Imports and effects of tariffs (international economics)

[Yotumumagic]

This is all part and parcel of the globalist agenda, training and indoctrination program: Disenfranchisement through Monopolistic Networks and Coalitions (DiMoNaC). Ask any Aregentinian,Greek, Icelander,Italian,Potugeese, Spaniard, etc.

[economicsfun]

@Yotumumagic Dude why so harsh! Just trying to help students pass international economics... Peace to the proletariat, take a breath, chill, bro.

[Yotumumagic]

Rubbish!! How about the economic reality of domestic job loss, and productivity; due to the flooding of the markets with substantially lower priced goods from foreign producers with dissimilar wages, benefits,and COST OF LIVING DEMANDS?

[jasonsandiego1]

Awesome vid! Thanks!

[xavianus]

Great explanation! Finally understood the tariffs and supply/demand on international trade. Thanks for sharing!

[wannabe771]

You make it so understandable. Thank you and great job!!!!

[Will1SAG]

I like this a lot, very helpful and great last minute revision.. BUT please can you use a less irritating accent?

[economicsfun]

@Will1SAG Blimey, mate! Ha ha, dang my midwest american accent is the only one I got.... Someday I will have all the voice overs done by people with sweet English accents. I am guessing you are English (or somewhere on the British Isles) because you use the term "revision." Cheerio!

[yodellikeyoumeanit09]

@economicsfun I like your accent!

[yodellikeyoumeanit09]

@economicsfun And your videos

[trank31337]

@economicsfun i like the sound of your voice! im from california

[Will1SAG]

@economicsfun haha yes you are right I'm English. Sorry I didn't mean to sound rude about the accent. But great videos! Keep them going! I used this the night before an eco test in college on international trade barriers and i got a 6 out of 7! So thanks a lot!

[MegaAstrodude]

So why did the US grow and prosper so much with tariffs and then decline markedly to hostile countries when it dropped the tariffs?

This lost consumer surplus is a good thing because it encourages investment in long-term growth industries and not garbage that will never yield dividends in our own country. Is it really bad for the economy if people don't spend all of their money on entertainment gadgets that only benefit another country?

[economicsfun]

@MegaAstrodude It ultimately comes down to who knows best governments and bureaucrats or industry and those who run it. if you believe bureaucrats know best, then you need to explain, why and how.

And as a side note this is not my theory. Dang I wish it was because I would be famous!

[MegaAstrodude]

@economicsfun,

Long term industry always call for tariffs on China to correct for its state interference in its economy and WTO bureaucrats always insist on forcing low tariffs and actually forcing domestic industry to pay higher taxes than foreign industry! What industry are you talking about? 

All of the exporters that Milton Friedman and Paul Krugman said would grow our economy have shrunk or collapsed. Boeing imports 75% of their airplane parts and Caterpillar doesn't export much now.

[economicsfun]

@MegaAstrodude We are much better off when China subsides exports to us. That means the Chinese helping our cost of living fall.

[MegaAstrodude]

@economicsfun,

Who's this 'we'? Net consumers are better off, but net producers are worse off. I think it's better to produce than to consume in the long run because eventually, net consumers always run out of money.

[economicsfun]

@economicsfun did you actually watch the video? Start watching at about 6:00. When international prices are less than domestic prices producers lose and consumers gain. With tariffs to protect producers there is a deadweight loss to the home country.

Producers need to learn to evolve or perish. No future in holding on to the past. It is fantastic that China subsides our lifestyle. I love my Apple products! I would not be able to afford such wonderful things otherwise.

[MegaAstrodude]

@economicsfun,

It's Adam Smith's theory and he said it should never be applied to international trade with radically different internal systems.

Smith writes:

By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end...

[economicsfun]

@MegaAstrodude Let's try again because you espoused some theories without answering the question. The question, "Who knows best governments and bureaucrats or industry and those who run it." It is a simple question, so give it a go and try to answer it.

[MegaAstrodude]

@economicsfun,

"Who knows best governments and bureaucrats or industry and those who run it."

Industry knows best. The American manufacturing industry and potential American manufacturing industry know what's best for America.

[economicsfun]

@MegaAstrodude All righty then.... industry or the market place knows best. Governments and bureaucrats set the tariffs and quota's.

Since you write so much about manufacturing soon I will post a video asking the question... which has more economic value. The iPhone or what is on it. Is it best to manufacture the iPhone or develop the software, the music, the videos, that go on the iPhone? Stay tuned.

[MegaAstrodude]

@economicsfun,

Quotas are bad, but tariffs are very different from quotas.

And industry frequently has called for a tariff especially as an alternative to an income tax.

[MegaAstrodude]

@economicsfun,

It's better to manufacture because software and "intellectual property" are easily copied and redistributed. Patent and copyright laws in one country defend this, but they don't apply in a place like China.

[economicsfun]

@MegaAstrodude apps generate over $3 billion annually and many of these are entrepreneurs/start ups. Keep in mind this market has just started. Google generates over $30 billion in revenue.

You can hold onto the past and hope the government passes laws to keep all those manufacturing jobs or you can move into the 21st century. I am sure if you would have been alive in 1911 you would of wanted to hold onto all those agricultural jobs as well.

[MegaAstrodude]

@economicsfun,

" I am sure if you would have been alive in 1911 you would of wanted to hold onto all those agricultural jobs as well."

Good point, but there are key differences. Jobs related to agriculture didn't disappear as a sector, they just changed from subsistence farming to Caterpillar factories and those jobs became much higher paying than subsistence farming. Software jobs aren't filling the void left by manufacturing's departure. Also, the US became the world's breadbasket after 1911.

[economicsfun]

@MegaAstrodude“The US became Worlds Breadbasket.” really? The value of crop and animal production in EU is about the same as US.

[MegaAstrodude]

@economicsfun,

"“The US became Worlds Breadbasket.” really? The value of crop and animal production in EU is about the same as US."

Yes, it did. The US became the world's most productive economy of all time by having tariffs instead of taxes on manufacturers. When it dropped the tariffs, it lost everything. All of these so called "free traders" are not Adam Smith free traders. They're really advocating taxing domestic business instead of foreign business to hurt domestic industry.

[economicsfun]

@MegaAstrodude If you are nothing you are persistent -- misguided but persistent. Economics is not a study of how you want things to be it is a study of how things are. Countries are best off with less government control (see east and west Germany or North and South Korea). It comes down to who knows best governments or people  Countries would be best off with open borders (see the new EU).

[MegaAstrodude]

@economicsfun,

"Countries would be best off with open borders"

Open-borders are a form of central planning. If you have open borders, you allow another country to invade you and take your property. When we have open borders with Mexico, cartels and thugs cross the border and kill lots of innocent people and are trying to steal property, causing net loss.

Ditto for free trade. One's economy becomes controlled by a despotism resulting in central-planning from the despot, causing net loss.

[numberonesurvivor75]

@MegaAstrodude,

You're right on open borders, but partially wrong on trade. The US hasn't had really high tariffs since the 1950s and the economy grew since then. The only difference was that we didn't start heavy trading with China until 1979, which is when things started to decline for most people.

We should have high tariffs only on Communist countries like China and Vietnam.

[economicsfun]

@numberonesurvivor75 Perhaps you suffer from short term thinking? Don't trade with China because we want to protect manufacturing jobs instead of moving on to clean knowledge jobs. I would much rather have an economy that makes the things that go on an iPhone rather than the iPhone itself.

[numberonesurvivor75]

@economicsfun,

It's not just about protecting jobs, it's about creating new ones as well. Robots, nanotechnology, pollution control, etc all follow manufacturing to China.

"Don't trade with China because we want to protect manufacturing jobs instead of moving on to clean knowledge jobs."

It takes both to build a large economy. It's not only the jobs, but the actual manufacturing that needs to be here for economic and military security.

[Drregaleagle]

@numberonesurvivor75,

Let's get some clean knowledge jobs as the economy hasn't grown per capita in 20 years and our country is being taken over by dictators with our military in the crapper.

@economicsisfun,

With tariffs, average growth from 1870-1892 was about 6% in the US. With China having 30% tariffs on imports usually, the average growth in 10%. The evidence is there. Hamilton was right and the dismal scientists were wrong.

[economicsfun]

@MegaAstrodude

Software development jobs only represent a small fraction of knowledge or information workers. Even so, the top 10 software related firms employee well over a million individuals.

[picachonero]

thanks



[larson256]

It is really good made, Thanks.

[Cytoskeleton1]

Thank u very much

[samzion77]

You have done what my teacher wasn't able to do for a long long time, thank you for help me understand it

[rosycheeksable]

so surprised, I'm studying this problem, and it's really helpful, after watching, I feel nothing complicated with tax anymore. thank a lot! :)

[booja101]

BRILLANT

[economicsfun]

@booja101 thanks for your feedback. Much appreciated.

[nowaydudewtf]

perfect!

[andyleenk]

awesome!