Tariffs Catch-All

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I mean, we are obviously aren't losing a trillion dollars a year to China. We are actually getting goods and services for that trillion -- a lot cheaper than if we bought those same goods and services from America. But Trump has had this absurd view of trade since the 1980s, so you might as well bang your ahead against a wall as explain basic economic theory to Trump.

The only teensy, weensy bit of "losing" that is correct here is that you technically subtract your trade deficit from total numbers to arrive at GDP. So, theoretically, and completely ignoring all the positive impacts trade has on GDP, our GDP is a trillion less because of the trade deficit. But, that is obviously not what Trump means when he says we lose a trillion to China. He literally thinks we lose it; like he literally thinks Garcia has MS-13 tattooed on his hand.
 
Calheel said:
our GDP is a trillion less because of the trade deficit.
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Not really. That assumes zero elasticity of demand. It's also ignoring the economic effects of foreign capital. Assuming full capacity, the trade deficit and the capital surplus should cancel out. Both consume demand.
 
superrific said:
Not really. That assumes zero elasticity of demand. It's also ignoring the economic effects of foreign capital. Assuming full capacity, the trade deficit and the capital surplus should cancel out. Both consume demand.
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I thought I sufficiently qualified my explanation, but perhaps not. I was limiting my point to a simple mathematical matter -- and not considering anything else -- the trade deficit is subtracted from GDP

 
finesse said:
The article doesn't address long term things like the unavoidable time between production and market and the popularity of bourbon worldwide. It's had a tremendous boom worldwide and there's been a huge investment in production and storage. The immediate effects are bad enough but they have to have serious concerns that this is merely a harbinger.
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Yes, how long does Bourbon have to age? If they slow production for this, it will cause a shortage at some future time, correct?
 
Bourbon, and other distinctly American products, have a problem.

Trump.

When America was admired and/or respected and people wanted to be like Americans. Our easily replaceable products (booze, whiskey, movies, Coke, fast food, $100 California Cabernets, etc.) sold well and at a premium. Value was attached to distinctly AMERICAN brands.

Few American wines can’t be made elsewhere. Bourbon is at least 51% corn and is aged in new American white oak barrels that are charred. Buy some American white oak and make some barrels. Char them. Buy some corn.

Then, use the now used barrels to make whisky or whiskey or a “bourbon-infused” overpriced beer.

The world will be fine with bourbon produced overseas.
 
Zoo_View said:
Bourbon, and other distinctly American products, have a problem.

Trump.

When America was admired and/or respected and people wanted to be like Americans. Our easily replaceable products (booze, whiskey, movies, Coke, fast food, $100 California Cabernets, etc.) sold well and at a premium. Value was attached to distinctly AMERICAN brands.

Few American wines can’t be made elsewhere. Bourbon is at least 51% corn and is aged in new American white oak barrels that are charred. Buy some American white oak and make some barrels. Char them. Buy some corn.

Then, use the now used barrels to make whisky or whiskey or a “bourbon-infused” overpriced beer.

The world will be fine with bourbon produced overseas.
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There's a coffee shop near me that uses coffee beans agreed in bourbon barrels. Really good coffee.
 
Zoo_View said:
Bourbon, and other distinctly American products, have a problem.

Trump.

When America was admired and/or respected and people wanted to be like Americans. Our easily replaceable products (booze, whiskey, movies, Coke, fast food, $100 California Cabernets, etc.) sold well and at a premium. Value was attached to distinctly AMERICAN brands.

Few American wines can’t be made elsewhere. Bourbon is at least 51% corn and is aged in new American white oak barrels that are charred. Buy some American white oak and make some barrels. Char them. Buy some corn.

Then, use the now used barrels to make whisky or whiskey or a “bourbon-infused” overpriced beer.

The world will be fine with bourbon produced overseas.
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That’s the thing. This is a prime example of how we benefit from “soft power.”

When we are seen as the good guys, people want to emulate us and buy our stuff. Levi’s, Nike’s, McDonald’s, Coca Cola, KFC, rock music, booze…these are all exports that people love, in large part, because they are iconic American products.

When we’re the assholes, no one’s gonna want to buy our stuff.
 


Yesterday - quit asking about trade deals, we don’t need them, they are what I say they are

Tonight — big news we have a trade deal to announce!
 
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