrating the 200 years anniversary of that damn book, without even reading it at all
The great depression was caused by lack of regulation by banks and wall street. Even without the smoot hawley tariff there still would have been the great depression. In fact it might have made the great depression worse abroad, as the market would have been more interconnected. The glass steagall act and similar policies were necessary to solve the depression, remember the vast majority of economists agree the groundwork for the 2008 crisis was caused by repealing the glass steagall act. Also tariffs are not perfectly elastic. A 1% tariff does not equal an exact 1% increase in price. Especially when you take into account things like automation which can get rid of the necessity of cheap labor.
It's so interesting that the citizens of the country that emphasizes free market capitalism so much, don't understand neither markets nor capitalism. Or freedom.
@@osiris7089 Anyone thinking that the tariffs worked the way Trump said, as pointed out in the video. People don't understand that tariffs are paid by the company imposing them, not by the foreign countries. They also don't understand that making things more expensive for producers results in that cost being passed on to consumers. They also don't realize that the increase in prices of foreign goods won't make American goods more desirable because the American companies will just increase their prices to match, making more money for the shareholders of those companies. They also don't realize the ripple effects of how costs of oil, microchips, wood, grain, and other imports results in increases of prices for all other goods. They also don't realize how the cost of purchasing these basic goods is a large part of their own income, but a small part of the income for the rich, therefore being a tax primarily on the lower and middle classes, while making rich shareholders richer because they can increase their profit margins. They also don't realize that the actual one possibly decent outcome of tariffs - that it encourages more production from within the US - takes a very long time to catch up, while in the meantime we all just pay those tariffs ourselves as we continue to rely on imported goods. Lastly, that it's not always possible for the US to make these things locally - they don't have the raw resources that are being mined or grown and used, which is why they have to import them. And as for freedom, they don't realize that tariffs are a way for the government to control the markets, trying to dissuade foreign imports and artificially inflating the cost of those goods. This is in opposition to free market "laissez faire" capitalism where producers and consumers come to whatever arrangement is most efficient and best for both parties (in theory). Those same people would normally denounce such government intervention as "communism".
14:02 "Who's gonna be too bothered by 6/10ths of a cent?" As someone who works with a lot of overseas customers, some of them get VERY ANGRY about even hundredths-of-a-cent price increases. It's annoying and petty, and YES they will either demand the price be changed to match their expectations or they just refuse to pay the invoice.
They also can REFUSE to buy the product. A car has a hell of a lot more steel than a tin can(so the price will go higher)-trouble is for the manufacturer is: that I do not NEED a NEW CAR. I will still buy Asian over Domestic builds just because THEY ARE BETTER. So raise the price on foreign cars & domestic prices will be right behind them. . I am guessing that applies to oil & gas too(as MOST of the U.S. gets MOST of its oil & gas from Overseas. (You might have heard of Saudis Arabia, Iraq, Iran, UAE, Canada. Afghanistan (it doesn't have any oil as it is on a mountain of granite essentially) . . Just so you know what Donnie plans to "eff up" Guess they are either going to horse & wagon or Electric....or walk. Definitely not electric golf carts. Snow tires for them are outrageous. Oh, did I mention shoes. They are made overseas too. Portugal, Spain, France, GB, India, Japan, China, Mexico, and I am not going to name all +100 countries that EXPORT TO THE U.S. and to each other. They will not have an issue. Just making more work for U.S. Customs at the border. Think of U.S. border going all around the U.S. - so Pacific Ocean & Atlantic Ocean. Mexico is a small land crossing yet they are bringing in $Billions of fentanyl into the U.S. (instead of it being Made in the U.S. by big Pharma (who invented the stuff) or a backyard garage brews this like you would a coffee. It is only CHEMISTRY. . I did not know the U.S. grew bananas or coffee or tea or sugar cane....or spices or nuts except maybe peanut, walnut, hazelnut, cashews? Then there is your "I know everything politician" just proving he don't know anything...you grow a lot of them NUTS.
A Tariff is only a good idea if you, the government, have absolute control over imports and exports of a specific area. Like a colony. However, this is the best case scenario, and even that whole process ended with a little thing called the American Revolution.
bruh what thats not how tariffs work. Consumers pay for the tariffs when imported. Yes the chinese exporters will end up eating the $12 tariff because his whole idea is to incentives companies to movve production to america to make more jobs etc etc.
That's not quite what's meant. When Britain had an empire, it totally controlled it's colonies, thus it could impose tariffs on imports to Canada, India, Australia etc. from nations outside the empire. This was good for British manufacturers who could export and import tariff free making their products much more competitivel and the colonies were effectively forced to trade only with Britain or with other British colonies. It was less good for people in Canada, India, Australia etc. because there was no effective competition so price were relatively high. The United States aren't in the same situation since they don't control other countries/ territories who can trade freely between themselves and could take advantage of surpluses that would normally go to the US, but are not traded because high tariff suppress demand there: Europe for example might be getting a load of discounted Nike's soon( technically the US does in effect have colonies, but that makes no difference here)
@@3AnxiousFerretsInATrenchcoat this comment of yours is a good example of a typical bad faith argumentation style which have been widely used during the american election debates. Your stupid will be studied further.
This is the ironic thing regarding food costs and "American-made goods"; if you want something local, you _have_ to pay more for it because locally the minimum standards of living are higher. It's not just a difference in price at the consumer level, it's also a decrease in goods imported as a result of less sales happening and therefore less profit being made. So it's better for companies to continue to sell in the regions where tariffs are more manageable or non-existent.
@@esteemedmortal5917 ok but this video acts like everyone is dumb and everyone who voted for it thinks it means someone else will pay. No, I want locally produced goods to be able to be potentially more competitive with cheap foreign produced goods. Why is it not OK that that’s what I want to see? Why is everyone so OK with cheap foreign made goods heavily made by exploiting the labor market in foreign places?
I thought tarrifs were super basic civics (like 7th grade level) but apparently we have people deciding who's in charge of the country who don't even know that tariffs on on the consumer to pay and not the supplier...
So many Americans, myself included, already live paycheck to paycheck. What are we supposed to do when prices go up even more, and many of us lose our jobs because the company can't afford to pay us (at least without sacrificing the pay of the CEO)? Rely on unemployment benefits that will probably also be cut? "Pick ourselves up by our bootstraps?"
Band together to form a community? Some of the ideas for that are shared housing, start victory gardens, share skills and knowledge like sewing, foraging, and cooking among each other (time banking is one of the ways to manage it). I mean, before the era of modern countries, the people that humans rely on are their community and the people in it.
@Marewig "the solution to avoid living in a third world country is to live in a third world society!" Magats will do everything except admit that they're wrong
Construction ground to a halt because builders honestly couldn't give quotes - they wouldn't know if that steel for your garage that was $5000 today wasn't gonna be $12,000 next Tuesday when you decided to build it. Builders were giving 24 hour quotes - as in quotes good for only 24 hours.
The only time a tariff or import tax is beniefecial is when it can equalizes the cost of making goods here in the USA. If Nike can create a shoe in the US for $20 then the tariff on the import shoe is equal to the domestic one. The manufacturer in China has lower labor costs than the manufacturer in the US so they can offer the shoe at a lower cost. The tariff would raise the price of the shoe but it would also create jobs for Americans to manufacture shoes.
No it won't. Building the necessary factories in the US would take at least 10 years and billions in investments that companies have no reason to make. Instead they'll eat the tariff and raise their prices accordingly.
Danish "words" don't actually mean anything, they are just guttural sounds used to get each other's attention while they are feeding or reproducing or just living in their daily squalor.
What's really sad is that a lot people didn't "fall for it", they consciously want someone to break the government because it does nothing for them (in their pov anyway). Kamala was too arrogant and offered no real policy alternatives, it was just status quo from her and that campaign strategy cost us big time. 4 more years of grievance politics and illogical policy decisions... very, very sad state of affairs. Democrats should've ran Bernie Sanders, but, the donors would never allow that... wealthy democrat donors would rather have Trump than Bernie.
To be fair, Democrats didn't offer any real change. Other then vote for us, we're not the other guy. Trump was selling "change", be it a lie or true is mute.
A friend told me this week he favors tariffs because the national deficit is his greatest concern and tariffs are a tax, that conceptually will increase government revenue. If this were to occur, that means Trump is going to increase taxes. Though he said the opposite. Gee, I’m so glad I believe everything Trump says. (of course when he contradicts himself within 30 seconds, it gives me a headache.)
Trump: campaigns on lowering prices, actually raises them. Campaigns on peace, hires a full cabinet of warmongers. Campaigns on ending the situation in Ukraine, signs off on Biden using long range, but at least he's certain to stop the invaders, right? Because if a low income American like me isn't getting thousands per month and a free house, nobody should get it.
let's also remember that the US deficit is broadly caused by the astonishingly small amount of taxes corporations pay and tariffs will have ABSOLUTELY zero affect on intellectual jobs that have and will continue to be shipped overseas. Instead, let's further increase our deficit by doubling down on corporate tax cuts and blame immigrants for taking jobs that were already shipped out of the country.
I explained Tariffs to a particularly economically illiterate friend like this: Imagine you want to buy a 2nd hand car from me - and I say I will accept 10k dollars, and you agree that is in your budget. Then the government says there is a 25% tariff, meaning the car needs to be sold at 12.5k. I refuse to pay the 2.5k since I would then be selling the car at a loss vs what I could sell it for elsewhere e.g. 9k to someone in Canada where there will be no tariff - so I only lose out on 1k. You now have to choose to buy the car for 10k and pay the government 2.5k - OR - try to find another seller of 2nd hand cars that isn't charged that tax. If there are no other people able to sell you a non-tariff car - bam - you are SOL and have to pay the government 2.5k to buy my car or I will sell it to someone else. This is the situation for most overseas goods if there is no other seller who won't be taxed. The only way I will pay the tariff in order to sell my car is if I have no other options for buyers, or, I can somehow strip the car down to make it only worth 7.5k instead 😂
Don't plan on Canada buying your car as it does not meet Canadian Safety standards, so you are stuck with that P.O.S., so your car is already sub-standard.
Yeah this makes no sense and has no correlation to this scenario. The whole point is to increase goods being created and sold here, to each other. So your point is backwards which defeats the purpose. I don't think you fully understand this situation because morons like this channel over simplify it by using too many "analogies" and "examples". All of which have context people don't talk about. I suggest instead of writing such an ironic paragraph (considering you called someone illiterate on a financial subject) you go around your community and make an actual difference. You will then have a better understanding of the way things truly work. Stop letting these morons in front of a camera control your brain.
@@2xDeacon No you won't , there are 2 kinds of oil. 1) the traditional black 2) the oil from fracking (atm 60% of all USA drilled oil) refineries in the usa can only refine nmbr 1 , that is why you stil import so much oil. The fracking oil is sold to other countries. If you want to change that than you need to build new refineries and that would push up the price. And if not, Johnpublic is correct if trump go ahead with his tarifs So in both scenario prices will go up! lol if it was up to Musk oil prices would dubbele or triple for regular people to promote tesla (ev) driving.
@DoubleDDeacon Really? And the meat you buy Kroger they just create, right? You should read where US energy comes from, and it ain't pipes. It's Alberta. But don't let facts get in the way. lol.
Remember how we saw inflation that calmed down in 2022, but companies like Coke and Pepsi kept raising prices because "consumers are willing to pay more." Well, that's going to continue to get worse, especially since we have three major soda companies, two kitchen and bath cleaner and baby product companies, only a small handful of companies have a monopoly on 90% of the products in Kroger, Walmart, Publix, etc.
I've been working in consumer goods for years. Cost of Goods (COGS) is a *major* concern to companies. They *WILL* increase cost to consumers, to cover COGS.
@@kokodoritos8577 But far too many voters don't realize that means increased costs go on to them, not on to the companies and their shareholders. They think they are screwing over the big guys, but they are really only screwing themselves.
The problem is, the people who actually need to hear this and gain the knowledge are those most unlikely to sit through this excellently presented discussion.
Their too busy being feed pro Trump or republican propagandists either Fox news or independent media online who want their viewers to in an eco camber
At least our echos are based in fact. 😊
@@elizabethperkins5555more like we have echoes with a lot of bass
They'll figure it out at their local Walmarts real soon. Don't worry
Doesn't matter. Those are the people who will go through any mental contortions necessary to shift blame to anyone except Trump.
This election cycle made me realize that just because I paid attention in school, it doesn’t mean others did lmao
Paid attention*
I support what you’re saying but wanted to point that out before an uneducated idiot uses it as ammunition to respond to you
Have you really *paid* enough attention?
@@flxsemiwhat a nothing-burger of a question.
Right? I didnt know you could skip law school and still call yourself Legal Eagle
@@flxsemi have you.
Just like how Mexico was never going to pay for the wall, other countries don't pay for tariffs. I have had to explain this to quite a number of my family members and it gets more and more depressing. Misinformation is so dangerous, and media companies are not doing enough to combat it due to how isolated people are in news bubbles when they only look at sources that are aligned with their existing beliefs. They have no concept of just how biased they are.
Well other countries will be harmed, but so will the US.
No, this is exclusively a right-wing media circuit issue which constantly tells lies. Conservatives just go along with whatever Trump says.
The left/liberals are not as cohesive and generally hold each other accountable.
I'm not biased!! You're biased!
@@nctpti2073 Other countries will benefit by taking what used to be US market share. Whatever market share we lose from this won't be coming back, the rest of the world doesn't have an interest in our future... especially now that we've pissed pretty much everyone else off. I really hope congress can come together and veto any extreme tariff policies. Future generations will feel this more than we will.
@@crispychrissy I think what he, fuzzily, imagined in his head was this (And I would like to point out that I’m trying to guess the inside of Trump’s brain here, so this is neither my opinion nor correct: “China is currently subsidising goods that are exported, e.g. E-Cars. This means these goods are sold in the US market below their production costs. If the US tariffs them exactly to the price they would have had without the Chinese subsidies, the Chinese government is paying for the tariffs.”
Now, apart from the fact that e-cars are a very specific and narrow lane of goods, and almost all products imported into the US do not benefit from subsidies, this logic ONLY works if the tariffs have zero impact on consumer behaviour, and in that case, the end result is STILL that the price tag for the goods is higher than it were if the government did nothing.
I want a bumper sticker that says "YOU VOTED FOR KING TARIFF WITHOUT KNOWING HOW TARIFFS WORK"
Incorrect. The Smoot-Hawley Tariff Act exacerbated the Great Depression, which had already begun. President Trump's tariffs are a negotiating tactic aimed at securing more favorable trade agreements. For instance, Japan's 15.5% tariff on US goods hardly constitutes fair trade.
Time to print up shirts
the leopards eating faces party
China can make them
@@HoangDoge235 lol, tell me you didn't watch the video without telling me you didn't watch the video.
can't wait for taxes to decrease.... by increasing prices.... dramatically.... on pretty much everything.... by increasing taxes....
The capital class will make out like the bandits they all are.
It's Brexit all over again. Seriously, I give up on the human race, most of it is too stupid and wilfully ignorant to care about.
Well, when the economy crashes and has to rebuild from the ground up... the prices will drop😂
Thats is like how people are like omg trump gonna get rid of income tax... thats nice... uncle sam will want it later
For real dude, I wanted to move out within the first 3 months of next year, since I got a new job that pays me much better than my last job. Even so, I'm really worried that the cost of living will go up and make it to where my extra pay means nothing and I have to spend, yet another year, at my parent's house.
Fun fact, companies often raise their prices _in anticipation of_ tariffs so they dont have to raise prices 20% at once, but 10% twice instead, to avoid shocking their suppliers.
So inflation might rise just by the sheer mention of tariffs, because companies get spooked.
Anyone who knows a little of economic history knows that speculation runs rampant! People would gladly complain about cigarette prices, which were high _because_ the profiteers needed to ensure they made bank on sales. That's nothing to say of domestic policies which subsidized food growers (though only for-profit ones exist), which lead them to selling to developing countries... Of course developing nations didn't have the productivity or subsidies to lower the cost, which put local farmers out of business. Cue starvation and economic depression when a 10% increasing in actual cost lead to a 30% increase in final cost, because of course the profit-seekers wanted to reduce their risk of not making money. Protectionism resulting in consolidation and an economic spiral are the most common end-game for the people who aren't up to defending their dignity, and Americans clearly will not fight against the rich.
And they never seem to go back down afterwards if not
We’re already seeing this in way of electronic components and import foods like fruit. So great to know this is just a peek into how awful this is going to get
And maybe they'll raise by 10% thrice, because it'll be the perfect excuse to drag more money.
And that already happened the day after the elections, with companies canceling Xmas bonuses to fund the purchase of extra materials ahead of the expected tariffs.
Tariffs during the first Trump administration caused major issues for steel purchases with my local family owned hardware store (competitor to big names). The existing steel vendors had to move to US steel, which did not have the supply to meet demand.
Many of the customers complained that they couldn't finish their projects when steel was unavailable, and that the prices had jumped way too much.
Ironically, the major customers were people who wanted him to do this.
Yeah those major businesses can buy enough product and push you out of business. Then control the market and raise prices to whatever they want because nobody can undercut them
Therein lies the rub. Tariffs do work under a very narrow set of circumstances and for a very narrow goal, namely to level prices when there is an ample and adequate domestic supply of the same type of goods that is more pricey than the imports, e.g. the auto industry back in the 1980s. There is no other application except as a straight up sales tax.
@@iamcxd9782 This is what the republican politicians want. They want to push small businesses out of business so the big corporations are happy and give them more money.
Tariffs do 2 things. Increase cost for consumers or force small businesses to fail because they cant afford the initial increased cost before passing it back to consumers. Making it easier for Trumps people to swoop in and buy that business for pennies on the dollar.
Trumps first tariffs cause the most bankruptcies in farmers ever. I believe it was something like 545 folded in the 1st year.
This is because steel manufacturing for a large part was destroyed because of everything moving overseas. Bring it back and you will have supply, not a crazy idea.
I have literally been dealing with someone who's been arguing that it is super easy to shift vendors for products and won't cost tons of money. I have had to point out that shifting vendors means researching them, negotiating contracts (possibly breaking out of old ones and paying fines too), reworking the transportation system to ensure product, and more. (In a best case where there is already factories, materials and labor lined up.) Like, I cannot emphasize enough that tariffs don't help and the idea of "just move your business out of that country" is not the cure all.
Try arguing with someone who thinks by imposing tariffs, companies outside of the US will race one another to bring their manufacture to the US to circumvent the tariffs, and that will lead to more employment, cheaper product, etc.
People discovering that tariffs are tax is the funniest thing to me as a protuguese speaker, because we don't even have a word for tariff-we just call it import tax.
We used to call them import taxes, but I guess tariff was a cooler buzzword.
I’ve always assumed that hiding the fact that they’re a tax is why the word tariff exists.
Enormously regressive tax. How to get voters on board with a tax that is paid for more by the working class than by the class that has all of the wealth.
Well, we have “tarifa”, but it’s only used for stuff like energy bills, never imported goods and it doesn’t substitute the word “tax”.
As Chinese, we Chinese will not create a completely new incomprehensible word based for modern stuff.
For example, the computer is called the "electric brain", the light is called the "electric lantern", and the phone is called the "hand machine".
Therefore, the Chinese word for "tarrif" is "customs tax". When I sell fabrics to Americans, it is the American buyers who pay the 25% tariff to the Los Angeles Customs.
Isn't this common sense? Such a simple international trade rule, Americans don't understand, even debate? Aren't you a capitalist country?
Can’t believe the guy who declared bankruptcy six times managed to convince an entire country he has flawless economic policies.
No one has flawless economic policies, just imperfect ones.
The voted for him because he managed to get away with these 6 times of bankruptcy. They want a crook to lead the country because they believe a crook will steal for them.... oh he will steal, he will steal from everybody.
It's simple
- What's good for business is good for the country.
- The most profitable thing to manufacture is scarcity.
- Therefore, the country is prosperous when there is a shortage of everything.
@@BaddeJimmeUSSR called, they want the economist who lives in your attic back.
The other person raised over a billion dollars in campaign funds and still ended up 20 mil in debt so we were screwed either way
So the first Trump presidency is what inspired me to minor in economics while I was going for my electrical engineering degree. Most of my extended family works in manufacturing or as farmers, and the first Trump trade war nearly bankrupted several of them. I decided I wanted to learn economics to learn the precise mechanism that led to my aunt and uncle losing their farm. Now we’re looking down the barrel of another Trump presidency and now it’s a question of will we be hit by a recession or a full on depression
Careful brother. . .going to school. . .educating yourself. If you're not careful, you might become one of those academic liberal types with a good head on your shoulders. . .
@@Strider91not all farmers are republican. Some finished primary school.
And this time, the barrel is not a 9 mm pistol. It is a 155 mm howitzer.
Add in deporting somewhere between 5M and 30M immigrants at the same time, and I have no clue how we avoid a massive depression and food insecurity.
Help yourself and the people close to you first, and don't mind the idiots around. There's no other outlook than "batten down the hatches" for the next four years, especially if other countries starts applying counter tariffs to US farm products. The earlier the preparation starts, the better. Good luck and godspeed.
If tariffs were the only thing it would be a recession. Throw deportations in the mix and it heightens the risk of a depression.
Once prices go up, they don’t come back down.
bingo. This is actual core economic knowlegde. You don't get reverse inflation, which has it's own name: deflation. At least usually, for most things (only electronics).
Spot on, Any large cooperation that can suddenly make their product for cheaper is certainly not selling it for cheaper.. they now just make more money whilst the public is none the wiser!
@@OhNotThat Only if the system crashes and nobody is buying, which would be extremely bad for everyone.
i wish we could go back to the days where the people in charge of the companies had names and addresses people could storm.. these ppl really need reminding that we're not just numbers underneath them i think.
@@piki2pikachuthat healthcare ceo just got the message lol
As a former customs specialist and current PhD student in supply chain & information systems, who is doing supply base complexity research regarding the 2018 tariffs, this video is largely spot-on. I just have two notes. First, tariffs are not necessarily always detrimental, if some core criteria are followed: a) they are extremely targeted (i.e. not blanket tariffs) b) they have a far-off implementation date (so firms can prepare) c) they are incremental (again, so firms can prepare) and d) they are only enacted after a serious engagement with relevant industries and experts to head off unintended impacts. The 2018 tariffs followed ZERO of these criteria, and the proposed tariffs are also expected to follow ZERO of these criteria. I cannot understate how bad this will be for our economy given the devastation that the 2018 steel/aluminum tariffs had plus the fact that the proposed tariffs are far, far, far more expansive.
Second, the situation is actually far more dire than what this video alleges -- this is understandable, there's only so much you can fit into a 20-30 minute segment. The 2018 tariffs had a ton of exemptions for select firms, a necessity since the timeframe between the tariff proposal and enactment was a mere 3 weeks, and firms could not possibly onshore in time. But which firms got those exemptions? Firms with connections to the trump administration. This is laying the groundwork for a hotbed of corruption and cronyism.This will also induce fraud as firms - in a fit of desperation - try to reclassify their imports' country of origin and/or material components (this is alleged to have happened in 2018-2019, with Vietnam and other SE Asian countries suddenly exporting gargantuan quantities of steel despite their local production infrastructure not seemingly able to support this), and with the Customs & Border Patrol already understaffed & underfunded, they will not be able to handle a proportionate increase in investigations or audits. Not to make too fine of a point on this, but all of this will (obviously) in no way help the American consumer.
ETA one more point: the type of research I do primarily focuses on sourcing. There are so many diverse minerals and materials used in thousands of products that we use everyday, some of which can only be procured from select regions around the world. Even if you fully onshore as much as you can, there's no getting around the fact that some materials *MUST* be imported because they literally do not exist within US borders. So, no, there's literally no way of fully getting around increased product prices as a result of tariffs, even if the trump administration gets everything it (supposedly) wants.
I appreciate the thorough breakdown
Wow. Thank you very much for this added insight. I’m in Australia and our dollar plummeted yesterday following the mere mention of tariffs. This is going to have a MASSIVE ripple effect in every trading nation. Buckle up!
Bet you have thought about antimony a few times. We do have it in the US but not nearly enough to satisfy our use. I think we still import over 80% of what we use.
Sad to say, but anyone that wouldn't already agree with you, likely were scared off when you said you were educated. That group can't trust anyone that is educated, gets really close to people trusting science :P
Thank you so much for this comment!
Something this doesn't cover, which I keep bringing up because it isn't getting enough coverage, is that these tariffs hurt small businesses far more than large corporations, and will drive some of them out of business.
Depressingly, Trump and his billionaire friends probably think that's a neat side effect.
Found out the other day that it is possible to apply for exemptions for some tariffs. The big companies are more likely to do that as well.
thats the point gotta make the billionaires another billion or two
capitalism is designs to hurt small businesses and help large businesses. it's designed to benefit those with capital. it's designed to expand wealth, not distribute it.
@@MorbidEel I can't even imagine the red tape involved in that especially if you don't have 100 high priced lawyers on retainer.
Love how trump just stumbled through that entire child care speech, making absolutely 0 sense, realized he wasnt making any sense, then said MAKE AMERICA GREAT AGAIN and his cronies all start clapping
shows how stupid they all are
Like any of his "speeches", just incoherent rambling with repeating sentences.
i thinking secretly trump said make America worst again
right like its giving that one scene from legend of korra after bolin becomes famous and gives a speech to the arena
@@moneybilla not as stupid as yall for voting in a cadaver for a president.
We literally had the boston tea party BECAUSE of tarrifs.
Don't tell the Patriots this 😅
No we had a tea party because the ocean was thirsty for tea.
I thought it was because we were paying a government backed monopoly who has the preverse incentive to tax us indefiitely, for a profit.
Didn't even pay attention to tarrifs in class and I knew taxes like this were bad
Yes you’re right! “No taxation without representation.”
Durring and before the first trump presidency i ran a small Blacksmithy out of my own home. the steel tariff Forced me to shut down my business because i couldn't afford steel anymore. Why? because when the prices of Chinese steel went up American steel rose to meet it within about 15 cents per pound and American steel executives just pocketed the difference. Whats worse is that while Stainless steel prices returned to almost normal High Carbon, Medium Carbon, and Tool steel prices only dropped about 50% of what they had risen to effectively putting my business and many other small smithies like me permanently out and lowering the amount of steel jobs. just not jobs that were looked at in the steelworkers census.
God, That sounds awful to deal with.
And guess who gave millions of dollars to trump? His rich white ceo buddies
Yeah it seems like even some “made in USA” products are going to go away after these tariffs since they need foreign materials. But the GOP will just blame Biden for 4 years anyways
And yet Korean steal is the best and for the quality it has always been fairly priced.
Depending on yiur facility and how much needed a couple dozen methheads could have gotten you 2 or 3 tons of scrap cold rolled steal a night. For cheap
Just after the elections people googled "how tariff work?" & "what are tariffs?" awfully reminiscent of "what is brexit?" & "what does the EU do?"
YOU ARE MEANT TO GOOGLE THIS SHIT BEFORE YOU VOTE ON IT NOT AFTER!
To be fair, there is a question on who is doing the googling, it's not necessarily the people who voted for whatever. There no reason why it wouldn't be from people expecting to win who are now looking up the consequences of defeat, beyond a degree of hubris of considering their own side more informed than the other. It may even be coming from the non-voters which is a different concern
Its mind blowing how we havent had a complete revolution decades ago.
You assume google tells them the truth and not what they want to hear because they provide search results for profit and not to validly inform anyone of anything.
The major issue of elections these days is people are googling their own bias in a question, an algorithm provides them results they make "like" aka "pay for in some manner" and they get emotionally reinforced by what by all criteria is propaganda or if you're a bit cautious with such words because you think completely falsely screaming about immigrants eating pets is "just" misinformation... it's at minimum marketing... whose only goal whatsoever is to get your sale by any means necessary with minimal exception and nearly zero accountability. While choosing between paper towels is fine for this kind of BS... choosing how to address an extreme societal resource dilemma in the most efficient and effective way possible that aids anyone disadvantaged by such a transition and is deeply rooted in human rights and dignity... should be a much more involved decision. Where we are at is way worse than people understand and we're losing time to decide how to bolster our healthcare food, water and housing rights as our biosphere shift truly changes our lives.
But instead we get the old white guy pretending he has a big magic wand and it's gonna fix all our problems.
I personally looked it up to find a link to provide to people who cluelessly think tariffs are something different than what they actually are. Needless to say, I had to provide the link dozens of times already.
@@neilbiggs1353 Thank you, exactly. It's not necessarily "what did I vote for", it could be more like, "How much damage could this thing I voted against do?"
Frankly this whole "LOL stoopid voters" narrative is sounding very anti-democratic - like an unsubtle push of "tyranny of the majority", the idea that the general public are too dumb to decide their leader.
Another problem with tariffs - especially to Mexico - is that components often go back and forth multiple times. So car parts might go from Mexico to the US (+tariff) for processing. Then, back to Mexico. Then, back to the US (+tariff).
Repeat that a few times and prices could jump a huge amount.
and many companies are going to deicide the best solution to that problem is to move everything to the cheaper country and only have to deal with the tariff once.
@@sfsin3380So then that will be taking even MORE jobs out of America! It's starting to sound like tactless tariffs are pretty much the worst thing you can do to an economy :o
@@Zuzu00000 Except when you get all undocumented immigrants doing the work in your country for less than minimum wage. Or inmates of private prisons.
@@Zuzu00000they’re good for specific companies execs and shareholders. Lobbyist lobbyist lobbyist says that tariffs are good, actually.
What's next - Cartel's smuggling American made cars across the boarder? If demand and cost calls for it, right?
People that thinking a manufacturer is going to decrease it's profit to pay a tariff instead of puting it into the price for consumer to pay are absolutely insane
In my country there are huge 200-350% import Tax or tarrif on cars. I can assure you that we pay for that, not the countries we import it from.
Has your country been a leader in car innovation?
Historically, tariffs put the country behind technologically because their companies no longer have to compete with he rest of the world.
Singapore?
@SigFigNewton lol....Nope, we have to pay it no matter what
American cars are built badly and can't compete
Already failed.
Is it a small country with good public transportation infrastructure? Because in that case it might kind of make sense.
The worst part is that the more people tell Trump that tariffs are dumb and a bad idea, the more he'll double down and insist on doing them.
But that's how a child would act, not a grown up man! I mean... Well actually... Never mind, carry on...
because trump is a spoiled brat who was never told no by mommy and daddy
He knows it's bad, he's doing it because he's corrupt and doing it benefits him at the expense of the country
@@Shade01982 Cry about it
@@followontop Grow up about it.
11:00 "Complicated isn't necessarily bad, some problems just ARE complicated. And promising that you can simply wave a magic wand and fix those problems with one weird simple economic trick is a lie." This, in a nutshell, sums up so much of what is backwards about this upcoming Presidency
Nothing backwards about making america great again
You are correct, but simple truisms are what stick to the populace.
America needs to go backwards
BEFORE it can forward. We need to fix the damage done.
"Economists HATE this one weird trick, FIXES the economy, CLICK NOW"
and some of our fellow americans...("undecided voters" included)
I've been procrastinating this entire year buying a replacement for my 20 year old Kitchen Aid dishwasher. Looks like my Christmas present to myself will be under the tree next week.
Getting myself a new phone and my family is doing the same too. Might as well get smth SOMEWHAT updated with a phone case thrown in
In today's news:
'I never thought leopards would eat MY face,' sobs woman who voted for the Leopards Eating People's Faces Party.
A classic
This makes me laugh every time.
“Slugs for Salt” is a classic
@@roscoeorginal 🤣🤣🤣🤣
@@roscoeorginal Snowmen for climate change could be another
6:00 I'm fully convinced that the majority of his supporters don't even listen to him talk. I'm pretty sure that they get all their info about his speeches from other talking heads because this absolute word vomit was mind numbing.
"Biden raised my taxes" my mother said, as she complained about how high her taxes were as she filed her 2020 taxes.
People are actually clueless, human nature is to see a problem and associate it with something they already don't like even if its obvious if you step back and think about it.
either they're too deep in the rabbit hole to get out of their bubble, or they're deaf. I don't know how you could vote for someone who actively, and blatantly talks about defunding the necessities that you and your children depend on, even with the tariffs.
The only thing Trump is good at is confusing people with his convoluted answers, and that is sadly helping him.
That implies that these people even have a mind to numb
I skipped it in this video. But then, I'm not one of his supporters. (And I couldn't legally vote for him anyway, because I'm British.)
Thank you. When I heard Tump babble about tariffs I said "Thats not how tariffs work". He wants to jack up the price for everything. The us company importing the product pays the bill. Lets say Target wanted to order a Nintendo Switch from Japan. Because their is a tarrif on their product Target would have to pay extra for the product, Target would then raise the price, and then the customer would pay more. The idea is to encourage people to buy American products. That doesn't work because many us companies buy material form overseas and will have to raise their prices. Out of season fruit and vegetables come from other countries so the price of those will go up too.
Then let them eat corn
@@persona189blank6😂
"The distributor pays the tax, not the customer" is the same insane troll logic the Seattle city council used to try and justify the sugared beverage tax in 2018.
(edit: While I stand by the above statement, that the Seattle city council wouldn't be able to pass Econ 101 at any community college, my further rants about the tax's impact were shown false downthread and I've redacted them.)
Also, retailers tend to put the price up by more than the amount that covers their increased cost
So if that Nintendo Switch is costing Target 10% more, they put the price up 20% because they know the average customer isn't going to look that closely at the actual numbers and will just blame it all on the tariff, so the retailer can actually increase their profit margin* while blaming everything on someone else
* The profit margin per item increases but they'll sell fewer units so the effect on their bottom line is more complicated
It's a bad situation for everyone but I'd guess it's slightly less bad if you're the CEO of a massive retail chain
Pretty sure he knows tariffs better than you.
So basically, if you are a country that imports 80% of your consumer goods, you should not put tariffs on those same consumer goods, specially if you dont have an industry that produces those goods.
Yes. Tariffs can be effective at protecting domestic industry from foreign competition, but there's no point if said domestic industry doesn't exist in the first place.
Bingo. This is a rug pull solution, prices will hike because Trump is effectively forcing U.S companies to buy American, and when they can't do that, they must pay the U.s gov a tarrif fee
So, people voted Tr*mp in because they wanted cheaper groceries and fuel. I actually think they believe that their prices are going to instantly come down now. When in reality, it's all going to go up. Well done America, well done.
I wonder if it really was about prices. The more I hear these people talk, the more it seems like prices was just an excuse to vote for the bigot.
@DimaRakesah I don't know which is more depressing.
I work in retail. People talk is it it will instantly go down on January 20th.
Before that, they said it'd go down on November 6th
and the smarter half...third?...third of us suffer for it. Gotta love rule by idiocracy...
Someone wasn't paying attention in Trump's first term lol
As a person with a degree in history, all my alarm bells are going off. How is it that no Americans seem to know American history???
No idea but sometime, this is scary.
I had to explain electoral college to american a few times...
(I am not american)
@@bobbobber4810 I'm not surprised. Ugh.
Not just history - none of my co-workers seem to understand how an increase in the price of steel could affect the price of food???
They also just don’t believe me that the dust bowl happened until I pull out the old documentary videos???
So in defense of the American people the high school American history curriculum does not actually cover much if any of what was talked about in this video. Even though I took economics in high school we still didn’t cover the effects of tariffs.
@@SleepyWinter03 Mine did. I don't know what you're on about.
"Just after the election people starting searching for how tariffs work"
COULDN'T THEY HAVE DONE IT BEFORE VOTING????????????????
In USA? Not a chance 😂
What is wrong with you? What has logic got to do with anything? 😅
Reminds me of the day after the Brexit vote when there was an uptick in google searches on what the EU is 😅 it's almost funny how similar the people of both nations still are
Some still believe it's good for economy and people suddenly make everything in US
@@khastanien3476I mean, it’s not like people would know unless told?
I think your shoe example is especially fitting because over 90% of shoes are made elsewhere. My mother worked in a shoe factory growing up. Out of curiosity I looked it up. We don’t make shoes here anymore.
I just wanna say, I just googled the definition of "Tariff", and then I clicked on youtube, and this was the first recommended video. Google, you got some good shit going on.
The algorithm knows what you want to see. It's not always a good thing, sometimes we need to see things we don't want to see or risk succumbing to confirmation bias.
Welcome! This channel does a lot of legalese explainer videos.👍Fascinating to see the source documents & have them explained
Domestic spying?
You Google it far too late but better late than never i guess
@@TheLindagdetroit Welcome, Ive subbed for like a year.
It's fun seeing Republican Ben Stein in "Ferris Bueller's Day Off" explaining to bored students how tariffs contributed to The Great Depression.
The irony is RICH!
America was making loans all over the world during the depression. The real issue is that government just doesn't care about it's people.
Tariffs will also increase home and auto insurance. When the parts to fix a car go up? So does the insurance. When the cost to fix home damage goes up? So does the insurance.
There so many TH-cam videos describing how the import tax (or tariffs as Trump describe them and these two are identical) works.
Does it mean the Americans doesn't know how the tax/tariffs works and they still think the exporting company or country will pay the tax/tariff? 🤔
You must have a crystal ball. You have no clue what tariffs will do. But every country that has ever existed has responded to tariffs with counter tariffs of their own. If tariffs only hurt the importing country why would every country retaliate by… as you claim… raising the prices on their own people? Why would they even need to “retaliate” to tariffs that don’t hurt them? Someone’s lying about tariffs here and it’s not every country that has ever existed.
The video refutes itself over and over again. For instance the video asserts that the EU placed a 31% tariff on Harley Davidson. What happened? Did the market crash in Europe?! Did the cost of everything skyrocket in Europe!? No, Europeans just bought other motorcycles.
So let me get this right… tariffs work for every country except the US, but only when Trump does them. Got it.
@@vladimirtarabay2416 how do you know what tariffs will do?
@@BCundergroundHIPHOP that’s a complex question fallacy. It presupposes that I do know what tariffs will do, which I never claimed.
What I can say is what the threat of tariffs have *already* done before even implementing them: get concessions from Canada and Mexico. Ergo, the strategy is already working.
What i will also assert is that for all of human history no country has ever liked having tariffs placed on their products and seen it and responded to it as a punishment and almost always responds with retaliatory tariffs.
In the video they assume that tariffs work everywhere but the U.S , and especially not when Trump does them.
@@vladimirtarabay2416 it’s just poor game theory on your part. You’re also confusing “hurt them” with “not taxing the exporting country”. The “hurt” comes from decreased overall exports. Trump is using the threat of tariffs as a negotiating tactic. The video asserts that targeted tariffs work, so cherry-picking the motorcycle as an example would be a fallacy.
His goal was to gain power . He doesn’t care about anyone but himself. He just say the right things and he doesn’t care about consequences .
About Trump's childcare response: If tariffs are going to solve the childcare problem, then he is implying that the government is going to pay for childcare (or at least subsidize it), right? In fact, he ends by saying something like "We will have so much money we will be able to take care of all of our people." That sounds an awful lot like socialism, doesn't it? Where was the outcry on the right for Trump supporting socialism?
Also, at one point, he starts getting a little bit off topic (doing "the weave") and he says "I need to stay on childcare." It sounds very much like he is repeating something one of his advisors just whispered into his ear via an earpiece. If you recall, this event happened at exactly the same time as Trump was accusing Kamala of using an earpiece in public events. And as we all know, every accusation is a confession from Trump and his supporters.
MAGAs support socialism when it benefits them. You will never see anyone receiving Social Security asking for it to be taken away.
For Republicans, the sanctity of life begins, and ends, at conception 😂
@@JoshuaTootell
After the Trump trade war with China, basically all of the new tariffs went into subsidies for American soybean farmers who lost their export business. I guess socialism is good when it goes to Trump voters in red areas.
It doesn't count when he does it.
Only Nixon can go to China.
So is this the "Mexico-pays-for-the-wall" 2.0?
It worked thr last time....
He got voted back in
So why not
@kenbee1957, are you being sarcastic? Mexico didn't pay for the wall lol
@MrStephy22 he's talking about how "build the wall" campaign worked, so why not try it again
Yes
This is “enrich billionaires at the expense of everyone else” version 999
I absolutely love these collaborations with Liz Dye. "..but complicated isn't necessarily bad, some problems just are complicated" is something I wish everyone would realize and are wise words people need to understand.
Yeah, she’s brilliant.
I would argue she's better than Devin.
What weirds me out is, if you said something like "farming's easy it's just sticking a seed in the ground and watering it" or "pfft construction is just banging some planks of wood together" they'd mock you or chew you out (quite rightly, to be clear) for thinking it's that easy. Yet things like legal matters or scientific matters are viewed with contempt if they're complicated.
i love liz. the info, the delivery of the info, i swear it helps keep me sane
This election helped me realize just how horrible our education system really is.
Thanks to Republicans shifting public school funding to private schools over the past three decades.
It's about to get worse when he guts the DOE
This is why they made education that way. To Keep 'Murica Stupid. 😂
And the TikTok “uneducation” parents TRULY scare me
These kinds of comments are why Reps will keep on winning and winning, no matter who is nominated. If you take someone's lived experiences and instead just put everything down to attacking their education levels, you'll ensure polarisation will keep getting deeper and deeper. Moderates will evaporate. You'll never win hearts and minds by saying those who vote for something different are stupid, regardless of what your opinion is. Not everyone is the same.
3:00 that's exactly what happens in Brazil. We pay roughly 60% import taxes but from every country.
The very few local companies that try to produce products that would otherwise be imported, sell them at very high prices, very close to the imported ones.
I don't believe that in 2024 people still fall for this bull$hit of taxing products instead of income.
It's how the "elites" go "look over there not at me" aka I don't wanna pay to help anyone but myself.
Brazil places tariffs on every country they trade with? That’s pretty nuts.
@@AdamVassGal My country, Costa Rica, does the same. Is because these taxes are simpler to collect and don't touch the pockets or the richest persons in the country.
In our case tariffs vary between 10%-30% for most products, cars taxes can be as high as 50%.
@ It’s interesting. Thanks for the comment.
@@bargainbincatgirl6698 How much are income taxes? I’ve visited many times and it seems like tariffs +high VAT is very regressive.
Hey America! Emotional Support Canadian here.
Want to know what our no1 export to the US is?
Oil. 4 million barrels a day.
The US produces 13.4 million barrels a day at its peak (August 2024), so lets just say out of every 100 barrels of oil, just shy of 25 of them is going to become 25% more expensive.
Happy Tarriffing!
How is that emotional support at all? It sounds like you’re gloating.
Was thinking about moving over, in Winnipeg still cold?
You're free to ship them over to the EU instead!
Oh, I know! I've been laughing hysterically for, oh idk, weeks now? We are so dumb.
@@Palidor19 Oh yeah Winnipeg is still cold, and this time of year it's gonna keep getting colder. Pretty sure it was colder than the sunny side of Mars a few times last year.
I hope this actually doesn't become a nothing burger. I hope this hits us hard. I hope this hits us SO hard that not only does it end to getting reverted, but it also makes Trumpers hilariously unviable in politics going forward.
The biggest issue with a lot of Democrat issues is we don't see the negative return on investment fast though for idiots to make a correlation. These are the people who don't believe in climate change because the entirety of the US isn't underwater yet. They don't understand things take time to get worse.
If this ended up raising costs in two or three years, these people won't see the correlation. We need tariffs to hit us, hard and fast, so we can literally point fingers at the tariffs and have people understand.
Remember when a 1/3 pound burger failed in a country because people thought it was less than 1/4? Guess the Country
but the 1/3 burger tasted smaller!!
Solution is a 1/5 pound burger
@@ernestskarklins514ayy, good idea bro
@@ernestskarklins514 Youre Hired
Yeah, US politics is an absolute shit show, that's why I follow along, absolute comedy
Why settle for a simple _recession_ when you can go through a whole _depression?_ 😩
Make Depression Great Again
Its been almost a century since the great depression, guess we all need to be reminded why it was so great
He should change his movement's name to MDGA: Make Depressions Great Again.
@@nathanaelsmith3553just like his last presidency…oh…wait the president doesn’t seem to have any meaningful impact on the economy
@@MJB4646 ?
That childcare clip hurt so bad. Word salad at its finest. 🤦🏽
Not to mention the applause.
I mean, who can argue with "childcare is childcare"?
Those of us who aren't very stable geniuses can't appreciate the subtle brilliance of that.
Notice the applause was triggered because of the mere mention of his motto.
@@ateamfan42, Count me as one of those stable geniouses that doesn't believe anything that comes out of his bigly mouth...v
@@jarekguntherMy understanding is those people in the audience were high-net worth people that want the tax cuts to continue. So, they could care less about anything that LYING LIAR says. v
Considering grade school in this country is about to disappear, no wonder they're ignoring childcare.
Tarriffs are used to protect your own industry so that they can keep people employed and it give the government power if that industry become too greedy on profits. I would also love to see the removal of red tape for new factories to be buildlt in conjunction with a tariff height for that industry
But they don't produce industry out of thin air where it doesn't exist. All this will do is raise prices. Then likely cost us billions in tariffs when other countries retaliate.
Building new factories would take at least a decade, and would require billions in investment that companies have no reason to spend.
so you put a tariff on foreign steel. Domestic steel producers are happy and can jack up prices to be just under the new, higher, foreign steel prices. Steel consumers are upset and lose some percentage of their profit, leading to cost cutting measuers like layoffs. Thousands of jobs are lost from steel consumers.
Who won? The owners of domestic steel producers. Who lost? Everyone else.
It's just ridiculous how people only try to understand how things work when it no longer matters...
'Don't Look Up' was apparently a documentary
@@RHCole it's so weird realizing I'm living in multiple movie scripts. Idiocracy, Don't Look Up, what's next?
Also a side note:
The dude that wrote Don't Look Up is apparently a Trump supporter. So even HE missed out on the story he wrote lol.
@@KipVelcronoAt least the Cabinet in Idiocracy actually listened to the main character!
@@KipVelcrono One more thing that applies to everyone... except Txxxx,for some reason somehow 🙄
Idiocracy is not a documentary. It's a soft eugenics movie that pretends that stupidity is hereditary.
chaos lawyer liz dye genuinely makes me feel so calm and reassured. her cadence, insight, and general vibe are so very choice
I remember the 2018 tariffs on steel. At the water company, we had a few lowest-bidder procurements that were awarded, but materials were not yet purchased. We had to rewrite our contract to allow the 20 percent increase in steel to pass through to us. Otherwise the companies would have rescinded their offer and we would have had to rebid, get a higher price and lose 9 or 12 months project schedule. The effects of tariffs were immediate and obvious. Most steel comes from overseas. Even American companies were passing the cost onto us. I was shocked that I wasn't hearing more stories like ours on the news. We couldn't increase water rates at a whim, so we effectively had like 15 percent less purchasing power overnight. That much less projects we could complete for the public on a fixed budget.
maybe if we had tarriffs then most of our steel wouldn't come from overseas.
@ohiasdxfcghbljokasdjhnfvaw4ehr great, I'm glad that tariffs would magically create steel mills all around the country to meet the sudden demand.
You'd have to invest massively into supporting the growth of the steel industry in the US, but our pres-elect can't think more than three days ahead.
..
@ohiasdxfcghbljokasdjhnfvaw4ehr That would ultimately be worse for everyone. Specializing in specific goods and trading for others increases the total amount of goods that can be produced. This is high school-level economics.
The fact that you claim most steel comes from overseas makes me view everything else you say with extreme skepticism. The vast majority of steel is domestic. Only about 20% of US steel is imported, and the figures continue declining each year.
@@joocebocks8610 My guy that 20% number you are tossing around is just for finished steel. The USA imports an insane amount of raw steel, literally the highest importer of raw steel in the world.
This has been the best explanation I've found on Tarrifs for me and I believe an audience of all ages above 18
PLEASE spread this video everywhere
This is petty, but I know someone who supports him and his tariffs and clearly didn't understand how tariffs work. After he won, she celebrated loudly, and I explained how tariffs work. She immedietely got confused, because he himself didn't say that's how it works, and she couldn't fathom the idea of him lying or being wrong. After showing how tariffs work (with evidence and history) she got worried. Then, to be an ass, I said "there is one good thing though", and she asked what it was. I said "Whereas you can't afford it, I can afford it". And then she got really mad at me.
😂 that was petty, but I have to admit, if I was in your shoes, I'd be hard pressed not to do the exact same thing. Some people really wouldn't stop trying to touch a lit stove until they get burned from their efforts.
LMFAOOOOO
@@ZombieSandwiches this is how I’ve been feeling lately. Are things going to get more expensive? Yep. Will I be fine? Yep. Am I internally smirking at the incoming implosion of the “can’t afford gas or groceries, inflation is literally k*lling us” party? Also yep.
They literally never pass up a chance to show pettiness. Why should you be nice.
@@meowiestwo Depending on what your job is, you can never be too sure if you'll be one of the "safe ones".
Friend of mine owns a small export business. He buys goods from small businesses (including mine) and exports them to other markets. About half of what he exports goes to the USA. (we are Canadian)
First thing he did when these tariffs were announced he called his customers in Europe and Asia and is negotiating an increase in exports to them!
My friend is perfectly willing to not export to the US at all. I mean, he still will, but he will look at easier markets first.
Good for him. It makes perfect sense that he'd look after his business first. Better to prepare now than to get caught off-guard when the tariffs actually happened.
most other countries have a VAT tax, which is far higher. Generally 20% for EU and UK. The goods coming into the US are very little taxed compared with most countries.
The good news about the other countries is that we have many other options. US wants to make it harder and more expensive to sell our good to their people? No worries, shift the plans and sell to other countries to retain as much business as possible.
At the end of the day, this will hurt Americans the most. They will have less selection, higher prices and nobody to blame except themselves.
@@MrBattlecharge exactly. My friend says that most of what I sell him goes to either the UK or Australia anyhow. So with regards to me it won't matter. But a lot of his other customers? Definitely will be impacted.
I am curious as to how this will all play out. Neither he or I are going to boycott American markets. That would just be foolish. But there is definitely a valid reason right now to be looking overseas for more customers.
@@ZyfenVAT is charged to the customer, it is not an import tax
0:55 - Chapter 1 - What are tariffs ?
8:15 - Chapter 2 - Protectionism instead of free trade
17:10 - Chapter 3 - Those who cannot remember the past are doomed to repeat it
20:20 - Chapter 4 - But can he do that ?
22:35 - Back to LE
23:10 - Conclusion
Any mention of how other countries tariff American goods into un-competitiveness?
@@metaleater9This video is primarily about Trump’s new tariffs and how they will directly impact American consumers.
Free trade on a global scale can never exist as governments have too much control. Tht is why china was able to get away with exploiting the usa for so long. It's not a free market and never was.
The fact americans are crying tht costs will rise is indicative of how dangerous the game is. Fool the citizen, fool the goverment. Tht is democracy.
Whats interesting is this may actually be one of the first times the price of groceries will go up and it will ACTUALLY be the Pesidents fault
Keep gaslighting. It’s worked well so far.
@@andrewjgrimm oh, I want to hear this. why do you disagree?
I don't think you understand the concept of gaslighting.
@andrewjgrimm just watch lol. The Australian doller is going to be worth more than the US doller again. Trump ignoring russia for four years led to ukraine being invaded a second time. Even boris Johnson helped ukraine prepare. Trump shat on our European allies while praising dictators and selling out those that work for us. I.e the saudi coup via his son in law. Trump blackmailed ukraine further weakening our position against russia. You idiots wanted red over democrats you chose red over democracy! You chose epsteins best mate to be your president. Great job
@@andrewjgrimm
Brushing up on economics before Thanksgiving tomorrow
See you space crowboy...
Same. Hopefully everyone keeps the peace, but if not, then I'll at least be prepared.
Good luck on that peaceful conversation!
Please come back and update us on what happens at Thanksgiving dinner
Write down the costs of the meal. Compare in three years.
So say good bye to his mass deportation plan because if he increases tariffs we are really going to have to rely on cheap labor. 😂😂😂
Trump's plan is to rely on child labor instead.
@@PitLord777hence the abortion ban and defunding the department of education
TLDR for those watching: The People who need to hear this will likely never see it, please explain it simply to them, without trying to talk over their heads as a personal "win".
1. Tarrifs are TAXES that AMERICAN companies pay to the government to import goods.
2. A 10% tariff can become a >30% increase in retail prices for goods affected AND goods not affected but adjacent. (%based sales are exponentially scaleable)
3. The only party benefiting from tariffs (outside of those used for defense) is the government. (This single fact is most likely to trigger some of them to actually listen)
4. A large portion of our economy is directly reliant on trade (27% of our gdp!) but a broad trade war can indirectly affect over 60% and cause rampant inflation (as retaliation increases) which affects everyone.
5. Tariffs aggravate other countries NOT because THEY pay a tax, but because less of their products are purchased, causing them to retaliate.
It's kinda strange how every comment on this channel is against trump. Calls tariffs taxes, claims tariffs are bad, then suggest they/ tariffs will benefit every American ( sounds like socialism and how could a trump voter support socialism).
I wish legaleagle will do a vid on how defunding the police actually helped taxpayers.
TLDR for those who want the other side of it:
Trump is using tariffs as a threat to get what he wants. Mexico just decided to stop all caravans trying to reach the US border hours after Trump threatened a 20% tariff to punish them for allowing the situation.
While this video has a lot of accurate information on tariffs, it has zero attempts to be even remotely good-faith and present the other side of the argument. This video is correct if and only if Trump does everything he said in the worst way possible and with no nuance.
A lot of hiss threats of tariffs are coupled with demands or complaints and the implication is he will not do them if the problem is fixed.
@@highlandlab1924 Did defunding the police "actually" helped taxpayers? Asking for a friend 😊
@osiris7089 nope. Not a dime. If anything it allowed criminals to get away with even more. Only 1 way defunding the police could have worked.. deputise every (legal) gun owner.
@@highlandlab1924 isn't the word tariff literally from the word tax
The issue is that tariffs generally don't even work in propping up the local economy either. The reality is that we live in a globalized world, and basically every product that exist has some connection to trans-national trade. Even local produce is most likely fertilized with chemicals that were produced somewhere else, meaning that even the local food production will increase in price due to tariffs.
And it is also not like it is something new. It is not even that long ago that Brexit has shown what happens to an economy when you suddenly create trade restrictions with your close trading partners. It severely harms domestic production.
They had an effect before Reagan legalized stock buybacks.
Before companies had to consider paying the tarrif against upgrading their company model. Now they can pay the cheaper price and pass it 100% along to the consumer.
@@Vohlfied Haven't you watched the video? They literally explained how tariffs lead to the great depression, and only made the situation worse. And that was long before Reagan. It was always a bad idea.
It's almost like the higher the price the lower the demand.
@@grandgibbon2071 that’s an extremely simplified view lol
Narrow, focused tariffs can be helpful, especially if they make it harder for countries, like China, to dump specific products at below cost, or protect a very young local industry that needs protection until it can build itself up enough to compete with foreign competitors.
General tariffs, on the other hand, are stupidly harmful as described in this video.
"If he just said every non food item in Target would double in price, no one would vote for him" - which is INSANELY ironic given that most of the people I talked to who disliked him but voted for him anyway said they were doing it because "Biden has made everything to expensive".
Like you can't make this sht up. The world is insane.
The world is uneducated, unfortunately.
A lot of people voted for him purely to be racist, anything he said or did was irrelevant.
They probably still would have. He's said worse things out loud. They do not absorb anything he's said since 2016.
@@BrianIsWatching They absorbed it. And promptly ignored it, so as to "own the libs"
@@deliriumsd142 Not just uneducated, also unable to admit being wrong.
If the intent of the tariffs is to get companies to produce in the US so that they can avoid the tariffs, how long would it generally take for companies to do so?
At least ten years to build the factories, and it would require billions in investment that companies simply have no reason to pay. Far easier to just eat the tariffs and raise prices accordingly.
Longer than it takes for the tarrifs to ruin the economy
Prices will still be same because manufacturing in USA ain't cheap. It is the same reason every other company manufactures in China, because it's cheap.
Finally, someone who got the arithmetic correct on how goods are marked up and what that tariff does to the final retail price.
I mean.. for things that are only imported a single time. Some stuff goes back and forth from US to Mexico, adding different parts and processes in different places
@@SigFigNewton Years ago when I was involved in importing goods, we would often import them "in bond" where no duties or taxes was paid until they were sold or re-exported. So, goods going back and forth might enter the country in bond while awaiting further processing before being sent back out of the country.
but that will increase the gdp .
I think he got the concept right with it compounding, but I was taught that the mark up at the retail end is usually about 3 times the factor gate price, while these numbers were four times - my guess would be distributors have a much lower cost burden that retailers (since they don't have to worry about accessibility and presentation of the product, and have economies of scale in moving multiple products around compared to retailers typically shifting them one at a time). Happy to be corrected if it is about 4 times the price now.
@@neilbiggs1353 It depends on whether you're selling commodity type good like sock and T-shirt or higher end goods like jewellery. But yes, the distributors would have a much lower overhead than the retailers per dollar of sales.
Can’t believe that the man spoke for two minutes, said nothing, but he used enough dog whistles that his crowd understood whatever it is they understood, and then they clapped about it
Wasn’t really sure what any of the clapping was for, unless it had just been for the fact that hE sPoKe
I can easily believe that... That's what he does in all of his speeches!
Might as well have said “it’s easy yadda yadda we are awesome yadda yadda make America great again. *cheers*
He is good at it. That is all he does.
Idk why they want to abolish the education system. He's already got a fat pack of sheep that blindly follow him
Maybe it's because I'm Canadian, but when I was like 13 years old, we learned about the trade wars and tariffs between the British empire and the United States that happened way back in the 1800's and how it was detrimental to both economies and that in trade wars, everyone loses.
I literally did a paper in high school (also Canadian) about globalism and trade, and while I'd like to flex I got a perfect 100% on it, remembering it just reminded me of how much stuff the US imports from global markets.
Yeah, but they gloss those over in us history (because they want to teach us about andrew jackson. I'd prefer it if they focused more on the tragedy of the trail of tears, but no they just toot his horn)
So you agree tht Europe should let the usa flood their markets and tht Europe should not have food or manufacturing independence?
On the contrary, in America they lionize the advocates for those tariffs because some prominent free trade advocates were slave owners, and, in Jackson’s case, demonized outside of the Nullification Crisis (which happened because he was willing to compromise on tariff reductions). While it’s important to not let them off the hook for stuff like slavery and the Trail of Tears, the tendency of people to oversimplify and make “heroes” and “villains” means that it’s more of a pendulum swing that glosses over finer details.
I am Canadian and currently living in the US in a republican area. My husband is an accountant for a gas company that imports a good amount of oil from Alberta. The things said about Canada here is insane, why do people think tariffs are a good thing? The oil Sands are mostly owned by 4 Canadian oil companies. Then those 4 Canadian oil companies biggest share holders are American oil companies with the exception of one I think. The imported crude oil goes to American oil refineries for further production, mostly in the Midwest. So it's like US will be sanctioning themselves
Harley-Davidson will not be able to sell any bikes in Europe which will cause them to go under they're already closing stores in England they're going under because of Trump's stupid policies take effect and will make things even worse
Please give your editor a raise and/or a big fat bonus omfg I was dying at the childcare speech
Honestly, I skipped it. I can't handle 2 minutes of that
@@JoshuaTootell We know we meet about it and if there is ways to solve it or it's a dead end yearly.
@@JoshuaTootellI gritted my teeth and watched the whole thing. It’s terrible but it’s made SLIGHTLY less shitty because ironically he’s not at a rally.
Anyone who listened to that 2 minute rambling and thought "that's a great idea" or "that made sense" should never be allowed to drive, operate heavy machinery, or do any activity that can lead to someone else being hurt due operator stupidity.
Well, you can't take away their ability to breed or vote, so just get your Gatorade ready for your neighbors when they run out of the stuff! They'll need it for their plants! :D
Or vote.
It was 25 minutes, but I agree
No one listened to it. No one listens to anything. How often do you see regular people fixedly watching and absorbing a piece of media or news footage instead of scrolling mindlessly on their phone?
The public is broken. Critical thinking and concentration are just gone.
...or "graduate" from kindergarden. 🧐
This election taught me that people’s perception of something is more important than what the thing actually is. I was so foolish thinking people cared about how stuff works.
Most people care about how stuff works in their own orbit. Like a plumber needs to know stuff related to plumbing, but doesn’t really need to know about the economic impacts of short term interest rate changes even if it would be helpful to know said information.
My mother in law voted for Trump because she believes that other countries pay the tariffs to us even after hearing 50 times they don’t. She just knows china pays them regardless of any proof otherwise.
It’s like, I love her of course but like…it’s hard to have a grounded conversation about something in reality when you KNOW the other person doesn’t care about what they’re even saying. Like if I know you have no idea how literally anything in the economy works why am I talking to you about “what the fed is doing”. It just makes me not want to talk about literally anything because the thought of you not even remotely processing what I’m saying…where does it bleed into besides this one thing?
Yeah, the whole "facts don't care about your feelings?" They only meant YOUR feelings. Facts obviously care about their feelings though (or vice versa) LOL.
I understand where you're coming from and have similar experiences with my own family. We just talk about non-politics stuff instead. They do still listen and care about most of the stuff I say. They are interested in my life and want the best for me. They just have a severe lack of comprehension, a complete mental block, when it comes to politics because of decades of brain washing from right wing propaganda.
There is where there the first amendment is maybe the most damaging in the constitution. The intent of it was wonderful, protecting citizens from reprisals when they call out the government. The unfortunate thing is that there is no mechanism to stop powerful people from lying. Look at the Jack Smith filing in the DC Election Interference case where he explicitly had to state that Trump had the right to lie about problems in the election. In this case, who can force Fox News and other parts of the echo chamber to make sure these people get a true understanding about tariffs from sources they trust? Fox didn't even air anything on their own channel about paying $787m in damages about their lies.
At some point, we have to reckon with the concept of Freedom Of Truth (or at least honest debate) vs absolute Freedom Of Speech
These people are literally brainwashed because they make politics and "owning the libs" their identity. To admit that they don't understand the economy is to admit that they feel powerless and do not have a strong sense of self without the narrative that they're special enough to see the truth and the rest of us are sheeple.
Their brain will actively shut down to the things you are saying to them on these topics to protect them because they're scared and are thrown in to fight/flight mode.
Have struggled with it so much in my own family and there's not much you can do beyond never talking about politics until they're at a point they start to question it themselves.
Oh, the facts do matter and when these people get hit by reality when the economy plummets, you can at least take pleasure in gloating about being right.
Great content as always! Thank you for breaking down tariffs in bite size pieces.
This is a great video that large population of Americans do not understand. I’m very certain good amount will still ignore this video calling it false information.
Lugenpress!!
*Translation* fake news
Correction, its not that they cant understand it, they just refuse to understand it. If they actually try it would collapse their bias and ego
until it hits their wallets
@@dariyanvalentine3564they will still be blaming Obama
@@dariyanvalentine3564too many instances of people blaming the problems they have on the other party, regardless of who actually caused it (yes it goes both ways, it just happens to be one specific one mist of the time)
In order for democracy to work, the people have to be both informed and educated. In America, we clearly have neither.
.
Even worse, we now celebrate ignorance. Proudly uninformed and poorly educated.
Poetic justice is so beautiful. 🏴🏴🏴
(they don’t really have a Southern flag)
This is not an education or informational problem. You think you can inform and educate the flat earthers enough to believe the earth is not flat?
@@georgezikos8902That’s not a new phenomenon in the US
It's astounding how many people don't understand the most basic parts of the economy... and then need a lawyer to act as an economist to explain it to them.
Its also shockingly alarming that an "influencer lawyer" might have more public/political standing and rapport to get enough people to listen when actual Fiduciary personnel have been warning us all along the way.
Astounding, but not at all surprising.
Lawyers are trained to be argumentative public speakers (win trial by convincing 6-12 dumb randos on a complicated thing) while economists are trained to write articles for each other
@@guilliamlille6123 That is regrettably accurate for the economics dweebs out there. This whole time they could have been paid lawyer money to make more convincing arguments.
What is more shocking is the fact that many of the guys defending tariffs also say they are pro capitalism and hate socialism, well... Adam Smith hated tariffs, the damn author of the wealth of nations. And I remember that in 2016 Marco Rubio was celebrating the 200 years anniversary of that damn book, without even reading it at all
The great depression was caused by lack of regulation by banks and wall street. Even without the smoot hawley tariff there still would have been the great depression. In fact it might have made the great depression worse abroad, as the market would have been more interconnected. The glass steagall act and similar policies were necessary to solve the depression, remember the vast majority of economists agree the groundwork for the 2008 crisis was caused by repealing the glass steagall act. Also tariffs are not perfectly elastic. A 1% tariff does not equal an exact 1% increase in price. Especially when you take into account things like automation which can get rid of the necessity of cheap labor.
I love how the War On Drugs got so expensive, that the latest tool is a new tax.
“It’ll work this time, I swear!”
"$60 for a half?" I asked,
"Plus tax!" said my *drug dealer*
The Onion has a T-shirt in the on-line store...
"Drug War"
"And Drugs Won"
Never understood the War On Drugs in a free market. What really is the difference between the Sacklers and Escobar? Let the market decide!
@@notachannel7495the difference? Doesn’t Escobar have a degree of honesty about his role in the world
@@patrickjordan2233 Yep, drugs won the War on Drugs just like how alcohol won Prohibition.
It's so interesting that the citizens of the country that emphasizes free market capitalism so much, don't understand neither markets nor capitalism. Or freedom.
Could you give some examples of both?
@@osiris7089 Anyone thinking that the tariffs worked the way Trump said, as pointed out in the video. People don't understand that tariffs are paid by the company imposing them, not by the foreign countries. They also don't understand that making things more expensive for producers results in that cost being passed on to consumers. They also don't realize that the increase in prices of foreign goods won't make American goods more desirable because the American companies will just increase their prices to match, making more money for the shareholders of those companies. They also don't realize the ripple effects of how costs of oil, microchips, wood, grain, and other imports results in increases of prices for all other goods. They also don't realize how the cost of purchasing these basic goods is a large part of their own income, but a small part of the income for the rich, therefore being a tax primarily on the lower and middle classes, while making rich shareholders richer because they can increase their profit margins. They also don't realize that the actual one possibly decent outcome of tariffs - that it encourages more production from within the US - takes a very long time to catch up, while in the meantime we all just pay those tariffs ourselves as we continue to rely on imported goods. Lastly, that it's not always possible for the US to make these things locally - they don't have the raw resources that are being mined or grown and used, which is why they have to import them.
And as for freedom, they don't realize that tariffs are a way for the government to control the markets, trying to dissuade foreign imports and artificially inflating the cost of those goods. This is in opposition to free market "laissez faire" capitalism where producers and consumers come to whatever arrangement is most efficient and best for both parties (in theory). Those same people would normally denounce such government intervention as "communism".
@osiris7089 you must be dense 😅
@@itsspookie that doesn't explain much unless you have some examples of your own to share.
yeah, but this is HARSH capitalism
14:02 "Who's gonna be too bothered by 6/10ths of a cent?"
As someone who works with a lot of overseas customers, some of them get VERY ANGRY about even hundredths-of-a-cent price increases. It's annoying and petty, and YES they will either demand the price be changed to match their expectations or they just refuse to pay the invoice.
They also can REFUSE to buy the product. A car has a hell of a lot more steel than a tin can(so the price will go higher)-trouble is for the manufacturer is: that I do not NEED a NEW CAR. I will still buy Asian over Domestic builds just because THEY ARE BETTER. So raise the price on foreign cars & domestic prices will be right behind them.
. I am guessing that applies to oil & gas too(as MOST of the U.S. gets MOST of its oil & gas from Overseas. (You might have heard of Saudis Arabia, Iraq, Iran, UAE, Canada.
Afghanistan (it doesn't have any oil as it is on a mountain of granite essentially)
. . Just so you know what Donnie plans to "eff up" Guess they are either going to horse & wagon or Electric....or walk. Definitely not electric golf carts. Snow tires for them are outrageous. Oh, did I mention shoes. They are made overseas too. Portugal, Spain, France, GB, India, Japan, China, Mexico, and I am not going to name all +100 countries that EXPORT TO THE U.S. and to each other. They will not have an issue. Just making more work for U.S. Customs at the border. Think of U.S. border going all around the U.S. - so Pacific Ocean & Atlantic Ocean. Mexico is a small land crossing yet they are bringing in $Billions of fentanyl into the U.S. (instead of it being Made in the U.S. by big Pharma (who invented the stuff) or a backyard garage brews this like you would a coffee. It is only CHEMISTRY.
. I did not know the U.S. grew bananas or coffee or tea or sugar cane....or spices or nuts except maybe peanut, walnut, hazelnut, cashews? Then there is your "I know everything politician" just proving he don't know anything...you grow a lot of them NUTS.
no edits....Perfect edit. Well done.
He's about to start a trade war for no reason
He did it last time and created a massive steel scarcity was really cool. (it fuckin hurt my familys buisness like crazy)
No reason? He has a reason.
His ego
Depression... It'll start a depression. Not a recession. It'll be worse.
Again.
No reason other than senility setting in.
A Tariff is only a good idea if you, the government, have absolute control over imports and exports of a specific area. Like a colony.
However, this is the best case scenario, and even that whole process ended with a little thing called the American Revolution.
bruh what thats not how tariffs work. Consumers pay for the tariffs when imported. Yes the chinese exporters will end up eating the $12 tariff because his whole idea is to incentives companies to movve production to america to make more jobs etc etc.
The government DOES have control over import/export though? Whose circumvention is a thing called "smuggling"?
That's not quite what's meant. When Britain had an empire, it totally controlled it's colonies, thus it could impose tariffs on imports to Canada, India, Australia etc. from nations outside the empire. This was good for British manufacturers who could export and import tariff free making their products much more competitivel and the colonies were effectively forced to trade only with Britain or with other British colonies. It was less good for people in Canada, India, Australia etc. because there was no effective competition so price were relatively high.
The United States aren't in the same situation since they don't control other countries/ territories who can trade freely between themselves and could take advantage of surpluses that would normally go to the US, but are not traded because high tariff suppress demand there: Europe for example might be getting a load of discounted Nike's soon( technically the US does in effect have colonies, but that makes no difference here)
@@3AnxiousFerretsInATrenchcoat this comment of yours is a good example of a typical bad faith argumentation style which have been widely used during the american election debates. Your stupid will be studied further.
This is the ironic thing regarding food costs and "American-made goods"; if you want something local, you _have_ to pay more for it because locally the minimum standards of living are higher.
It's not just a difference in price at the consumer level, it's also a decrease in goods imported as a result of less sales happening and therefore less profit being made. So it's better for companies to continue to sell in the regions where tariffs are more manageable or non-existent.
Maybe we should be paying more for some things.
I’d rather buy locally made things even if it costs more.
@@nicko880not everyone can afford that. Wages need to go up to compensate.
@@esteemedmortal5917 ok but this video acts like everyone is dumb and everyone who voted for it thinks it means someone else will pay.
No, I want locally produced goods to be able to be potentially more competitive with cheap foreign produced goods.
Why is it not OK that that’s what I want to see? Why is everyone so OK with cheap foreign made goods heavily made by exploiting the labor market in foreign places?
@@nicko880 I am confident most people who voted for him do not understand tariffs.
I thought tarrifs were super basic civics (like 7th grade level) but apparently we have people deciding who's in charge of the country who don't even know that tariffs on on the consumer to pay and not the supplier...
So many Americans, myself included, already live paycheck to paycheck. What are we supposed to do when prices go up even more, and many of us lose our jobs because the company can't afford to pay us (at least without sacrificing the pay of the CEO)? Rely on unemployment benefits that will probably also be cut? "Pick ourselves up by our bootstraps?"
Band together to form a community? Some of the ideas for that are shared housing, start victory gardens, share skills and knowledge like sewing, foraging, and cooking among each other (time banking is one of the ways to manage it).
I mean, before the era of modern countries, the people that humans rely on are their community and the people in it.
@Marewig "the solution to avoid living in a third world country is to live in a third world society!"
Magats will do everything except admit that they're wrong
For one thing we can learn the lesson of never voting for buffoons like Trump ever again. Most still won't learn that lesson though.
We are the lamb sacrificed on the altar of economic prosperity
You realize you're talking about the last few years, right?
Fun fact: Searches for “How do tariffs work?” skyrocketed a couple days after the election, along with “Can I change my vote?” 🤦♂️
I hate this country
This is our "Brexit"
File this under "not true"
Why would someone do that? Just go on the internet and tell lies.
@@bushtacoEspecially because of how pompous people are over their political opinions.
In 2018, my mother was fixing her deck when a box of wood nails at Home Depot went from 8$ a box to 22$ a box. So yea, this is going to be wild.
Construction ground to a halt because builders honestly couldn't give quotes - they wouldn't know if that steel for your garage that was $5000 today wasn't gonna be $12,000 next Tuesday when you decided to build it. Builders were giving 24 hour quotes - as in quotes good for only 24 hours.
@hoilst265 I completely forgot about that. Those 4 years felt like 20.
The only time a tariff or import tax is beniefecial is when it can equalizes the cost of making goods here in the USA. If Nike can create a shoe in the US for $20 then the tariff on the import shoe is equal to the domestic one. The manufacturer in China has lower labor costs than the manufacturer in the US so they can offer the shoe at a lower cost. The tariff would raise the price of the shoe but it would also create jobs for Americans to manufacture shoes.
No it won't. Building the necessary factories in the US would take at least 10 years and billions in investments that companies have no reason to make. Instead they'll eat the tariff and raise their prices accordingly.
I love how "Smoot-Hawley" sounds a little bit like the Danish word "Smuthuller" which means "loop holes".
Danish "words" don't actually mean anything, they are just guttural sounds used to get each other's attention while they are feeding or reproducing or just living in their daily squalor.
@@jennyanydots2389 This is the most unhinged and hilarious comment I've ever seen.
@@jennyanydots2389 bro stuck 40 danes with his atgeir before posting this comment
@@jennyanydots2389H.P Lovecraft, is that you? Did your cat come back home yet?
it’s insane that he tricked people into thinking he’s the better choice. it’s even sadder that people fell for it💀
What's really sad is that a lot people didn't "fall for it", they consciously want someone to break the government because it does nothing for them (in their pov anyway). Kamala was too arrogant and offered no real policy alternatives, it was just status quo from her and that campaign strategy cost us big time. 4 more years of grievance politics and illogical policy decisions... very, very sad state of affairs. Democrats should've ran Bernie Sanders, but, the donors would never allow that... wealthy democrat donors would rather have Trump than Bernie.
To be fair, Democrats didn't offer any real change. Other then vote for us, we're not the other guy.
Trump was selling "change", be it a lie or true is mute.
They didn't want "the better choice"
They wanted the old white guy that "is a businessman"
Especially since all he do is talk giving no real answers couldn't be more obvious he full of crap and that without his history
@@jennyanydots2389 She made the right call basing her campaign on "don't vote for Trump". People were just too stupid to listen.
A friend told me this week he favors tariffs because the national deficit is his greatest concern and tariffs are a tax, that conceptually will increase government revenue. If this were to occur, that means Trump is going to increase taxes. Though he said the opposite. Gee, I’m so glad I believe everything Trump says. (of course when he contradicts himself within 30 seconds, it gives me a headache.)
Trump: campaigns on lowering prices, actually raises them. Campaigns on peace, hires a full cabinet of warmongers. Campaigns on ending the situation in Ukraine, signs off on Biden using long range, but at least he's certain to stop the invaders, right? Because if a low income American like me isn't getting thousands per month and a free house, nobody should get it.
let's also remember that the US deficit is broadly caused by the astonishingly small amount of taxes corporations pay and tariffs will have ABSOLUTELY zero affect on intellectual jobs that have and will continue to be shipped overseas. Instead, let's further increase our deficit by doubling down on corporate tax cuts and blame immigrants for taking jobs that were already shipped out of the country.
I explained Tariffs to a particularly economically illiterate friend like this:
Imagine you want to buy a 2nd hand car from me - and I say I will accept 10k dollars, and you agree that is in your budget.
Then the government says there is a 25% tariff, meaning the car needs to be sold at 12.5k.
I refuse to pay the 2.5k since I would then be selling the car at a loss vs what I could sell it for elsewhere e.g. 9k to someone in Canada where there will be no tariff - so I only lose out on 1k.
You now have to choose to buy the car for 10k and pay the government 2.5k - OR - try to find another seller of 2nd hand cars that isn't charged that tax.
If there are no other people able to sell you a non-tariff car - bam - you are SOL and have to pay the government 2.5k to buy my car or I will sell it to someone else.
This is the situation for most overseas goods if there is no other seller who won't be taxed.
The only way I will pay the tariff in order to sell my car is if I have no other options for buyers, or, I can somehow strip the car down to make it only worth 7.5k instead
😂
Don't plan on Canada buying your car as it does not meet Canadian Safety standards, so you are stuck with that P.O.S., so your car is already sub-standard.
You don't pay tax on secondhand goods unless there is a capital gain which is not likely in your scenario
@@zerog1037 You should look up "Rhetoric" and "Analogy" in the dictionary.
@@calmhorizons it's a bad analogy
Yeah this makes no sense and has no correlation to this scenario. The whole point is to increase goods being created and sold here, to each other. So your point is backwards which defeats the purpose. I don't think you fully understand this situation because morons like this channel over simplify it by using too many "analogies" and "examples". All of which have context people don't talk about. I suggest instead of writing such an ironic paragraph (considering you called someone illiterate on a financial subject) you go around your community and make an actual difference. You will then have a better understanding of the way things truly work. Stop letting these morons in front of a camera control your brain.
Lol, Canada will be laughing, 25% tariff on OIL? Half of the oil imported into the US comes from Canada. Expect $5-8/ gallon gas. Genius!
It won't be. We will pay less for gas than we are paying now. Keep trying to spin and cope.
How?
@@2xDeacon No you won't , there are 2 kinds of oil.
1) the traditional black
2) the oil from fracking (atm 60% of all USA drilled oil)
refineries in the usa can only refine nmbr 1 , that is why you stil import so much oil.
The fracking oil is sold to other countries.
If you want to change that than you need to build new refineries and that would push up the price.
And if not, Johnpublic is correct if trump go ahead with his tarifs
So in both scenario prices will go up!
lol if it was up to Musk oil prices would dubbele or triple for regular people to promote tesla (ev) driving.
@@2xDeacon Lmao you can't be serious...
@DoubleDDeacon Really? And the meat you buy Kroger they just create, right? You should read where US energy comes from, and it ain't pipes. It's Alberta. But don't let facts get in the way. lol.
As an economist few things pain me more than when I hear about foreign countries paying tariffs or trade wars being good.
Trumo said Mexico gonna pay for the wall... Truth is YOU are paying for the fences lmfao
@@StillKeepOnLosing It's unfortunate that people don't realize this.
I don't think people realise that tariffs only work in an isolated country, and in a globalised economy ,it harms people.
The teacher and interspersed cuts to bored/confused students from the 80's classic "Ferris Bueller's Day Off" = genius! Well done 👏🏆👏
the fact that you used ben stein to prove your points and how ben stein is also on the right just makes this perfect.
God Bless Ferris Bueller :)
Let the insanity begin. Picking Trump because you don’t like inflation is like picking a dictator because you want more freedom. So dumb
Even more ironic is that he kinda is a dictator and a lot of people voted for him because they think he will give them more freedom.
America is cooked regardless of who will get the presidential seat
It's not like it's exactly what happened trump wants to be a dictator
Remember how we saw inflation that calmed down in 2022, but companies like Coke and Pepsi kept raising prices because "consumers are willing to pay more." Well, that's going to continue to get worse, especially since we have three major soda companies, two kitchen and bath cleaner and baby product companies, only a small handful of companies have a monopoly on 90% of the products in Kroger, Walmart, Publix, etc.
6:27 Why Liz? Why?? I can feel my IQ dropping by a point for every minute I listen to him.
It's hilariously pathetic for people with some actual brains to actually support this guy.
Now imagine how it is listening to Kamala… even worse
She's not called the chaos lawyer for nothing
@@eliasa.2621if you think Kamala is remotely this incoherent, that says more about you than either of them. Hope all is well in Moscow.
@@eliasa.2621”Whataboutism” - a classic deflection technique, and one that is *so* easy to spot…
I've been working in consumer goods for years. Cost of Goods (COGS) is a *major* concern to companies. They *WILL* increase cost to consumers, to cover COGS.
I think it's pretty well known that companies care about their profits lol
@@kokodoritos8577 But far too many voters don't realize that means increased costs go on to them, not on to the companies and their shareholders. They think they are screwing over the big guys, but they are really only screwing themselves.