As long as government is needed and must be financed, it must be financed somehow. There are two ways to do this. You can either tax income or sales. A tax on imports is the lesser of two evils.
The Federal Reserve didn't exist until 1913, but we had a national banking system in place before the Fed.
without tariffs prices drop because of slave labor and and soon enough we dont have the money to purchase anything and the markets crash. hold on that is what is happening.
I ran out of characters, so my reply is in 3 parts.
Part 2:
The tariff will never compensate for the dead weight loss to society (that’s the 3 triangles above and next to the tariff rectangle). The gain in consumer surplus from free trade exceeds the loss in producer surplus + the extra income taxes. So, basically free trade is always a good thing.
I ran out of characters, so my reply is in 3 parts.
Part1:
The diagram already accounted for the opportunity cost of higher income taxes. The horizontal rectangle that goes between Quantity4 and Quantity5 is the ‘positive externality’ provided by the tariff. It represents the extra revenue that the government gets from the tariff and it’s also equal to the amount of extra income taxes we would have to pay in the world without the tariff.
This theory sucks if this is the reason for free trade then this will be the end of the middle class and the world accepting slave wages for cheaper products. Hold on prices haven't dropped but corporate profits have risen. Are we really that stupid. WAKE UP AMERICA!!!!!!!!!
Without free trade, prices would be skyrocketing! The fiat currency, deficit spending, bureaucracy, and welfare/military spending in America have caused massive inflation. The Consumer Price Index (CPI) underestimates the amount of inflation, because free trade has kept prices down. We need more free trade to prevent more inflation!
-My name is Tijo, I’m an Economics major at DePaul University, and I’m voting for Dr. Ron Paul.
I don't understand the moralizing at the end. Rising consumer costs can represent the internalizing of human costs in colonial markets, where slave wages and oppression can drive down world supply curves.
@MegaAstrodude The wages will only increase for a short amount. After that it's huge economic decline. It's not the governments job to dictate what is good for the market. they've only screwed things out of proportion so far.
"It's not the governments job to dictate what is good for the market."
If it isn't, then it isn't the governments job to have taxes, an FDA, FTC, labor laws, minimum wage, etc. If you are going to regulate at all, you need to use trade policy to enforce those regulations if you're going to have any quality jobs at all.
Historically, moderate tariffs drove the US economy to around 6% growth annually from 1869-1913.
we need to impose tariff on china india and ther slver y work force and thier state own company im vietnamese most of the co own by communist over there a prison is like a plantation in usa bak in the day free slave laobr vs a american worker we will be losing
India is clean and also doesn't have much manufacturing. " most of the co own by communist over there a prison is like a plantation in usa bak in the day free slave laobr vs a american worker we will be losing"
Notice the antebellum South always hated tariffs and all of the early antislavery advocates championed them.
It's the "consumer surplus," as in the difference between what people were willing to pay and what they actually did pay (the area below the demand curve and above the price). He's not talking about a surplus of goods.
trade liberalisation can decrese the likely hood of war because countries become more dependant and have trouble coping if the trade is cut off, in addition the problem of war is minor one, simply because war is considered MAD. Mutually Agreed Destruction or in otherwords everyone will die because we have such strong offensive technology(nuke), but no where near as much defensive technology.
@clichedusernames101 Free Trade is not going to prevent war. If anything it might encourage it. Many Americans are bitter at China for taking away their jobs and buying them out. Foreigners own over 48% of our coal mining industry. A successful war would eliminate taxes (if any) they pay to the US Government and would eliminate Americans as middle men. They could take what they want without us in the way. Free Trade is a recipe for war.
@gohikenh That is inncorrect. Free trade reduces wars and conflict as long as both countries have it. when companies try to propose tariffs towards other international companies. They are trying to eliminate competition Which isn't free trade.
@gohikenh That is incorrect. Free trade reduces wars and conflict as long as both countries have it. when companies try to propose tariffs towards other international companies. They are trying to eliminate competition Which isn't free trade.
By removing tariffs we went from a producer nation to a consumer nation. It has made us an addict of cheap Chinese goods. We go into to debt to feed that addiction. Cheap really is expensive.
BTW I am not ashamed of the word protectionism. It is a good word. It protects us.
Tariffs protected our manufacturing industry. Now we lost it and its jobs. For a time the unemployed found work in the consumer or service market. But with a collapse of the housing bubble we have come to terms with reality. We spent our savings, took out loans, and sold off our assets to keep consuming when we should have been producing. Now they own much of our industry and take the profits. We are left with debt we have to pay off with interest to them. Removing tariffs caused this.
The removal of tariffs didn't cause any of those problems. It was government regulations and incompetent GES that put us in this situation. We need to reduce tariffs to combat inflation.
@TijoKJose Sorry, not enough tariffs & government regulations caused the economic problems. Paultards would like you to believe that republicans have always supported free trade, but that is not the case. Abraham Lincoln was one of the strongest supporters of tariffs and regulations. Regulations prevent the abuses of the strongest. Libertarianism leads to the survival of the fittest. There is no regard for the country as a whole. Wake up! I want return of 50s when America was #1
This is true. Republicans were the party of the tariff for a long time. On economics, Ron Paul is closest to the "Bourbon Democrats" represented by Grover Cleveland, but even Grover Cleveland favored having tariffs at about 25%.
In the 1950s, we didn't have high tariffs either. We just didn't trade with China. You'd have to go back to the 1920s to find a time when the tariff drove our manufacturing.
"Libertarianism leads to the survival of the fittest."
Because you prefer the unfit to survive? Perhaps you wish your mother had three arms and your father had five legs... it would make for an interesting beast, don't you think? Sadly, nature disagrees.
You can try to fight the laws of physics all you want, but all you end up doing is creating more suffering for yourself and everyone around you. No one is better off. At least in the marketplace *someone* wins.
@zq926 The laws of physics have to do with matter and energy not survival of the fittest which is a Biological survival tool. I am big into nature as my channel suggests. The weak, young and old animals die first. Humans need to move beyond a survival mode not only because it is unnecessary but also because it is the right thing to do. We should provide for the elderly & handicap & make sure everyone has a descent standard of living.
@zq926 Second, free trade puts the entire nation in jeopardy. I guess there is no rules in the survival of the fittest. China is playing by none. They are manipulating their currency (devalued currency hastens demise of US companies by price undercutting) and stealing intellectual property and reselling it to us. Additionally, they put tariffs on products we can compete with them with like certain food products and now small US cars. Go to my other channel Tariffs4America for more info
@zq926 Third, survival of the fittest is unnecessary and a sharing system soon will be necessary. SOTF is unnecessary because we can create a society like Sweden with plenty for all (I actually am Libertarian in personal freedom and advocate voluntary opt-out yet a safety net always there). Read "Why the future doesn't need us". Technology is making most human labor obsolete. Gov't needs not control your life but give you the ability to have control otherwise you'll end up on the streets
@zq926 Go to my channel by clicking gohikenh and clicking featured video How Free Trade Hurt America's Manufacturing. Then click tariffs4America to get to the homepage. You will learn that freedom is not merely the right to say and do what you want. It is not having bosses telling what to do or landlords stealing your money or starving on the streets b/c the system doesn't need you. It is economic freedom. It is the freedom to have leisure time and sleep in a warm house.
Free trade has led to America's trade imbalance. That means we buy more from them than they buy from us. (That wouldn't hurt us so bad if the scale was not so massive.) If I owned a store and I was always buying from everyone else and they were hardly buying from me, I would go broke. America too is broke. We have to sell off everything (including Volvo from Ford) to keep going. Obama calls them buying us up foreign investment. I call it being stupid. They get the profits; maybe we the paychecks
Tariffs keep money from leaking out of the country. Long ago Lincoln (or Ingersoll) rightly observed: "If we purchase a ton of steel rails from England for twenty dollars, then we have the rails and England the money. But if we buy a ton of steel rails from an American for twenty-five dollars, then America has the rails and the money both."
Tariffs keep wealth from leaking out. USA, Japan, Germany, and S Korea became rich because of tariffs. W/o tariffs we are becoming poor.
This man knows a lot in his own narrow system, but he is ignoring the bigger picture. Tariffs protect our industry. In case of a long war, where will we be if China and India make our goods? What about losing good paying factory jobs for minimum wage jobs?? Or our nation sovereignty and our economic independence? This man is inadvertently doing us a disservice. Unfortunately we believe him because he is a teacher and he uses seemingly complicated diagrams. I'm educated beyond that though.
Mate you've lost the plot. I am an economics student - hence why have watched this video so therefore do not have a "bathroom business". Your views are so biased its ridiculous, calling mexicans "3rd world scum" - your just a fucking idiot.. also if they are working for less than minimum wage then it is illegal, and the employers fault, not the government. And its not really flooding labour market because Mexicans usually do the jobs americans dont want to do, not the highly skilled jobs.
How can we compete with the slave labor wages of China ? It seems like the manufacturing sector in America is dead, isn't the ridiculously low rates of pay in China a big reason for that death ?
Another big reason is the taxes the government imposes on manufacturers in America. There's an export tax, but there's no significant import tax on the most relevant goods! If you're making goods in China, you don't have to pay US income tax on money made overseas.
It's the anti-American establishment that is hurting manufacturing by taxing it to death to favor the industries of hostile countries.
Sir, I have commented on your videos before, but let me just say again a big THANK YOU for putting them up. It is much appreciated. Greetings from the UK.
THIS IS EXCELLENT... I study at the Uni of nottingham, have got a micro exam on Monday about this, and this quick class that you give to us is excellent,, would love to be ur student!!! thanks and u should know that ur contributing your own part to the society just by doing this!! also saw the video on comp and absol advantage and is very clear as well
Thank you so much for your videos! Although I understand the concept of tariffs and quotas, you gave me a better insight into the subject, especially useful in essay writing. Keep up the good work!
Now the USA has destroyed labor so much working people can not afford to live int eh USA, Bums earn more money begging then capitalist pay people to work, and now the government does not even have enough tax revenue for a functioning government. Greedy evil capitalist pigs have killed the USA.
@TheThedot - Now, that is a very overgeneralised statement. It is the free market system that dictates wages rather that the USA. However, like 90% of all countries in the world, the USA has a minimum wage demonstrating a level of government intervention to allow for people at the bottom of the socio-economic ladder to have a decent income. It is subjective whether this minimum wage is sufficient but the fact that it is implemented contradicts your argument that the USA have "destroyed labour"
@Mscottbreezy Not at all. In our USA market the rich business leaders loby our leaders 24/7 to allow end HB1 visas in the lower wages, force law enforcement to look the other way and allow millions of illegals to drive wages even more down, and ship as many jobs as possible to china so they can use Chinese child slave labor to kill American standard of living. You are a total fool if you think that is a free market. The rich are 100% mobilized all out war on American workers.
@MrAppleseed88 I disagree with your cynical viewpoint, just as I did in the first place with this other guys ridiculously biased anti-establishment line. And YOU are the fool if you think the state actually wants a poor standard of living for its people, wasnt it just last year that Obama reformed your health service to allow lower income groups a decent level of cover? And just because there are more immigrants in America - it doesnt mean the wages will decrease due to the national minimum wage
@Mscottbreezy It does not mater what you think. Something given by obama has no value, only so the rich do not have to pay the upkeep of their slave work force. People should be paid enough money via work to cover their own cost, we do not need obama hand outs... If you are stupid enough to thinking flooding the labor market with millions of 3rd world scum has no effect on wages, you should just kill yourself. I bet you can not even wipe your bathroom business well.
Thank you! I missed the tariffs lecture in my international econ class and just looking at the textbook was baffling...now it totally makes sense. Great videos!!
It would help the worlds poorest people more to get rid of all tariffs then to send aid to them.
Europes tariffs against Africa are ridiculously high which not only forces African farmers to drop prices under market value but also stagnates productivity.
Farmers in Africa doesn't get enough money back to invest in technology to grow their production and the European economies loses on the lost consumer surplus that he is talking about.
I'm no economist but it seems to me some of the extra price will be eaten by the people at the top growing fat on international trade. They will have to keep their price low to continue selling, so the rich internationalists lose.
But if industry is being to depleted in level of danger they would have a positive affect. When you have a situation were country like send products to the US and Europe full and return empty you have a severe imbalance in trade. The real reason why politicians don't want protectionism to protect the interest of their friends
Hey pajholden, thanks for this great video. I have one question if anyone can answer!
What would the diagram look like if we're dealing with only two countries: A and B. What would happen if country A placed a tariff on goods imported ONLY from country B, and not the whole world. Would the supply curve (B, instead of world) still be horizontal? How would it then shift if imports are placed?
@EpiDemic117 He knows so well many local and state governments are going bankrupt here and they are asking for a raise in my taxes out of my income that has not gone up for 7 years. Moving all the jobs elsewhere is just working out so well here. The proof is in the pudding. In the 1960's we had jobs and an economy and parents could be there for their kids. America is a total mess now.
@westonsz "In the 1960's we had jobs and an economy" Well it's 2010 and I Have a job and I still invest apart of this local economy to. Are you referring to mass industrialization so the United States could compete in the Cold war against the soviets and supply lines run into Vietnam?
"Moving all the jobs elsewhere" When have jobs EVER been static? They always move. Certain items are manufactured in different countries. each Country has a special trait.
Tariffs increase GDP (gross domestic products), they also increase GDI (gross domestic income), what this means is more products are produce within the domestic country, which requires more jobs domestically, all of which helps the economy of that country, and far outweighs the minimal loss of dead weight.
"they also increase GDI" Actually they do not. Just remember. Protectionism is what extended the great depression. some GDP can be comprised of imported goods. Such as those with parts that are imported but assembled here. Which can also account as GDP. If everything was produced here. Everything would be TO DAMN EXPENSIVE! just imagine buying a computer keyboard for 200$. And that would be the base price for all keyboards. HELL NO!
@EpiDemic117 I am a protectionist, and believe that Henry Ford had the perfect model; if you want the people in the United States to buy your product then you better provide them with a livable wage. My job was outsourced, let’s see now, 2002, that’s been 8 years ago, been unemployed ever since, can't afford a $200 keyboard, but I can't afford a $20 dollar keyboard either. But if I had a job, I would be able to earn enough to buy one. Free Trade is the cause extended unemployment. for Americans
@teagar3 "Free Trade is the cause extended unemployment. for Americans" Or maybe increasing unemployment was due to our housing market which crashed due to mortgage loans which didn't require any real physical identification or SSN which was also promoted by the government in the mid 90's that caused our market crash? You want to see countries that disagree with Free trade. Look no further than north korea. imagine us looking like that.
@EpiDemic117 "Or maybe increasing unemployment was due to our housing market which crashed due to mortgage loans which didn't require any real physical identification" Or maybe the housing market crash was due to people loosing their jobs and unable to pay their mortgages, it's still happening today.
@teagar3 "Or maybe the housing market crash was due to people loosing their jobs and unable to pay their mortgages" Or maybe some of the people who did their mortgages didn't have a clean track record of making payments on time. You try to make it look like everyone can pay for anything. There are different mortgages and different ways to pay them off. The problem was the retarded banks allowing pretty much EVERYONE to have one that they knew couldn't be payed for in the end.
Associated Press: Scarcity of Jobs puts more at risk of forclosure
Aug. 26, 2010
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. And 6 million more will be lost to foreclosure over the next three years, by some estimates.The number of Americans missing payments and falling into foreclosure has gone up along with unemployment.
@teagar3 Thus an endless borrowing cycle which led to a slump in demand. Dont' forget that a lot of components we use everyday come from overseas. There are only about 300 million Americans living here. And even so Our GDP output is still really good if you researched it. Our ways of managing things financially are NOT!
@EpiDemic117 Christian Science Monitor reports Aug. 26, 2010 that 1 and 10 mortgages are falling into forclosure.
The LA times reports "Economists attributed the increase in newly delinquent mortgages to the country's persistently high unemployment." Aug. 27, 2010
Don't you think that the loss of millions of Jobs may have had something to do with the high number of home forclosures?
@teagar3 Protectionism was not only promoted by the democratic republic of north korea (which is a shithole now). But it was also highly promoted by the USSR. Which in a result DID NOT WORK! The only thing they managed to produce successfully as domestic product was heavy industrial goods. Small products manufacturing and services didn't work out so great because of the fact that there was to much shit for the government to keep track of and control of as well.
@EpiDemic117 but instead of looking at imperfect models in which I have no knowledge of, lets instead look at the USA model from 1940 to 1992. Do you think the average American was worse of then, then they are today? Would you not agree that a Republican led us into the Great Depression, and a Republican led us into this so call Great Recession? Meaning Herbert Hoover & George Bush. You probably won't and that is why will never agree.
@EpiDemic117 Bill Clinton? Good one LOL! George Bush in office in 2000 Recession happens in 2007 - oh blame in on a democrat that was in office over 7 years prior... But I must agree with you, I don't like him either, because of Bill Clinton we have Free Trade. And jobs left our shores during his watch, but went supersonic during Bushes reign.
@teagar3 ", because of Bill Clinton we have Free Trade" Now you really don't know what you are talking about. Free trade has been going on since the beginning of the United state. Globalization has been going on since the 60's. And because of free trade and globalization. Other nations had the chance to experience growth and opportunities. it has also DRAMATICALLY increased the quality of life for us and other nations as well.
China seems to be thriving on protectionism while my corporatocracy of a government has brainwashed the sheep of the population on how much better we all would be if we watched all the jobs leave. Well the jobs are gone and the country is a bottomless pit of a mess. How many states and municipalities are going bankrupt? Guess the proof is in the pudding.
@westonsz "China seems to be thriving on protectionism " HAH! I beg to differ! there are certain areas that have protectionist policies and there are others that do not. the ones that do look like a shithole right now.
@EpiDemic117 China has no plans to allow our goods to freely compete in their market. This is fact. The United States is no more than a springboard for China to become a wealthy nation at the expense of the U.S. America is absolutely screwed with the idiots in congress. It would save the federal treasury lots of money just to send them all home. Everything they do is a disaster. High unemployment and records deficits are the new normal when all the jobs leave the country.
@westonsz "America is absolutely screwed with the idiots in congress." I Agree with some of that, But what government doesn't have some form of corruption?
"High unemployment" Well It is a recession after all, And this is NOWHERE near as bad as the great depression in the 1900's, You aren't starving to death are you? You seem to have power going to your computer, You are also able to bathe every day and eat hot meals. What are we really suffering from? It's gonna straighten out in a few years
@EpiDemic117 High unemployment for many reasons. I was hiring a few months back and had 3 unemployed applicants turn down the job. For things to get better people have to be willing to work but at the same token I have to be able to pay wages that are a better deal than unemployment. It's a zero sum game. The lost wages due to outsourcing pricing pressure now go to the ceo's. Handing the majority of the weath to the very few does little to improve anything.
@EpiDemic117 Yes it is Capitalism at all cost but won't support any growth here because it slashes the buying power of the majority. Henry Ford understood this when he decided to pay his workers the 5 dollars a day wage. They could afford the product which pushed the sales higher. Today's corporate leaders are there for the one shot bonus at all and any cost. There are no Henry Ford type corporate leaders with great ideas that not only benefit the company but the workers as well.
The great suffering is ahead of us. Look up “Are we Smarter than Yeast” on the web. Exponential growth in an economy that has finite resources cannot be sustained. This also applies to the population and this planet is already in overshoot.
Protectionism and big business actually go hand in hand. It is the big capitalists themselves who support protectionism because it shields them from foreign competition.
Well China, though currency manipulation, has effectively a tariff against the US that is probably over 30 percent. Hummm China's economy is doing dam well compare to the US. China is not an exception. The historic data strongly suggests that countries with a decent tariffs do dam well. It is especially important for countries to protect infant industries.
I can't believe how many stupid American college kids there are that will swallow this hook to pass their classes and hopefully get a job after school... No understanding of history and the real battle that's been waged. You are being taught the economic thought of the British world ruling class... keep on scraping kiddies... if it doesn't make perfect sense, it's because it's not supposed to. It's meant to confuse you and rationalize a disease.
@phospholipasec What a bizarre comment. I can only assume you didn't watch the video. I state the mechanism of tariffs, without saying such protectionism is a good or bad thing. No - I mean no - economist argues with the mechanism of a tariff, they have opinions on whther they benefit an economy or not. Consequently, your comment makes no sense - I am just saying HOW a tariff operates.
@phospholipasec I agree with what you said 100%. If you really want to know how it works in the real world go read John Perkins' book, "Confessions of an Economic Hitman" and leave the theoretical nonsense in the 500 page econ textbook.
@phospholipasec You sound like Marx on cocaine. Pajholden is simply xplaining the mathematical mechanisms of a tariff. What's with your drivel about "the real battle that's been waged". Do you do lously movie trailer voiceovers?
Wouldn't it be a good idea for speeding up development and reducing poverty if the rich countries allowed the poor ones to protect themselves with tariffs (because of the impact free trade with state subsidized agricultural products have on countries in the third world). While on the other hand allowing them to develop by not restricting them to only exporting raw materials by putting high tariffs on refined goods.
What about all the jobs that have been lost by working middle class Americans due to lower tariffs or no tariffs, ie liberalized trade. Foreign competition, like the Japanese automakers have been able to swallow up huge chucks of the automobile market in America as a result. Have you driving through Detroit lately? Of course, we notice that Japan doesn't allow foreign automakers to swallow up huge portions of the auto market in Japan, because they impose a tariff...
rockisphone: This aint BS this is economics. You clearly have no understanding of the advantages of international trade. As a result, I would recommend you watch the video on comparative advantage by Mr Holden to get a better view of an economic basic.
This is all Bull. Free Trade Destroyed all manufacturing in the United States which was the back bone of our country. Free Trade put millions out of jobs. Americans cannot compete with Slave Labor. We need tariffs to bring back manufacturing. How could anyone in their Right Mind say Tariffs will hurt us? The U.S. now depends on consumers which are now going broke. Need to stop paying farmers not to grow and impose tarriffs on forien products. If you are not an American I am sure you won't agree
hi, i was wondering if there is a written version of this video so i can reference it for my international business essay? please, please get back to me as this is a really good presentation on protectionism.
You are ridiculously good. They should hire you at our school. The teachers here hand out books and booklets and send us off to the library to study to fight on our own :D Survival of the fittest, Pretty much. Keep up the great work. You are really encouraging and calm.
You don't talk about WHY the world can supply goods at a cheaper price thereby missing the boat completely. Let's look at why, shall we? Slave labor, child labor, prison labor, no enivronmental laws, no healthcare costs, no labor laws, no safety standards in the work place, etc, etc, etc. I love you economists. You do all your thinking in a vacuum. "Just assume their is an equal playing field of peasants everywhere, now let's talk supply and demand curves." A thing of beauty...in a VACUUM!
@bucklerfoxton - That's like saying: "What's the point of finding the area of a square? It's never that simple!". Well of course it's not, but all theory requires a foundation. Complex ideas and understandings don't just crop up out of the blue. All economists realize that they cannot see the world in theoretical diagrams, and indeed they don't. By using the "wake up America!" arguement, you simply come off as arrogant, as though you have a solution to inequality. Don't be so redundant.
Reaganomics and "free trade" did not work. You are witnessing the result of those failed policies over 30 years. Worst economy since the Republicunt Great Depression! We need tariffs and FAIR TRADE!
Here's another piece of garbage put out there to brainwash the American middle class: tax cuts create jobs. BS. Tax cuts allow rich people to be richer. The big brainwash is that if you tell the working class that they will have more jobs if you cut rich people's taxes, maybe they will buy it and rich people can become even richer.
Tariffs are one of the few things that would save this country from the economic collapse that you dumbass economics professors have gotten us into. Construct tariffs against the crap imported from China that ends up on MalWart shelves and see how fast Americans would jump at the chance to compete on an even playing field. We could buy American again and become a self-sufficient country instead of being owned by China.
love the how i met your mother quote! and this video helped so much, i wish my econ professor could be as helpful as you.
taheritier 1 day ago
You're my hero.
RoryMcAuleysShampoo 5 days ago
excellent vid..tons of help!!!!
giggiddyable 2 weeks ago
am i right in saying that, on the graph, x = quantity and y = price? i wish people labeled axis clearly!
nimajneb2005 2 months ago
Thank you, so much!
LucretiaVanPelt 2 months ago
This has been flagged as spam show
@TijoKJose,
As long as government is needed and must be financed, it must be financed somehow. There are two ways to do this. You can either tax income or sales. A tax on imports is the lesser of two evils.
The Federal Reserve didn't exist until 1913, but we had a national banking system in place before the Fed.
MegaAstrodude 2 months ago
Comment removed
MegaAstrodude 2 months ago
How can you get a better explanation than this? Awsome. Please keep on doing these types of videos!!!!!!!!!!!!!!
alezziothepilot94 2 months ago
without tariffs prices drop because of slave labor and and soon enough we dont have the money to purchase anything and the markets crash. hold on that is what is happening.
kartercountry1 3 months ago
@MegaAstrodude
I ran out of characters, so my reply is in 3 parts.
Part 2:
The tariff will never compensate for the dead weight loss to society (that’s the 3 triangles above and next to the tariff rectangle). The gain in consumer surplus from free trade exceeds the loss in producer surplus + the extra income taxes. So, basically free trade is always a good thing.
TijoKJose 3 months ago
Comment removed
TijoKJose 3 months ago
@MegaAstrodude
I ran out of characters, so my reply is in 3 parts.
Part1:
The diagram already accounted for the opportunity cost of higher income taxes. The horizontal rectangle that goes between Quantity4 and Quantity5 is the ‘positive externality’ provided by the tariff. It represents the extra revenue that the government gets from the tariff and it’s also equal to the amount of extra income taxes we would have to pay in the world without the tariff.
TijoKJose 3 months ago
tarriffs = survival of the fittest.
86Ivar 3 months ago
This theory sucks if this is the reason for free trade then this will be the end of the middle class and the world accepting slave wages for cheaper products. Hold on prices haven't dropped but corporate profits have risen. Are we really that stupid. WAKE UP AMERICA!!!!!!!!!
kartercountry1 3 months ago
@kartercountry1
Without free trade, prices would be skyrocketing! The fiat currency, deficit spending, bureaucracy, and welfare/military spending in America have caused massive inflation. The Consumer Price Index (CPI) underestimates the amount of inflation, because free trade has kept prices down. We need more free trade to prevent more inflation!
-My name is Tijo, I’m an Economics major at DePaul University, and I’m voting for Dr. Ron Paul.
TijoKJose 3 months ago
I don't understand the moralizing at the end. Rising consumer costs can represent the internalizing of human costs in colonial markets, where slave wages and oppression can drive down world supply curves.
etzel33 3 months ago
THANK YOU !!!!!!!!
alezziothepilot94 3 months ago
@MegaAstrodude The wages will only increase for a short amount. After that it's huge economic decline. It's not the governments job to dictate what is good for the market. they've only screwed things out of proportion so far.
tehatemachine 3 months ago
@tehatemachine,
"It's not the governments job to dictate what is good for the market."
If it isn't, then it isn't the governments job to have taxes, an FDA, FTC, labor laws, minimum wage, etc. If you are going to regulate at all, you need to use trade policy to enforce those regulations if you're going to have any quality jobs at all.
Historically, moderate tariffs drove the US economy to around 6% growth annually from 1869-1913.
MegaAstrodude 3 months ago
we need to impose tariff on china india and ther slver y work force and thier state own company im vietnamese most of the co own by communist over there a prison is like a plantation in usa bak in the day free slave laobr vs a american worker we will be losing
samantha34ize 4 months ago
This has been flagged as spam show
@samantha34ize,
India is clean and also doesn't have much manufacturing. " most of the co own by communist over there a prison is like a plantation in usa bak in the day free slave laobr vs a american worker we will be losing"
Notice the antebellum South always hated tariffs and all of the early antislavery advocates championed them.
MegaAstrodude 4 months ago
You my good sir are an amazing teacher/professor!!
roughryder5 5 months ago
4:43 When the price is P2 it's not consumer surplus but it's a shortage.
cinqueottavi 5 months ago
@cinqueottavi
It's the "consumer surplus," as in the difference between what people were willing to pay and what they actually did pay (the area below the demand curve and above the price). He's not talking about a surplus of goods.
HelplessVictim 4 months ago
@gohikenh
trade liberalisation can decrese the likely hood of war because countries become more dependant and have trouble coping if the trade is cut off, in addition the problem of war is minor one, simply because war is considered MAD. Mutually Agreed Destruction or in otherwords everyone will die because we have such strong offensive technology(nuke), but no where near as much defensive technology.
clichedusernames101 5 months ago
@clichedusernames101 Free Trade is not going to prevent war. If anything it might encourage it. Many Americans are bitter at China for taking away their jobs and buying them out. Foreigners own over 48% of our coal mining industry. A successful war would eliminate taxes (if any) they pay to the US Government and would eliminate Americans as middle men. They could take what they want without us in the way. Free Trade is a recipe for war.
gohikenh 5 months ago
@gohikenh That is inncorrect. Free trade reduces wars and conflict as long as both countries have it. when companies try to propose tariffs towards other international companies. They are trying to eliminate competition Which isn't free trade.
tehatemachine 3 months ago
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@gohikenh That is incorrect. Free trade reduces wars and conflict as long as both countries have it. when companies try to propose tariffs towards other international companies. They are trying to eliminate competition Which isn't free trade.
tehatemachine 3 months ago
By removing tariffs we went from a producer nation to a consumer nation. It has made us an addict of cheap Chinese goods. We go into to debt to feed that addiction. Cheap really is expensive.
BTW I am not ashamed of the word protectionism. It is a good word. It protects us.
gohikenh 6 months ago
Tariffs protected our manufacturing industry. Now we lost it and its jobs. For a time the unemployed found work in the consumer or service market. But with a collapse of the housing bubble we have come to terms with reality. We spent our savings, took out loans, and sold off our assets to keep consuming when we should have been producing. Now they own much of our industry and take the profits. We are left with debt we have to pay off with interest to them. Removing tariffs caused this.
gohikenh 6 months ago
@gohikenh
The removal of tariffs didn't cause any of those problems. It was government regulations and incompetent GES that put us in this situation. We need to reduce tariffs to combat inflation.
TijoKJose 2 months ago
@TijoKJose Sorry, not enough tariffs & government regulations caused the economic problems. Paultards would like you to believe that republicans have always supported free trade, but that is not the case. Abraham Lincoln was one of the strongest supporters of tariffs and regulations. Regulations prevent the abuses of the strongest. Libertarianism leads to the survival of the fittest. There is no regard for the country as a whole. Wake up! I want return of 50s when America was #1
gohikenh 2 months ago
@gohikenh,
This is true. Republicans were the party of the tariff for a long time. On economics, Ron Paul is closest to the "Bourbon Democrats" represented by Grover Cleveland, but even Grover Cleveland favored having tariffs at about 25%.
In the 1950s, we didn't have high tariffs either. We just didn't trade with China. You'd have to go back to the 1920s to find a time when the tariff drove our manufacturing.
MegaAstrodude 2 months ago
@gohikenh
"Libertarianism leads to the survival of the fittest."
Because you prefer the unfit to survive? Perhaps you wish your mother had three arms and your father had five legs... it would make for an interesting beast, don't you think? Sadly, nature disagrees.
You can try to fight the laws of physics all you want, but all you end up doing is creating more suffering for yourself and everyone around you. No one is better off. At least in the marketplace *someone* wins.
zq926 2 months ago
@zq926 The laws of physics have to do with matter and energy not survival of the fittest which is a Biological survival tool. I am big into nature as my channel suggests. The weak, young and old animals die first. Humans need to move beyond a survival mode not only because it is unnecessary but also because it is the right thing to do. We should provide for the elderly & handicap & make sure everyone has a descent standard of living.
gohikenh 2 months ago
@zq926 Second, free trade puts the entire nation in jeopardy. I guess there is no rules in the survival of the fittest. China is playing by none. They are manipulating their currency (devalued currency hastens demise of US companies by price undercutting) and stealing intellectual property and reselling it to us. Additionally, they put tariffs on products we can compete with them with like certain food products and now small US cars. Go to my other channel Tariffs4America for more info
gohikenh 2 months ago
@zq926 Third, survival of the fittest is unnecessary and a sharing system soon will be necessary. SOTF is unnecessary because we can create a society like Sweden with plenty for all (I actually am Libertarian in personal freedom and advocate voluntary opt-out yet a safety net always there). Read "Why the future doesn't need us". Technology is making most human labor obsolete. Gov't needs not control your life but give you the ability to have control otherwise you'll end up on the streets
gohikenh 2 months ago
@zq926 Go to my channel by clicking gohikenh and clicking featured video How Free Trade Hurt America's Manufacturing. Then click tariffs4America to get to the homepage. You will learn that freedom is not merely the right to say and do what you want. It is not having bosses telling what to do or landlords stealing your money or starving on the streets b/c the system doesn't need you. It is economic freedom. It is the freedom to have leisure time and sleep in a warm house.
gohikenh 2 months ago
Free trade has led to America's trade imbalance. That means we buy more from them than they buy from us. (That wouldn't hurt us so bad if the scale was not so massive.) If I owned a store and I was always buying from everyone else and they were hardly buying from me, I would go broke. America too is broke. We have to sell off everything (including Volvo from Ford) to keep going. Obama calls them buying us up foreign investment. I call it being stupid. They get the profits; maybe we the paychecks
gohikenh 6 months ago
Tariffs keep money from leaking out of the country. Long ago Lincoln (or Ingersoll) rightly observed: "If we purchase a ton of steel rails from England for twenty dollars, then we have the rails and England the money. But if we buy a ton of steel rails from an American for twenty-five dollars, then America has the rails and the money both."
Tariffs keep wealth from leaking out. USA, Japan, Germany, and S Korea became rich because of tariffs. W/o tariffs we are becoming poor.
gohikenh 6 months ago
This man knows a lot in his own narrow system, but he is ignoring the bigger picture. Tariffs protect our industry. In case of a long war, where will we be if China and India make our goods? What about losing good paying factory jobs for minimum wage jobs?? Or our nation sovereignty and our economic independence? This man is inadvertently doing us a disservice. Unfortunately we believe him because he is a teacher and he uses seemingly complicated diagrams. I'm educated beyond that though.
gohikenh 6 months ago
your videos are awesome
goPistons06 8 months ago
I FUCKING LOVE YOU!!! YOU ARE LEGEN.......... WAITT FOR ITT ................ DARYY!!
LEGENDARY MY FRIEND!! THIS WILL HELP ME IN MY EXAM TOMORROW! THANKS A LOTT!!! KEEP IT UP! =DDD
9lade 8 months ago 23
Mate you've lost the plot. I am an economics student - hence why have watched this video so therefore do not have a "bathroom business". Your views are so biased its ridiculous, calling mexicans "3rd world scum" - your just a fucking idiot.. also if they are working for less than minimum wage then it is illegal, and the employers fault, not the government. And its not really flooding labour market because Mexicans usually do the jobs americans dont want to do, not the highly skilled jobs.
Mscottbreezy 8 months ago
How can we compete with the slave labor wages of China ? It seems like the manufacturing sector in America is dead, isn't the ridiculously low rates of pay in China a big reason for that death ?
biggbaddjohn 8 months ago
@biggbaddjohn,
Another big reason is the taxes the government imposes on manufacturers in America. There's an export tax, but there's no significant import tax on the most relevant goods! If you're making goods in China, you don't have to pay US income tax on money made overseas.
It's the anti-American establishment that is hurting manufacturing by taxing it to death to favor the industries of hostile countries.
MegaAstrodude 8 months ago
I dont know how to thank you.
koraishi 8 months ago 5
This was helpful thanks
bazaraza1 9 months ago
Thank you, very nicely explained!
aBrilliantGerman 9 months ago
From 1871 to 1908, 5 out of a span of 38 years saw the U.S. price exceed the English price by the tariff margin or greater.
33 out of 38 years - 87% of the time span - the U.S. price did not take full advantage of the tariff to increase its profits.
As the U.S. volume ramped up, the U.S. price eventually dropped below the English price.
Not exactly a U.S. steel industry hiding behind a tariff wall to price-fix the U.S. consumer for high profits.
machinehead61 9 months ago
Sir, I have commented on your videos before, but let me just say again a big THANK YOU for putting them up. It is much appreciated. Greetings from the UK.
aputhegreat 9 months ago
Adam smith quite possibly?
jksol1 9 months ago
Sir you are the actual farther of ECONOMICS
11sahiljain 9 months ago
THIS IS EXCELLENT... I study at the Uni of nottingham, have got a micro exam on Monday about this, and this quick class that you give to us is excellent,, would love to be ur student!!! thanks and u should know that ur contributing your own part to the society just by doing this!! also saw the video on comp and absol advantage and is very clear as well
juanmaargentina 9 months ago
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Thank you so much for your videos! Although I understand the concept of tariffs and quotas, you gave me a better insight into the subject, especially useful in essay writing. Keep up the good work!
I like the charisma btw
JimmyNaraine 9 months ago
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JimmyNaraine 9 months ago
i wonder how much it would cost me to hire paj as a personal tutor for my alevels...
wiigwamm 10 months ago
@wiigwamm Well it seems like he's doing it free here on youtube.
Long live Phil!
CreativeMaster1994 9 months ago
Thanks man!
vTVBerlin 10 months ago
Thank you very much :) helped a heap with my economics essay :D
higgyj145 10 months ago
Thanks. My teacher showed me this video, but in class it didn't help, I looked at it in my own time and understand it so much more. Thanks.
Wandawaisu 11 months ago
Now the USA has destroyed labor so much working people can not afford to live int eh USA, Bums earn more money begging then capitalist pay people to work, and now the government does not even have enough tax revenue for a functioning government. Greedy evil capitalist pigs have killed the USA.
TheThedot 1 year ago
@TheThedot - Now, that is a very overgeneralised statement. It is the free market system that dictates wages rather that the USA. However, like 90% of all countries in the world, the USA has a minimum wage demonstrating a level of government intervention to allow for people at the bottom of the socio-economic ladder to have a decent income. It is subjective whether this minimum wage is sufficient but the fact that it is implemented contradicts your argument that the USA have "destroyed labour"
Mscottbreezy 8 months ago
@Mscottbreezy Not at all. In our USA market the rich business leaders loby our leaders 24/7 to allow end HB1 visas in the lower wages, force law enforcement to look the other way and allow millions of illegals to drive wages even more down, and ship as many jobs as possible to china so they can use Chinese child slave labor to kill American standard of living. You are a total fool if you think that is a free market. The rich are 100% mobilized all out war on American workers.
MrAppleseed88 8 months ago
@MrAppleseed88 I disagree with your cynical viewpoint, just as I did in the first place with this other guys ridiculously biased anti-establishment line. And YOU are the fool if you think the state actually wants a poor standard of living for its people, wasnt it just last year that Obama reformed your health service to allow lower income groups a decent level of cover? And just because there are more immigrants in America - it doesnt mean the wages will decrease due to the national minimum wage
Mscottbreezy 8 months ago
@Mscottbreezy It does not mater what you think. Something given by obama has no value, only so the rich do not have to pay the upkeep of their slave work force. People should be paid enough money via work to cover their own cost, we do not need obama hand outs... If you are stupid enough to thinking flooding the labor market with millions of 3rd world scum has no effect on wages, you should just kill yourself. I bet you can not even wipe your bathroom business well.
MrAppleseed88 8 months ago
Thank you! I missed the tariffs lecture in my international econ class and just looking at the textbook was baffling...now it totally makes sense. Great videos!!
sgro328 1 year ago
keep it up! nice and simple! good!
benzesty 1 year ago
It would help the worlds poorest people more to get rid of all tariffs then to send aid to them.
Europes tariffs against Africa are ridiculously high which not only forces African farmers to drop prices under market value but also stagnates productivity.
Farmers in Africa doesn't get enough money back to invest in technology to grow their production and the European economies loses on the lost consumer surplus that he is talking about.
Salladsdressing 1 year ago
thanks!! great explanation
Josico2008 1 year ago
YOU ARE AWESOME MAN! I understood more from you in seven minutes than I did listening to 2 weeks of econs lectures in school! thanks so much!
nobluehair56 1 year ago
thank you for the video, u've just helped with my college economics.
silent4fail 1 year ago
Thank you for this video. Very clearly explained.
holgagraphy 1 year ago
This helped me a lot - thank you very much for the excellent explanation.
Dude5Sweet 1 year ago
my exam is in a few hours!and this really helped me! thanx a mil!! :)
mimi0lala 1 year ago
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my exam is in a few hours!and this really helped me! thanx a mil!! :)
mimi0lala 1 year ago
my exam is in a few hours!and this really helped me! thanx a mil!! :)
mimi0lala 1 year ago
The WTO sounds like a fine idea if certain countries actually abided by it.
baigandine 1 year ago
I'm no economist but it seems to me some of the extra price will be eaten by the people at the top growing fat on international trade. They will have to keep their price low to continue selling, so the rich internationalists lose.
baigandine 1 year ago
U can certainly win an award or something !
abigailhmm 1 year ago
great, thanks sir :d i got it better than reading confusing and boring book :D
littlemisstroublexxx 1 year ago
clear and thorough as always, thank you Sir!
JOHNSABERI 1 year ago
really helpful video. this made my econ class makr so much more sense
mrpotato623 1 year ago
But if industry is being to depleted in level of danger they would have a positive affect. When you have a situation were country like send products to the US and Europe full and return empty you have a severe imbalance in trade. The real reason why politicians don't want protectionism to protect the interest of their friends
MrWorldking 1 year ago
Hey pajholden, thanks for this great video. I have one question if anyone can answer!
What would the diagram look like if we're dealing with only two countries: A and B. What would happen if country A placed a tariff on goods imported ONLY from country B, and not the whole world. Would the supply curve (B, instead of world) still be horizontal? How would it then shift if imports are placed?
thanks!
DaWanderer 1 year ago
you are THE teacher... Mr, you just saved my exam tomorrow!
tomassssa 1 year ago 17
@tomassssa FAIL! Supply and Demand is NEVER on a Linear scale! Think!,..Is there is a demand for finger cuffs in CHINA?
kffive 2 months ago
"stop" HAHA
DaWanderer 1 year ago
Youtube Video -> "Free" Trade Truth & Warning about the North American Union - from "Original Intent"
teagar3 1 year ago
and all you protectionist IDIOTS should listen to this guy in the vid. He knows economics. YOU MORONS DO NOT!
EpiDemic117 1 year ago
@EpiDemic117 He knows so well many local and state governments are going bankrupt here and they are asking for a raise in my taxes out of my income that has not gone up for 7 years. Moving all the jobs elsewhere is just working out so well here. The proof is in the pudding. In the 1960's we had jobs and an economy and parents could be there for their kids. America is a total mess now.
westonsz 1 year ago
@westonsz "In the 1960's we had jobs and an economy" Well it's 2010 and I Have a job and I still invest apart of this local economy to. Are you referring to mass industrialization so the United States could compete in the Cold war against the soviets and supply lines run into Vietnam?
"Moving all the jobs elsewhere" When have jobs EVER been static? They always move. Certain items are manufactured in different countries. each Country has a special trait.
EpiDemic117 1 year ago
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teagar3 1 year ago
Tariffs increase GDP (gross domestic products), they also increase GDI (gross domestic income), what this means is more products are produce within the domestic country, which requires more jobs domestically, all of which helps the economy of that country, and far outweighs the minimal loss of dead weight.
teagar3 1 year ago
@teagar3 "Tariffs increase GDP" Somewhat true
"they also increase GDI" Actually they do not. Just remember. Protectionism is what extended the great depression. some GDP can be comprised of imported goods. Such as those with parts that are imported but assembled here. Which can also account as GDP. If everything was produced here. Everything would be TO DAMN EXPENSIVE! just imagine buying a computer keyboard for 200$. And that would be the base price for all keyboards. HELL NO!
EpiDemic117 1 year ago
@EpiDemic117 I am a protectionist, and believe that Henry Ford had the perfect model; if you want the people in the United States to buy your product then you better provide them with a livable wage. My job was outsourced, let’s see now, 2002, that’s been 8 years ago, been unemployed ever since, can't afford a $200 keyboard, but I can't afford a $20 dollar keyboard either. But if I had a job, I would be able to earn enough to buy one. Free Trade is the cause extended unemployment. for Americans
teagar3 1 year ago
@teagar3 "Free Trade is the cause extended unemployment. for Americans" Or maybe increasing unemployment was due to our housing market which crashed due to mortgage loans which didn't require any real physical identification or SSN which was also promoted by the government in the mid 90's that caused our market crash? You want to see countries that disagree with Free trade. Look no further than north korea. imagine us looking like that.
EpiDemic117 1 year ago
@EpiDemic117 "Or maybe increasing unemployment was due to our housing market which crashed due to mortgage loans which didn't require any real physical identification" Or maybe the housing market crash was due to people loosing their jobs and unable to pay their mortgages, it's still happening today.
teagar3 1 year ago
@teagar3 "Or maybe the housing market crash was due to people loosing their jobs and unable to pay their mortgages" Or maybe some of the people who did their mortgages didn't have a clean track record of making payments on time. You try to make it look like everyone can pay for anything. There are different mortgages and different ways to pay them off. The problem was the retarded banks allowing pretty much EVERYONE to have one that they knew couldn't be payed for in the end.
EpiDemic117 1 year ago
@EpiDemic117
Associated Press: Scarcity of Jobs puts more at risk of forclosure
Aug. 26, 2010
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. And 6 million more will be lost to foreclosure over the next three years, by some estimates.The number of Americans missing payments and falling into foreclosure has gone up along with unemployment.
teagar3 1 year ago
@teagar3 Oh please save the fear tactics and propaganda for some other media loving tool.
EpiDemic117 1 year ago
@teagar3 Thus an endless borrowing cycle which led to a slump in demand. Dont' forget that a lot of components we use everyday come from overseas. There are only about 300 million Americans living here. And even so Our GDP output is still really good if you researched it. Our ways of managing things financially are NOT!
EpiDemic117 1 year ago
@EpiDemic117 Christian Science Monitor reports Aug. 26, 2010 that 1 and 10 mortgages are falling into forclosure.
The LA times reports "Economists attributed the increase in newly delinquent mortgages to the country's persistently high unemployment." Aug. 27, 2010
Don't you think that the loss of millions of Jobs may have had something to do with the high number of home forclosures?
teagar3 1 year ago
@teagar3 Protectionism was not only promoted by the democratic republic of north korea (which is a shithole now). But it was also highly promoted by the USSR. Which in a result DID NOT WORK! The only thing they managed to produce successfully as domestic product was heavy industrial goods. Small products manufacturing and services didn't work out so great because of the fact that there was to much shit for the government to keep track of and control of as well.
EpiDemic117 1 year ago
@EpiDemic117 but instead of looking at imperfect models in which I have no knowledge of, lets instead look at the USA model from 1940 to 1992. Do you think the average American was worse of then, then they are today? Would you not agree that a Republican led us into the Great Depression, and a Republican led us into this so call Great Recession? Meaning Herbert Hoover & George Bush. You probably won't and that is why will never agree.
teagar3 1 year ago
@teagar3 "Do you think the average American was worse of then" Why yes i do! We today aren't starving to death.
"and a Republican led us into this so call Great Recession?"
No i do not agree, Though Bill Clinton was an awesome president it was in the end the fair housing act that got us into this mess.
EpiDemic117 1 year ago
@EpiDemic117 Bill Clinton? Good one LOL! George Bush in office in 2000 Recession happens in 2007 - oh blame in on a democrat that was in office over 7 years prior... But I must agree with you, I don't like him either, because of Bill Clinton we have Free Trade. And jobs left our shores during his watch, but went supersonic during Bushes reign.
teagar3 1 year ago
@teagar3 ", because of Bill Clinton we have Free Trade" Now you really don't know what you are talking about. Free trade has been going on since the beginning of the United state. Globalization has been going on since the 60's. And because of free trade and globalization. Other nations had the chance to experience growth and opportunities. it has also DRAMATICALLY increased the quality of life for us and other nations as well.
EpiDemic117 1 year ago
i support this we had this until the 70's and ever since we got rid of it america has never recovered
NERDkingHERE 1 year ago
Thank you so sumch, it is really help me to understand better about the tariff how it works...
DianaQi 1 year ago
fuck off we dont impose anything from china in the USA and our economy is shit! So explain that.
hijackednation 1 year ago 2
China seems to be thriving on protectionism while my corporatocracy of a government has brainwashed the sheep of the population on how much better we all would be if we watched all the jobs leave. Well the jobs are gone and the country is a bottomless pit of a mess. How many states and municipalities are going bankrupt? Guess the proof is in the pudding.
westonsz 1 year ago
@westonsz "China seems to be thriving on protectionism " HAH! I beg to differ! there are certain areas that have protectionist policies and there are others that do not. the ones that do look like a shithole right now.
EpiDemic117 1 year ago
@EpiDemic117 China has no plans to allow our goods to freely compete in their market. This is fact. The United States is no more than a springboard for China to become a wealthy nation at the expense of the U.S. America is absolutely screwed with the idiots in congress. It would save the federal treasury lots of money just to send them all home. Everything they do is a disaster. High unemployment and records deficits are the new normal when all the jobs leave the country.
westonsz 1 year ago
@westonsz "America is absolutely screwed with the idiots in congress." I Agree with some of that, But what government doesn't have some form of corruption?
"High unemployment" Well It is a recession after all, And this is NOWHERE near as bad as the great depression in the 1900's, You aren't starving to death are you? You seem to have power going to your computer, You are also able to bathe every day and eat hot meals. What are we really suffering from? It's gonna straighten out in a few years
EpiDemic117 1 year ago
@EpiDemic117 High unemployment for many reasons. I was hiring a few months back and had 3 unemployed applicants turn down the job. For things to get better people have to be willing to work but at the same token I have to be able to pay wages that are a better deal than unemployment. It's a zero sum game. The lost wages due to outsourcing pricing pressure now go to the ceo's. Handing the majority of the weath to the very few does little to improve anything.
westonsz 1 year ago
@EpiDemic117 Yes it is Capitalism at all cost but won't support any growth here because it slashes the buying power of the majority. Henry Ford understood this when he decided to pay his workers the 5 dollars a day wage. They could afford the product which pushed the sales higher. Today's corporate leaders are there for the one shot bonus at all and any cost. There are no Henry Ford type corporate leaders with great ideas that not only benefit the company but the workers as well.
westonsz 1 year ago
@EpiDemic117
The great suffering is ahead of us. Look up “Are we Smarter than Yeast” on the web. Exponential growth in an economy that has finite resources cannot be sustained. This also applies to the population and this planet is already in overshoot.
Lotus4115 1 year ago
From 1871 to 1908, 5 out of a span of 38 years saw the U.S. price exceed the English price by the tariff margin or greater.
33 out of 38 years - 87% of the time span - the U.S. price did not take full advantage of the tariff to increase its profits.
As the U.S. volume ramped up, the U.S. price eventually dropped below the English price.
Not exactly a U.S. steel industry hiding behind a tariff wall to price-fix the U.S. consumer for high profits.
machinehead61 1 year ago
An invaluable member of the YouTube community, thank you very much Mr Holden.
gazakhstan 1 year ago
you would have been a perfect tutor!
rachel2k9 1 year ago
Protectionism and big business actually go hand in hand. It is the big capitalists themselves who support protectionism because it shields them from foreign competition.
ComradeFlorian28 1 year ago
Thank you. I love it when a lecturer speaks perfect English!
hung2well 1 year ago
thanks, much appreciated.
tisthyfate 1 year ago
Well China, though currency manipulation, has effectively a tariff against the US that is probably over 30 percent. Hummm China's economy is doing dam well compare to the US. China is not an exception. The historic data strongly suggests that countries with a decent tariffs do dam well. It is especially important for countries to protect infant industries.
jcriddle4 1 year ago
Beautifully explained!
MrPlender 1 year ago
This is how you create huge trade deficits, he forgets to mention that.
ford2581 1 year ago
cheers bro
mstk1 1 year ago
My IB Higher Level Econ exam is tomorrow, your videos have helped so much! Thank you! God Bless!
carlyle101 1 year ago
@carlyle101 what is ur name bro?
siameh02 1 year ago
thank you!!
sliddersladder 1 year ago
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I'm confused about consumer surplus and producer surplus.. what exactly is it and what does it mean for the economy?
Nahla0000 1 year ago
I'm confused about consumer surplus and producer surplus.. what exactly is it and what does it mean for the economy?
Nahla0000 1 year ago
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I can't believe how many stupid American college kids there are that will swallow this hook to pass their classes and hopefully get a job after school... No understanding of history and the real battle that's been waged. You are being taught the economic thought of the British world ruling class... keep on scraping kiddies... if it doesn't make perfect sense, it's because it's not supposed to. It's meant to confuse you and rationalize a disease.
phospholipasec 1 year ago
@phospholipasec What a bizarre comment. I can only assume you didn't watch the video. I state the mechanism of tariffs, without saying such protectionism is a good or bad thing. No - I mean no - economist argues with the mechanism of a tariff, they have opinions on whther they benefit an economy or not. Consequently, your comment makes no sense - I am just saying HOW a tariff operates.
pajholden 1 year ago 45
@phospholipasec I agree with what you said 100%. If you really want to know how it works in the real world go read John Perkins' book, "Confessions of an Economic Hitman" and leave the theoretical nonsense in the 500 page econ textbook.
bucklerfoxton 1 year ago
@phospholipasec You sound like Marx on cocaine. Pajholden is simply xplaining the mathematical mechanisms of a tariff. What's with your drivel about "the real battle that's been waged". Do you do lously movie trailer voiceovers?
xiangyik 1 year ago
@xiangyik thanks xiangyik, :) just what I was thinking!
pajholden 1 year ago
Thank u very much uve helped me alot to understand the tariff. not even my teacher could explain this to me. but u explain it very good!!
thx again :)
prinsessan11 1 year ago
Wouldn't it be a good idea for speeding up development and reducing poverty if the rich countries allowed the poor ones to protect themselves with tariffs (because of the impact free trade with state subsidized agricultural products have on countries in the third world). While on the other hand allowing them to develop by not restricting them to only exporting raw materials by putting high tariffs on refined goods.
lol101lol101lol10199 1 year ago
@beletibeleti get Realplayer, download the video, then use Realplayer's converter to convert video to desired format. Hope this helps.
SoSyNiKaL 1 year ago
What about all the jobs that have been lost by working middle class Americans due to lower tariffs or no tariffs, ie liberalized trade. Foreign competition, like the Japanese automakers have been able to swallow up huge chucks of the automobile market in America as a result. Have you driving through Detroit lately? Of course, we notice that Japan doesn't allow foreign automakers to swallow up huge portions of the auto market in Japan, because they impose a tariff...
BeadStallcup 1 year ago
rockisphone: This aint BS this is economics. You clearly have no understanding of the advantages of international trade. As a result, I would recommend you watch the video on comparative advantage by Mr Holden to get a better view of an economic basic.
gogogogogadgetflow 1 year ago
thank you.
scruch 1 year ago
This is all Bull. Free Trade Destroyed all manufacturing in the United States which was the back bone of our country. Free Trade put millions out of jobs. Americans cannot compete with Slave Labor. We need tariffs to bring back manufacturing. How could anyone in their Right Mind say Tariffs will hurt us? The U.S. now depends on consumers which are now going broke. Need to stop paying farmers not to grow and impose tarriffs on forien products. If you are not an American I am sure you won't agree
rocksiphone 1 year ago 2
amazing presentation!
mehanv 2 years ago
hi, i was wondering if there is a written version of this video so i can reference it for my international business essay? please, please get back to me as this is a really good presentation on protectionism.
glammapaki 2 years ago
Cheers for the awesome vid !
jackthehawk 2 years ago 2
You are ridiculously good. They should hire you at our school. The teachers here hand out books and booklets and send us off to the library to study to fight on our own :D Survival of the fittest, Pretty much. Keep up the great work. You are really encouraging and calm.
Luca220392 2 years ago 2
You are a truly amazing teacher, thank you so much :'( I finally understand.
flyingbeagles 2 years ago 2
Does it matter if the trade is between free market societies?
063067 2 years ago
very helpful, thanks a lot!!!!
MikeDevine69 2 years ago
I LOVE YOU MAN!
Krazyarab69 2 years ago 31
ur video is amazing!!!!!thank you so much
you were an enormous help for me!!!!!!!!!!!!!!!!!!!!!!!!!!!
you deserve a lot more fame as a youtuber!!
you're an economist, work on promoting urself:because the world needs erudition at this time of difficulty!
keep on shining!
johnnycyrus 2 years ago
explaining*
Marliebana 2 years ago
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Marliebana 2 years ago
Thank you very very much that was very helpful for my exam studies !
bu7iji 2 years ago
You don't talk about WHY the world can supply goods at a cheaper price thereby missing the boat completely. Let's look at why, shall we? Slave labor, child labor, prison labor, no enivronmental laws, no healthcare costs, no labor laws, no safety standards in the work place, etc, etc, etc. I love you economists. You do all your thinking in a vacuum. "Just assume their is an equal playing field of peasants everywhere, now let's talk supply and demand curves." A thing of beauty...in a VACUUM!
bucklerfoxton 2 years ago 2
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mediblue9 2 years ago
@bucklerfoxton - That's like saying: "What's the point of finding the area of a square? It's never that simple!". Well of course it's not, but all theory requires a foundation. Complex ideas and understandings don't just crop up out of the blue. All economists realize that they cannot see the world in theoretical diagrams, and indeed they don't. By using the "wake up America!" arguement, you simply come off as arrogant, as though you have a solution to inequality. Don't be so redundant.
Ambar88 1 year ago
Reaganomics and "free trade" did not work. You are witnessing the result of those failed policies over 30 years. Worst economy since the Republicunt Great Depression! We need tariffs and FAIR TRADE!
bucklerfoxton 2 years ago
Here's another piece of garbage put out there to brainwash the American middle class: tax cuts create jobs. BS. Tax cuts allow rich people to be richer. The big brainwash is that if you tell the working class that they will have more jobs if you cut rich people's taxes, maybe they will buy it and rich people can become even richer.
bucklerfoxton 2 years ago
Tariffs are one of the few things that would save this country from the economic collapse that you dumbass economics professors have gotten us into. Construct tariffs against the crap imported from China that ends up on MalWart shelves and see how fast Americans would jump at the chance to compete on an even playing field. We could buy American again and become a self-sufficient country instead of being owned by China.
bucklerfoxton 2 years ago
Great vid, very helpful. Thanks.
wiscsnowlover 2 years ago
thanks so much! this is now so much easier to understand!
princesslauren1992 2 years ago
mocks tomorrow. i hope u saved my life!:D thx
momo77h 2 years ago