We learned this is business class in high school, but the brain rot has just sunk too deep. People don't ask questions, they just accept short phrases like "build American" and "make America great" and don't think beyond that.
People take everything on the internet as fact. We need our education system to teach our children how to discern fact from fiction and use science to research. Many baby boomers cannot understand this.
Prob with Econ 101 is it’s just neoliberal mythology. Plus economics is not a hard science and unless your exposed to the structure of the field and how it fits together then your not truly teaching it. At the core of economic theories you are deciding on arbitrary values. This is why they are not hard sciences.
@supertec2023 I mean, even that's hard for Maga. They worship an adulterous, thieving, money hoarding, judgemental, vengeful charlatan who's platform is 50% hate your neighbor and 50% false witness. Oh, and let's not forget the time he spread his arms to the heavens and proclaimed himself the chosen one.
All higher educated information and knowledge seems to be difficult for MAGA. Truth seems to be a diuficult concept as well. I grew up with family members in a sort of religious cult: Jehovah witnesses. Honestly I see some similarities in how they avoid truth at times and their sometimes odd perspective of the world. If the kids left the religion the parents were not allowed to speak to their own kids or other adults if they left… it is messed up.
Brazil has high tariffs on electronics - a ps5 cost as much as $900 on launch. 😮😮 The idea of tariffs was to get Brazil to develop their own electronics industries. But somehow a Brazillian Sony or AMD never emerged.
Tariffs are a great tax on the poor. Between inflation and tariffs this should be soul crushing on middle America. Don't worry though profits will be up 😂
Me THANKS YOU. Let's HOPE we get Harris/Walz 2024. Those swing states I'm concerned about. Do they consist of MAGA? If so then we've won't have a country to be PROUD of being part of.
@@richnoggin7524 okay I'm willing to feed you... For the sake of argument let's say that the last 4 years were misery. How exactly were the previous 4 years any better? Don't be vague tell me precisely what was better, and since you said misery it needs to be more than just one or two things.
Herbert Hoover tried this exact same thing to prevent the recession of Calvin Coolidge from getting worse. He thought that he would be promoting American products and therefore raising the economy. But the reason that the great depression is attributed to Hoover and not Coolidge is that, though it was Coolidge economy that created the recession , it was Hoovers tariffs that created the Great Depression. The cost-of-living went up dramatically, people could buy less and more jobs were lost because businesses went out of business they couldn’t sell. Making more people poor without jobs. If you’re gonna come up with an idea from the past, at least use one that was successful. There are many. High taxes on the Rich was very successful. Strong country wide unions was successful. Corporate regulations to prevent monopolies and bad ethics involving public money was very very successful. Together they created the American Dream. Let’s make America actually great again by bringing back those things. We have done everything we’re talking about, but we can see what worked, and is working around the world, just not doing any of it because the rich have taken control and are greedy to the point of a mental illness among the class.
The Venn diagram of addicts and former addicts & Trump supporters is terrifyingly close to a circle. Almost all the people I know who still support Trump have a history of substance abuse.
Trump also doesn't understand that other countries can place tariffs on American goods and services. That's going to wipe out American companies who depend on exports. Boeing (171,000 employees) would lose up to 70% of its revenue.
If your country has a strong sector, eg manufacturing, that you want to protect, Tariffs make sense to keep companies competing with "unfair" advantages from destroying that sector. Many countries out compete western nations on manufacturing by having extremely exploitative conditions for their workers. Horrible pay, hours, safety, etc. If this was 50+ years ago, Tariffs could have protected jobs, and ensured that people in some other country also weren't getting exploited for that job, since worker protections are much better in western countries. But it's too late now since those jobs have mostly been off-shored already. Free trade is good for business but terrible for the average worker since even though it drives down costs, it also drives down wages due to competition with exploitative markets. If all countries had a similar level of worker's rights, then it'd be a net win for all countries involved, since it will still reduce the cost of goods without driving down wages. Adding tariffs right now might eventually maybe possibly bring back manufacturing jobs. But the time until that happens will be extremely painful for most people. Massive shortages on goods, hyper-inflated costs, loss of jobs, etc. And that also presumes that the owning class doesn't just decide that robots are cheaper than western workers who have salary and safety demands, unlike exploited workers in other countries. The damage free trade has done to the western work force is already done and will be hard to reverse without even more damage to workers. Bringing back manufacturing jobs ultimately is something that requires a lot of finesse and gradual progress, and might not even be fully possible with modern technology incentivizing automation. TL;DR: Free Trade vs Tariffs is actually a very nuanced and difficult problem to solve. Free trade requires the trading partners to have similar worker value to be beneficial to the working class. Tariffs require an already strong sector and enough internal demand to not require exports to the tariffed countries to be beneficial to the working class.
@Randomorph A very well thought out and articulate response. I often wondered about if developed countries came together to put a tariff on finished goods from areas with exploitative conditions on their workers. A kind of driving force to bring jobs to areas with higher worker protection, level the playing field of labor costs and add an incentive to those exploitative areas to modernize. We would need to invest pretty heavily in manufacturing capacity first, but I still think it's an interesting idea.
@@Lobod287 Developed countries won't do that, since the exploitation in other countries is the point. When workers start getting demanding of fair treatment, companies either up and move to a more exploitable market, or, as is the case with USA, they destabilize countries to make for an exploitable market. That's why many countries that try to move towards socialism suddenly have a USA government backed coup, or have heavy embargoes and tariffs on them (eg Cuba). I do agree though, that would be a way for western nations to help improve standards in other countries indirectly. The problem is western nations are the ones benefiting from those poor standards in those countries in the first place.
@Randomorph Agreed. There would need to be an aweful lot of people willing to bite the bullet for that, even if it did open domestic industry in the long term. Just a thought experiment I thought was interesting. Led to learning a lot more in depth about intermediary supply chains and considerations of whether those countries would just move to raw goods or if that would even be viable.
I agree with your points, because they're facts. The point you made about how tariffs will work mentions "other nations valuing workers and wages." This is the tool that poorer countries use to remain competitive. If those countries start paying workers as much as US and Canada make, they'll lose their advantage. If we use China as an example, we can see that they ACTUALLY INNOVATED over the past 20+ years (unlike Apple or Samsung). They knew they couldn't be Japan in the 1960-70s or South Korea in the 1990s. They didn't try making competitive ICE cars. Instead, they knew that they were leading the game in battery tech. They applied that to automotive manufacturing, perfected vertical integration and innovation, and are now leading the world in EV tech and manufacturing. They can't be caught or defeated. We should find what we're good at and stick to it. North America keeps fighting the transition to EVs. I say we throw in the towel and stick with ICE vehicles, but focus on making them smaller, lighter and more efficient. Let the engineers figure that out.
@@BoondockSaintRyan It's not that countries use their exploitative worker conditions as an advantage, it's that those conditions exist that these multinational companies go there for cheap labour. Keep in mind these huge companies often make massive profits. China did do a crazy amount of innovation in a number of sectors, in particular green energy generation and storage, but that doesn't mean they can't be caught. The US in particular is just too focused on innovating only one thing: how to make the most amount of profits for the owning class. The greed is the problem, not other countries doing innovation. Saying we should just throw in the towel and commit to ICE vehicles when we're seeing report after report saying "Oh wait, we were actually too OPTIMISTIC about climate change" is so incredibly short sighted I don't even know what to say. EV technology exists and could be significantly cheaper than it is, but the oil industry and North American automotive manufacturers are lobbying extremely hard against it. Honestly the real solution isn't even EVs, it's getting other means of transportation such as trains, buses, trams, and bikes to be more commonplace and actually usable for the average person. China is focusing a lot on their trains and metros. EVs aren't here to save the world, they're here to save the car industry.
Pretend the Government wanted to pass 20% taxes on all goods that come from another State. My state can't grow certain fruits do to the location, soil, climate, etc. It's just not feasible.
I respect his business mind and economic knowledge. Do he have a show or blog because I would love to hear more about his views and knowledge of running business and global businesses structures.. ❤😊
There was a whole campaign during the 80s and early 90s to buy American, and the whole nade in america tag.....and the thing I remember growing up was that the products were of low qualify
If manufacturing jobs will come back with Tariffs, let's Apple start by bringing the manufacturing of their own products. They will restrict themselves to American market. The rest of us will buy Chinese and Korean makes because they will be more competitive.
But you wouldn't because the tariffs would make them more expensive... That's the whole point of protectionist policies, imports of certain things become too expensive which forces companies to manufacture in home markets.
Not to mention u will have to find an American willing to make the same cheap product locally for a few cents just like others might around the world.. a livable wage will not make those products cheaper if wade some of these goods locally.
As someone who barely knows the bare minimum about economics, this type of content is very useful and easy to grasp. I'm European, but I imagine that those Americans who do end up seeing this will understand. Either way, thanks for your contribution 💙
Yes, yes, yes!! Thank you for making this video. When trying to explain this concept to people, as we discuss the current and future status of the automotive industry, I'm mocked by others and labeled "a Communist," for pointing out what should be common sense. It's infuriating. Seeing someone who appears to be educated, level-headed and informed, I find it comforting. Our western society, and more importantly, our governments, needs to understand this and make the necessary changes. Let's do our homework, look to the past for proof of what works and doesn't work, and start fixing things for our future.
1. not everything gets tariffs... not especially raw materials. 2. to the point that labor is "just cheaper" elsewhere, what do you think the tariffs are supposed to offset? Yes, it would be more expensive to manufacture some items in the states, but tariffs would offset those costs, or make them comparable. 3. Cheap clothing and planned obsolescence is the problem, not the cost of what should last. Do you think it's easier or more difficult to hold other countries manufacturing practices accountable? 4. Dude straight up endorsed the use of low income labor to make shirts because "americans organizing with unions" is TOO expensive. Capitalism is the reason everything races to the bottom, not cost.
We do have to stop exporting jobs and bring alot of them back but tariffs is not the way todo it. We need more unionizing, increased minimum wage, socialized housing, and inflation caps on prices.
Now I would happily buy an American made T shirt, where the farm workers are paid a fair wage, the fabric is woven and the t-shirt made in union shops. I'm also aware that this comes at a premium. Now when Trump sqays tariffs, I get the feeling the part he and his backers don't tell you is that they'll bring back manufacturing in US sweatshops; no minimum wage, no rights.
Actually, we do have some capacity to make shirts here in usa. Was featured on a channel here about supporting all is made products. We actually ship the raw materials off to other countries across the world to make our clothes, then ship it back. That's the travesty, seeing how it's still cheaper to do that.
America is not the whole world. We are the wealthiest, most powerful country (potentially) and we preach UNITY AND DEMOCRACY SO THAT THE WORLD CAN WORK TOGETHER TO BENEFIT EVERYONE.
The Chicken Tax (no, I'm not explaining, google it) protected profits for GM/Ford/Dodge, but didn't lower the cost to consumers or save jobs (until almost 50 years later, when companies like Toyota make US-only trucks in the US). Also, a 25% tax on a $0.25 shirt that's sold in stores for $20 isn't going to hurt anyone or generate the revenue you think. If there was a 25% tariff on t-shirts, expect Gap to buy the shirt in Malaysia for $0.25, and show the import cost as $0.25, for a tariff of $0.0625. Then they pay post-tariff costs back to transport, and other costs. The cost of the shirt to them in the US is $2, but they will defraud the US government out of the $0.4375 per shirt, to keep their costs down, but expect them to jack up the prices in the store 50% or more and blame the tax. Tariffs can't work in the manner they always have. They either need to be a national sales tax, or abolished. The other way to work tariffs is to have a UN department that measures every country on a sliding scale for the "cost" of working locally. So places with no worker rights, no worker safety, and no environmental controls will have a high tariff rate, and places with the best conditions will have the lowest tariff rate. That will be fair, and can be applied globally, to increase local production everywhere, not drive bad behavior in companies to dodge taxes.
How stupid someone must be to think “oh, Trump will bring back jobs to America and everything will be better” WRONG! Since when have you seen a company care about you or the US in general? They will pass on the tariff charges onto us, raising the costs and prices, AND not raising the minimum wage. Is that what yall freaking want? We can barely live now. Imagine if Trump won and implemented tariffs. Smdh.
I agree. I learned both of these in high school and took additional classes in college. These are essential classes every American should learn or refresh their knowledge on before making decisions to vote. Remember knowledge is power. Vote blue down the ballot! Go Harris/Walz!!!
This kind of thing is demonstrated really well with resource management games. You never want a worker performing a task when there's a different task that they can do better than anyone else. By assigning the right jobs to the right workers, you maximize the benefits to your system. In this sense, it's better to let multiple workers individually do their own thing and share resources than to isolate each worker and have them try to do everything for themselves individually.
Then why were they added to the IRA and BIC and then lauded as major economic drivers to incentivize manufacturing production of infrastructure in the US?
The basic function of a tariff is to raise prices so that domestic firms can compete. Reasonable non-economic arguments can be made for doing so on certain strategic industries (microchip manufacturing, for instance) but you have to acknowledge that the economic downside is unavoidable even then. I'm not thrilled about Biden's increases, but they're nothing compared to Trump's proposed 10-60% on literally everything. The effects would be roughly seven times as severe as the current tariffs.
@@MusouInken Fair enough, but also assumes 100% success at the most conservative approach from Trump's economic agenda, which I think would be unlikely given that any such economic proposal would require congressional approval. While there are a lot of maga yes men in congress, they do not constitute a majority of the republican party nor would they have a majority of congress with democratic and more moderate oppositon.
@MattBuild4 Actually, no. Congress has largely delegated its control over tariffs to the president. For instance, Trump did not seek or need approval for his first round of tariffs, nor did Biden need congressional approval for his own expansions.
@@MusouInkenbasically congress didn't contest it. Since trump and by extension, all autocrats treat everything as an emergency, which is bs, they can do whatever they want.
@@sprockkets What can Congress reasonably do? They could repeal or amend the Trade Expansion Act ("as necessary for defense" is incredibly vague and has so far been taken advantage of), but it would have to be veto proof for obvious reasons, or they could try to appeal to SCOTUS, but Trump's personally nominated a third of them.
The first time I ever heard of terrorists is back in the 1980s. I wanted a certain kind of Honda motorcycle in 1983 that motorcycle cost $3,300. So when Ronald Reagan was President Harley-Davidson was not doing very well can you put a tariff on imported motorcycles over 750 cc's. So that same motorcycle the following year cost $1,000 more with no difference. I wanted nothing to do with Harley-Davidson you can put a million percent tariff on all motorcycles I would still never buy one. So that tariff didn't help Harley-Davidson sell their motorcycles It just passed the person more cost in taxes that didn't improve this Harley-Davidson sales. Ever since then I learned it was a bunch of BS. It's funny how the guy who screams capitalism the most AKA Donald Trump wants to use socialist means to control American society.
The real kicker is that they are trying their best to remove people from the equation. The playing field levels out if you're only paying maintenance on a bunch of robots
I’m a machinist working in manufacturing for over 30 years. 3 things work against tariffs. 1) the high cost in time and money to build a modern factory 2) the lack of skilled workers to build and operate those factories 3) the lack of raw materials and the lack of tolerance for the incredible amount of environmental contamination and human health impacts that producing them requires. A cheap t-shirt is expensive in human misery and environmental destruction, we had that in the early days of industrialization in America. Now they have it in China. I don’t think Americans are willing to go back to child labor and rivers that catch on fire.
Also! We don't need to incentivize American manufacturing because America is manufacturing like crazy right now. Our economy is actually really really good
I actually saw someone argue that the US *needs* those low level jobs that other countries has a competitive advantage in. And my thought was "geez. Maybe if the US' education system wasn't a mess, it wouldn't."
Tariffs bring back manufacturing just as much as price controls reduce prescription medicine costs. Both candidates have holes in their economic policy
I tried to convey this point to someone s could of weeks ago. They just didn't understand. Just to build the factories to make whatever product a company wants to sell is going to be cost prohibitive. So much so that it's probably just cheaper to pay the tariffs rather than invest in those buildings.
All a tariff is a additional way for the government to collect more taxes from the tariffs. Tariffs and embargos destroyed the country under Hoover and caused the great depression.
Generally agree. US and other developed countries should concentrate on technologies where labour rates can be leveraged higher. Ironically, AI and robotics will change this narrative over time as this will reduce labour costs to lower than any human on the planet
This video is over simplifying. I was an engineer in auto industry. If you strategically tax lower on different raw material and OEM and tax higher on finished product you won’t have to increase product price not much but bring a lot of jobs back. In the ideal world no country should have tariffs. But at least we need to be able to match other countries tariffs on the same products. I don’t think competitive advantage is relevant when the playing field isn’t the same.
Global free trade was subsidized post WWII by the US navy. The US helped create Chinese manufacturing to capitalize on cheaper labor and expense costs for US companies at the expense of American manufacturing jobs. Executives consolidated so much wealth by offshoring regular things Americans used to make like shoes and gloves.... The chinese government allowed special economic zones to expand free trade strategically in order to establish fast economic growth for china. Nothing is set in stone. Look how fast Guangzhou and Shenzhen changed because of the steep rise in chinese consumer product manufacturing. Wild.
I just want to point out, nearly all of the things said that the US is good at is being attempted to be made by other countries, that causes a kinda panic the idea that the specialties may or may not be overtaken, and hence the issue I find is that it's possible that part of the tariffs may be imposed as a rose tinted glasses and overly rushed answer of someone kinda panicked about stuff hence the ideas are label as possible and viable even if they are not really.
This is the classical economist's answer that ensures market efficiency. What the undergrad econ textbooks never mention are the people who feel left behind for countries to achieve these efficiencies and the impact their votes have on electing leaders who decide whether or not to continue going forward with it.
I refuse to believe that a country the size of the United States, with its vast resources, doesn't have the raw materials to produce a T-Shirt without importation. The problem is Americans are used to cheap consumer goods, due to free trade. $ 20 is perfectly reasonable price for a T- shirt in many parts of the world. Those who propose tariffs need to accompany their proposals with a reality check, that tariffs mean higher prices.
Tariffs are (by some strange coincidence) are a Soviet idea, for isolating a nations economy from the global economy.. Does work in the short term, long term a reset occurs resulting in catastrophic failure. The market does what the market does.
Republicans should realize that having a universal healthcare, free education, and a good public transportation can actually helped your local businesses much better. Just take a look at scandinivian countries, despite having huge taxes, people can still comfortably spend on expensive local products because they don't have student loan debt to pay, medical bills to worry and a monthly expenses on car ownership. Plus, a good urban design that consists of more walkable areas, walking distance stores and bicycle infrastructure are proven to boost local businesses that are more likely to source their goods on local manufacturer.
This description is 100% correct and a very good and simple explanation of the problem with tariffs but still too complicated for the typical MAGA voter. Need shorter more focused versions of this focused on specific segments- farmers, manufacturers, etc.
"Fair trade" is also what made a lot of jobs disappear in America. We can't compete with slave labor from China or any number of other places. No American worker is competing with chinese folks who rent a room at the factory they work at where they made 20 cents a day.
The whole point of the tariffs would be to convince gullible Americans to accept low wages, and the loss of unions, the minimum wage, health-care, saftey regulations, and democracy.
The more videos i see like this and the more i find out about China and what they are really doing makes me sad for our western countries. We are falling behind so much that at this point im literally considering moving to China or other easter asia country. The future doesn't look bright at all on this side and neither the left or right get it or just dont care.
I voted for trump in 2016. One of the dumbest decisions i ever made. Who knew a 6 time bankrupt bussiness man cant run a burger king let alone a country.
good example of why critical thinking is important these days. MAGA - whether you agree with the points or not about tariffs, at least be able to communicate an argument against these statements ... as just stating ' tariffs are good' shows you're kinda mindless and just parroting what your orange leader is telling you to say.
you mean 20% to 500% to "whatever percent" tariffs on all imported goods won't work???? please, explain in an 8 minute video why!!! FFS stoopppppp. i can explain in one sentence: 95% of the world's pcb's are manufactured in china & hong kong, the price of anything with a circuit board will explode
We learned this is business class in high school, but the brain rot has just sunk too deep. People don't ask questions, they just accept short phrases like "build American" and "make America great" and don't think beyond that.
People take everything on the internet as fact. We need our education system to teach our children how to discern fact from fiction and use science to research. Many baby boomers cannot understand this.
All of u in the comments saying no
U dont even go to vote
Go and vote if u dont think so
Kamala for president 💙
They never ever thought beyond that.
America needs to bring back economics and civics as mandatory subjects in high school!!!
Facts
They were mandatory in my high school, but I was in a rural school where we still had home ec and shop classes 😆
You guys don't have that?
Prob with Econ 101 is it’s just neoliberal mythology. Plus economics is not a hard science and unless your exposed to the structure of the field and how it fits together then your not truly teaching it. At the core of economic theories you are deciding on arbitrary values. This is why they are not hard sciences.
@@tylermacdonald8924now you see what’s wrong with our education system. Defund the dept of education, they said…
He's saying all the concepts I knew in highschool yet these Republicans just can't grasp them
Because they’re too heavily indoctrinated by their non-existent being to fathom any sort of reality
Exactly
They are anti-education so I wouldn't expect them to know
Republicans don’t believe in schools, they want uneducated people who will continue to vote against their interest
maga types do not think for themselves. they only say what their leaders spoon feed them to say.
Math is hard for maga.
Anything not in the Bible's hard for maga
thinking for themselves is hard for maga. they only say what their orange leader tells them to say.
@@supertec2023newsflash: most of what maga believes is in the Bible isn't in the Bible
@supertec2023 I mean, even that's hard for Maga. They worship an adulterous, thieving, money hoarding, judgemental, vengeful charlatan who's platform is 50% hate your neighbor and 50% false witness. Oh, and let's not forget the time he spread his arms to the heavens and proclaimed himself the chosen one.
All higher educated information and knowledge seems to be difficult for MAGA. Truth seems to be a diuficult concept as well. I grew up with family members in a sort of religious cult: Jehovah witnesses. Honestly I see some similarities in how they avoid truth at times and their sometimes odd perspective of the world. If the kids left the religion the parents were not allowed to speak to their own kids or other adults if they left… it is messed up.
Brazil has high tariffs on electronics - a ps5 cost as much as $900 on launch. 😮😮
The idea of tariffs was to get Brazil to develop their own electronics industries.
But somehow a Brazillian Sony or AMD never emerged.
Well you are still making licensed Sega consoles.
Yep. People have huge nostalgia for them here, but we also play PS5 @shawnm8232
The time to use tariffs to save American manufacturing jobs was 1980, when Ronald Reagan was shipping them to China.
Tariffs are a great tax on the poor. Between inflation and tariffs this should be soul crushing on middle America. Don't worry though profits will be up 😂
I’m glad you see it too!
Yup gotta pay for all them tax cuts for elon musk and buddys somehow.
Registered Republican household here, We got you. Voted early! : ) 1st time blue💙 too! Yeah!💙💙💙 🙏🏼🇺🇲🇺🇦💙💛
THANK you🤙🏼
Me THANKS YOU. Let's HOPE we get Harris/Walz 2024. Those swing states I'm concerned about. Do they consist of MAGA? If so then we've won't have a country to be PROUD of being part of.
Four more years of misery🤦
@@richnoggin7524 okay I'm willing to feed you...
For the sake of argument let's say that the last 4 years were misery.
How exactly were the previous 4 years any better?
Don't be vague tell me precisely what was better, and since you said misery it needs to be more than just one or two things.
fist bump to you for voting blue! lets take back America!
Herbert Hoover tried this exact same thing to prevent the recession of Calvin Coolidge from getting worse. He thought that he would be promoting American products and therefore raising the economy. But the reason that the great depression is attributed to Hoover and not Coolidge is that, though it was Coolidge economy that created the recession , it was Hoovers tariffs that created the Great Depression. The cost-of-living went up dramatically, people could buy less and more jobs were lost because businesses went out of business they couldn’t sell. Making more people poor without jobs. If you’re gonna come up with an idea from the past, at least use one that was successful. There are many. High taxes on the Rich was very successful. Strong country wide unions was successful. Corporate regulations to prevent monopolies and bad ethics involving public money was very very successful. Together they created the American Dream. Let’s make America actually great again by bringing back those things. We have done everything we’re talking about, but we can see what worked, and is working around the world, just not doing any of it because the rich have taken control and are greedy to the point of a mental illness among the class.
That’s economy 101 that Trump doesn’t understand
The Venn diagram of addicts and former addicts & Trump supporters is terrifyingly close to a circle. Almost all the people I know who still support Trump have a history of substance abuse.
Trump also doesn't understand that other countries can place tariffs on American goods and services.
That's going to wipe out American companies who depend on exports. Boeing (171,000 employees) would lose up to 70% of its revenue.
That’s because he’s never been an actual business man. Just a grifter. Just like Musk has never been an actual engineer.
If your country has a strong sector, eg manufacturing, that you want to protect, Tariffs make sense to keep companies competing with "unfair" advantages from destroying that sector. Many countries out compete western nations on manufacturing by having extremely exploitative conditions for their workers. Horrible pay, hours, safety, etc.
If this was 50+ years ago, Tariffs could have protected jobs, and ensured that people in some other country also weren't getting exploited for that job, since worker protections are much better in western countries. But it's too late now since those jobs have mostly been off-shored already. Free trade is good for business but terrible for the average worker since even though it drives down costs, it also drives down wages due to competition with exploitative markets. If all countries had a similar level of worker's rights, then it'd be a net win for all countries involved, since it will still reduce the cost of goods without driving down wages.
Adding tariffs right now might eventually maybe possibly bring back manufacturing jobs. But the time until that happens will be extremely painful for most people. Massive shortages on goods, hyper-inflated costs, loss of jobs, etc. And that also presumes that the owning class doesn't just decide that robots are cheaper than western workers who have salary and safety demands, unlike exploited workers in other countries. The damage free trade has done to the western work force is already done and will be hard to reverse without even more damage to workers.
Bringing back manufacturing jobs ultimately is something that requires a lot of finesse and gradual progress, and might not even be fully possible with modern technology incentivizing automation.
TL;DR: Free Trade vs Tariffs is actually a very nuanced and difficult problem to solve. Free trade requires the trading partners to have similar worker value to be beneficial to the working class. Tariffs require an already strong sector and enough internal demand to not require exports to the tariffed countries to be beneficial to the working class.
@Randomorph A very well thought out and articulate response. I often wondered about if developed countries came together to put a tariff on finished goods from areas with exploitative conditions on their workers. A kind of driving force to bring jobs to areas with higher worker protection, level the playing field of labor costs and add an incentive to those exploitative areas to modernize. We would need to invest pretty heavily in manufacturing capacity first, but I still think it's an interesting idea.
@@Lobod287 Developed countries won't do that, since the exploitation in other countries is the point. When workers start getting demanding of fair treatment, companies either up and move to a more exploitable market, or, as is the case with USA, they destabilize countries to make for an exploitable market. That's why many countries that try to move towards socialism suddenly have a USA government backed coup, or have heavy embargoes and tariffs on them (eg Cuba).
I do agree though, that would be a way for western nations to help improve standards in other countries indirectly. The problem is western nations are the ones benefiting from those poor standards in those countries in the first place.
@Randomorph Agreed. There would need to be an aweful lot of people willing to bite the bullet for that, even if it did open domestic industry in the long term. Just a thought experiment I thought was interesting. Led to learning a lot more in depth about intermediary supply chains and considerations of whether those countries would just move to raw goods or if that would even be viable.
I agree with your points, because they're facts. The point you made about how tariffs will work mentions "other nations valuing workers and wages." This is the tool that poorer countries use to remain competitive. If those countries start paying workers as much as US and Canada make, they'll lose their advantage.
If we use China as an example, we can see that they ACTUALLY INNOVATED over the past 20+ years (unlike Apple or Samsung). They knew they couldn't be Japan in the 1960-70s or South Korea in the 1990s. They didn't try making competitive ICE cars. Instead, they knew that they were leading the game in battery tech. They applied that to automotive manufacturing, perfected vertical integration and innovation, and are now leading the world in EV tech and manufacturing. They can't be caught or defeated.
We should find what we're good at and stick to it. North America keeps fighting the transition to EVs. I say we throw in the towel and stick with ICE vehicles, but focus on making them smaller, lighter and more efficient. Let the engineers figure that out.
@@BoondockSaintRyan It's not that countries use their exploitative worker conditions as an advantage, it's that those conditions exist that these multinational companies go there for cheap labour. Keep in mind these huge companies often make massive profits.
China did do a crazy amount of innovation in a number of sectors, in particular green energy generation and storage, but that doesn't mean they can't be caught. The US in particular is just too focused on innovating only one thing: how to make the most amount of profits for the owning class. The greed is the problem, not other countries doing innovation.
Saying we should just throw in the towel and commit to ICE vehicles when we're seeing report after report saying "Oh wait, we were actually too OPTIMISTIC about climate change" is so incredibly short sighted I don't even know what to say. EV technology exists and could be significantly cheaper than it is, but the oil industry and North American automotive manufacturers are lobbying extremely hard against it. Honestly the real solution isn't even EVs, it's getting other means of transportation such as trains, buses, trams, and bikes to be more commonplace and actually usable for the average person. China is focusing a lot on their trains and metros.
EVs aren't here to save the world, they're here to save the car industry.
Why are you not on CNN and MSNBC making this good sense every day. Please why?
To preach to the choir? He needs to be on right wing outlets
CNN is now Fox-news lite
Pretend the Government wanted to pass 20% taxes on all goods that come from another State. My state can't grow certain fruits do to the location, soil, climate, etc. It's just not feasible.
Thank You DEAN!!!
Who is that person? I can't find his full name. 🤔
Trumponomics linking taxcut and tariff is the most bizarre economic theory I ever encounter in my life.😮
You're assuming that Donald Trump knows ANYTHING about economics. His business record suggests otherwise.
And linking lower inflation with 60% tariffs on almost everything we buy except food.
Fantastic! This should be seen by every high school graduating class. Great examples for street folk.
Just outstanding 🎉🎉
The lack of polish and VFX on this video actually makes it even more believable and engaging (in addition to your dad's common sense, 😎)
I respect his business mind and economic knowledge. Do he have a show or blog because I would love to hear more about his views and knowledge of running business and global businesses structures.. ❤😊
I agree with you about trade. The problem is the fact that the government didn’t help communities whose jobs were impacted by the loss of industry.
Interestingly, the concept of "government helping people" is considered Communism by the States' right wing, and anathema.
There was a whole campaign during the 80s and early 90s to buy American, and the whole nade in america tag.....and the thing I remember growing up was that the products were of low qualify
If manufacturing jobs will come back with Tariffs, let's Apple start by bringing the manufacturing of their own products. They will restrict themselves to American market. The rest of us will buy Chinese and Korean makes because they will be more competitive.
Indeed
But you wouldn't because the tariffs would make them more expensive... That's the whole point of protectionist policies, imports of certain things become too expensive which forces companies to manufacture in home markets.
@northernnaysayer1240 Sure, but their not going to increase incomes to make those Jobs more lucrative to apply to.
Not to mention u will have to find an American willing to make the same cheap product locally for a few cents just like others might around the world.. a livable wage will not make those products cheaper if wade some of these goods locally.
This is such a simple concept....
Yep. That’s why so many companies left America in the first place. Cheaper labor.
As someone who barely knows the bare minimum about economics, this type of content is very useful and easy to grasp. I'm European, but I imagine that those Americans who do end up seeing this will understand. Either way, thanks for your contribution 💙
Trying to explain tariffs and economics to the average American citizen is liking trying to explain how gravity works to a snail.
Yes, yes, yes!! Thank you for making this video. When trying to explain this concept to people, as we discuss the current and future status of the automotive industry, I'm mocked by others and labeled "a Communist," for pointing out what should be common sense. It's infuriating. Seeing someone who appears to be educated, level-headed and informed, I find it comforting. Our western society, and more importantly, our governments, needs to understand this and make the necessary changes. Let's do our homework, look to the past for proof of what works and doesn't work, and start fixing things for our future.
1. not everything gets tariffs... not especially raw materials.
2. to the point that labor is "just cheaper" elsewhere, what do you think the tariffs are supposed to offset? Yes, it would be more expensive to manufacture some items in the states, but tariffs would offset those costs, or make them comparable.
3. Cheap clothing and planned obsolescence is the problem, not the cost of what should last. Do you think it's easier or more difficult to hold other countries manufacturing practices accountable?
4. Dude straight up endorsed the use of low income labor to make shirts because "americans organizing with unions" is TOO expensive.
Capitalism is the reason everything races to the bottom, not cost.
So what's your point? Ino. Is a tariff plan a good idea??
We do have to stop exporting jobs and bring alot of them back but tariffs is not the way todo it. We need more unionizing, increased minimum wage, socialized housing, and inflation caps on prices.
I love the way he explains this. Even a 5 year old can understand.
Now I would happily buy an American made T shirt, where the farm workers are paid a fair wage, the fabric is woven and the t-shirt made in union shops.
I'm also aware that this comes at a premium.
Now when Trump sqays tariffs, I get the feeling the part he and his backers don't tell you is that they'll bring back manufacturing in US sweatshops; no minimum wage, no rights.
Reps thinking the economy will get better purely through their force of will. Cmon people
We would first need a domestic source for the goods. Otherwise the tariff just kills industries.
It's Macro Economics 101.
Actually, we do have some capacity to make shirts here in usa. Was featured on a channel here about supporting all is made products.
We actually ship the raw materials off to other countries across the world to make our clothes, then ship it back. That's the travesty, seeing how it's still cheaper to do that.
America is not the whole world. We are the wealthiest, most powerful country (potentially) and we preach UNITY AND DEMOCRACY SO THAT THE WORLD CAN WORK TOGETHER TO BENEFIT EVERYONE.
The Chicken Tax (no, I'm not explaining, google it) protected profits for GM/Ford/Dodge, but didn't lower the cost to consumers or save jobs (until almost 50 years later, when companies like Toyota make US-only trucks in the US).
Also, a 25% tax on a $0.25 shirt that's sold in stores for $20 isn't going to hurt anyone or generate the revenue you think.
If there was a 25% tariff on t-shirts, expect Gap to buy the shirt in Malaysia for $0.25, and show the import cost as $0.25, for a tariff of $0.0625. Then they pay post-tariff costs back to transport, and other costs. The cost of the shirt to them in the US is $2, but they will defraud the US government out of the $0.4375 per shirt, to keep their costs down, but expect them to jack up the prices in the store 50% or more and blame the tax.
Tariffs can't work in the manner they always have. They either need to be a national sales tax, or abolished.
The other way to work tariffs is to have a UN department that measures every country on a sliding scale for the "cost" of working locally. So places with no worker rights, no worker safety, and no environmental controls will have a high tariff rate, and places with the best conditions will have the lowest tariff rate. That will be fair, and can be applied globally, to increase local production everywhere, not drive bad behavior in companies to dodge taxes.
I don’t know who this guy is but he’s good at explaining stuff.
TRUMP DOESN'T KNOW WHAT TARIFFS ARE OR HOW THEY WORK VOTE BLUE 💙💙💙 AND GET THE MORONS OUT OF POLITICS
How stupid someone must be to think “oh, Trump will bring back jobs to America and everything will be better” WRONG!
Since when have you seen a company care about you or the US in general?
They will pass on the tariff charges onto us, raising the costs and prices, AND not raising the minimum wage.
Is that what yall freaking want? We can barely live now. Imagine if Trump won and implemented tariffs. Smdh.
H&M tshirst are going to be $35 and minimum wage will still be $7.25. Corporations will win again. Yay
Preach, brother!
I agree. I learned both of these in high school and took additional classes in college. These are essential classes every American should learn or refresh their knowledge on before making decisions to vote. Remember knowledge is power. Vote blue down the ballot! Go Harris/Walz!!!
Look up what happened to trump tariff on washing machines.
All of u in the comments saying no
U dont even go to vote
Go and vote if u dont think so
Kamala for president 💙
To bad The New Stations won't show this or even Maga
This kind of thing is demonstrated really well with resource management games. You never want a worker performing a task when there's a different task that they can do better than anyone else. By assigning the right jobs to the right workers, you maximize the benefits to your system. In this sense, it's better to let multiple workers individually do their own thing and share resources than to isolate each worker and have them try to do everything for themselves individually.
Its cheaper to produce because of less environmental regulations to refine raw materials
Then why were they added to the IRA and BIC and then lauded as major economic drivers to incentivize manufacturing production of infrastructure in the US?
The basic function of a tariff is to raise prices so that domestic firms can compete. Reasonable non-economic arguments can be made for doing so on certain strategic industries (microchip manufacturing, for instance) but you have to acknowledge that the economic downside is unavoidable even then. I'm not thrilled about Biden's increases, but they're nothing compared to Trump's proposed 10-60% on literally everything. The effects would be roughly seven times as severe as the current tariffs.
@@MusouInken Fair enough, but also assumes 100% success at the most conservative approach from Trump's economic agenda, which I think would be unlikely given that any such economic proposal would require congressional approval. While there are a lot of maga yes men in congress, they do not constitute a majority of the republican party nor would they have a majority of congress with democratic and more moderate oppositon.
@MattBuild4 Actually, no. Congress has largely delegated its control over tariffs to the president. For instance, Trump did not seek or need approval for his first round of tariffs, nor did Biden need congressional approval for his own expansions.
@@MusouInkenbasically congress didn't contest it. Since trump and by extension, all autocrats treat everything as an emergency, which is bs, they can do whatever they want.
@@sprockkets What can Congress reasonably do? They could repeal or amend the Trade Expansion Act ("as necessary for defense" is incredibly vague and has so far been taken advantage of), but it would have to be veto proof for obvious reasons, or they could try to appeal to SCOTUS, but Trump's personally nominated a third of them.
The first time I ever heard of terrorists is back in the 1980s. I wanted a certain kind of Honda motorcycle in 1983 that motorcycle cost $3,300. So when Ronald Reagan was President Harley-Davidson was not doing very well can you put a tariff on imported motorcycles over 750 cc's. So that same motorcycle the following year cost $1,000 more with no difference. I wanted nothing to do with Harley-Davidson you can put a million percent tariff on all motorcycles I would still never buy one. So that tariff didn't help Harley-Davidson sell their motorcycles It just passed the person more cost in taxes that didn't improve this Harley-Davidson sales. Ever since then I learned it was a bunch of BS. It's funny how the guy who screams capitalism the most AKA Donald Trump wants to use socialist means to control American society.
The real kicker is that they are trying their best to remove people from the equation. The playing field levels out if you're only paying maintenance on a bunch of robots
I’m a machinist working in manufacturing for over 30 years. 3 things work against tariffs. 1) the high cost in time and money to build a modern factory 2) the lack of skilled workers to build and operate those factories 3) the lack of raw materials and the lack of tolerance for the incredible amount of environmental contamination and human health impacts that producing them requires. A cheap t-shirt is expensive in human misery and environmental destruction, we had that in the early days of industrialization in America. Now they have it in China. I don’t think Americans are willing to go back to child labor and rivers that catch on fire.
Also! We don't need to incentivize American manufacturing because America is manufacturing like crazy right now. Our economy is actually really really good
I actually saw someone argue that the US *needs* those low level jobs that other countries has a competitive advantage in. And my thought was "geez. Maybe if the US' education system wasn't a mess, it wouldn't."
Tariffs bring back manufacturing just as much as price controls reduce prescription medicine costs. Both candidates have holes in their economic policy
I tried to convey this point to someone s could of weeks ago. They just didn't understand.
Just to build the factories to make whatever product a company wants to sell is going to be cost prohibitive. So much so that it's probably just cheaper to pay the tariffs rather than invest in those buildings.
All a tariff is a additional way for the government to collect more taxes from the tariffs. Tariffs and embargos destroyed the country under Hoover and caused the great depression.
Generally agree. US and other developed countries should concentrate on technologies where labour rates can be leveraged higher. Ironically, AI and robotics will change this narrative over time as this will reduce labour costs to lower than any human on the planet
Right
He's right
This video is over simplifying. I was an engineer in auto industry. If you strategically tax lower on different raw material and OEM and tax higher on finished product you won’t have to increase product price not much but bring a lot of jobs back.
In the ideal world no country should have tariffs. But at least we need to be able to match other countries tariffs on the same products. I don’t think competitive advantage is relevant when the playing field isn’t the same.
Global free trade was subsidized post WWII by the US navy. The US helped create Chinese manufacturing to capitalize on cheaper labor and expense costs for US companies at the expense of American manufacturing jobs. Executives consolidated so much wealth by offshoring regular things Americans used to make like shoes and gloves.... The chinese government allowed special economic zones to expand free trade strategically in order to establish fast economic growth for china. Nothing is set in stone. Look how fast Guangzhou and Shenzhen changed because of the steep rise in chinese consumer product manufacturing. Wild.
I just want to point out, nearly all of the things said that the US is good at is being attempted to be made by other countries, that causes a kinda panic the idea that the specialties may or may not be overtaken, and hence the issue I find is that it's possible that part of the tariffs may be imposed as a rose tinted glasses and overly rushed answer of someone kinda panicked about stuff hence the ideas are label as possible and viable even if they are not really.
This is the classical economist's answer that ensures market efficiency. What the undergrad econ textbooks never mention are the people who feel left behind for countries to achieve these efficiencies and the impact their votes have on electing leaders who decide whether or not to continue going forward with it.
I refuse to believe that a country the size of the United States, with its vast resources, doesn't have the raw materials to produce a T-Shirt without importation. The problem is Americans are used to cheap consumer goods, due to free trade. $ 20 is perfectly reasonable price for a T- shirt in many parts of the world.
Those who propose tariffs need to accompany their proposals with a reality check, that tariffs mean higher prices.
Tariffs are (by some strange coincidence) are a Soviet idea, for isolating a nations economy from the global economy.. Does work in the short term, long term a reset occurs resulting in catastrophic failure. The market does what the market does.
SUBSCRIBED!! 👍 💪
Any economist know that tariffs will do more harm than good.
What if we do tariffs but have exemptions for critical imports? I voted Harris I'm just curious.
What about making a Quality product and luxury branding.
Stop the price gauging and we bring back real prosperity.
Republicans should realize that having a universal healthcare, free education, and a good public transportation can actually helped your local businesses much better. Just take a look at scandinivian countries, despite having huge taxes, people can still comfortably spend on expensive local products because they don't have student loan debt to pay, medical bills to worry and a monthly expenses on car ownership. Plus, a good urban design that consists of more walkable areas, walking distance stores and bicycle infrastructure are proven to boost local businesses that are more likely to source their goods on local manufacturer.
This description is 100% correct and a very good and simple explanation of the problem with tariffs but still too complicated for the typical MAGA voter.
Need shorter more focused versions of this focused on specific segments- farmers, manufacturers, etc.
The better question is what do they make that from a. Right to repair and sustainability we just don’t need.
I know how bout tariffs on tax breaks for the billionaire criminal class? WINNING!
"Fair trade" is also what made a lot of jobs disappear in America. We can't compete with slave labor from China or any number of other places. No American worker is competing with chinese folks who rent a room at the factory they work at where they made 20 cents a day.
Almost everyone understands this. Increasing tarrifs is not an economic thing , it's a political thing.
He seems biased towards China
The whole point of the tariffs would be to convince gullible Americans to accept low wages, and the loss of unions, the minimum wage, health-care, saftey regulations, and democracy.
Correct Maybe you should be on the Harris train .
Obama said the same thing and yet when tariffs man was in office manufacturing increased. Experts need to improve their experting
$20 is a good deal for a shirt.
expensive for all‼️‼️‼️‼️
Author: Edward Yardeni
National... security...?
The more videos i see like this and the more i find out about China and what they are really doing makes me sad for our western countries. We are falling behind so much that at this point im literally considering moving to China or other easter asia country. The future doesn't look bright at all on this side and neither the left or right get it or just dont care.
A t shirt that cost $10 it will cost the USA citizen a good $30 bucks.
So no more cheap anything.
And that's a good thing, because then the money that it took to make it wasn't slave labor and the money gets circulated.
I voted for trump in 2016. One of the dumbest decisions i ever made. Who knew a 6 time bankrupt bussiness man cant run a burger king let alone a country.
Is this an 8-minute "short"?
20$ is a normal shirt price in 2024, if its ,made in usa from scratch will be 100$
So the Biden admin. still keeping the tariffs as we speak?
Sheesh the way these people talk about the struggles of the working class, you'd think they would be Marxists.
We plant billions of tons of cotton. I woulda said Wasabi, because only one farm in America grows it
The gullible, the greedy and the zealots. Most of the MAGA are two of the these many are all three
RIP 🐿🦝
good example of why critical thinking is important these days.
MAGA - whether you agree with the points or not about tariffs, at least be able to communicate an argument against these statements ... as just stating ' tariffs are good' shows you're kinda mindless and just parroting what your orange leader is telling you to say.
you mean 20% to 500% to "whatever percent" tariffs on all imported goods won't work???? please, explain in an 8 minute video why!!! FFS stoopppppp. i can explain in one sentence: 95% of the world's pcb's are manufactured in china & hong kong, the price of anything with a circuit board will explode
Hey Super Diddy's
I hear you're having trouble over on your Instagram propaganda wing, Sorry, please be advised: *it's not working anymore*
True more$