The Truth About Tariffs
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- Опубликовано: 31 янв 2025
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Mr. Beat explains tariffs. Tariffs aren't usually good.
Uh ok, so this is, like, the description of the video so keep reading. Produced by Matt Beat. Filmed by Matt Beat. Additional images used under fair use guidelines or found in the public domain. Music by Geographer, NEFFEX, Bad Snacks, and Sync Royalty.
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But I could be wrong about tariffs. Let me know down below if you think tariffs are tubular. Thank you to all of my Patreon supporters and channel members. One perk ya get if you donate $15 or more a month to my channel is a monthly shout out, and now it’s time for that, eh? Starting with my biggest donors and reverse alphabetically, thank you to Trevon Jones, Sean Conant, Robert Kandell, Psycho, Patrick Steward, Pat Iapicca, Nik Everett, Nicolas Dronsky, NeoR14, Michael Cortez, Joe Cook, Jesus Carillo, Jeremy Dunham, Isaiah Warfield, Isabelle, HistoryNerd, Fletch Fick, emptymachine, Derek Williams, Corey Rieman, Chums McGuffey, Austin Siros, Anthony Beckett, Andrew B., Alvino V, Alicia Solberg, Zachary F Parker, Victor McClean, Ty Marwitz, Thomas Oppenheim, T C, Steve Bryan, Stacey, Salty, Raquell Jones, Ralph, Oliver E., Navincitron, Naterade, Michael Schillo, Michael Burt, Justin Love, Joshua Jackson, Jennifer, Jakob Birnbaum, Jack L, Erik Hernandez, Erik Davey, Emily Glover-Wilson, Elias Pierce, Andrew Schneider, Aditya Anand, and Adam Christians. Hey thanks to ALL my Patreon supporters, and thank YOU for being curious.
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Real
Damn your 43 and Drew is 32, wow time does fly
You should make a video about Luigi and how the American health care system has lead to this moment of backlash and how this isn’t the solution but instead how we can solve this through legislation
@@jaguarmemezyeah I agree
This video proves the president can have the power to make economy bad. If Herbert Hoover vetoed smoot-hawley Great Depression wouldn’t been so bad. People forget that congress doesn’t override presidents veto often( except Andrew Johnson).
Regardless of how you feel about tariffs, it sucks that lots of people searched "what are tariffs" only after the election. Like seriously, if you can't be bothered to take 30 minutes to learn about the defining issues of the election, then please do everyone (including you) a favor and don't vote. But at the same time, I have to imagine if our campaigns and news media were less spectacle-driven (and if the average person weren't already so stressed from trying to stay financially afloat), this would be less of an issue.
Especially since Trump wouldn't shut up about raising tariffs. His supporters often just blindly support his ideas without questioning him.
@@iammrbeatwhat's that saying, if you repeat a lie enough times, people will believe it to be true
@@iammrbeat acting as if supporters of other candidates don't also blindly support ideas without question
Well, they are about to get the government they voted for. I hope they like it. Of course if they don't, they will blame someone else.
@@scpatl4now except his fans are going to blame everyone except their dear donny
This video will be watched alot through the next 4 years.
@@JSythe And not understood by the people that need to understand it.
By golly I hope so
Hopefully so. Unfortunately, a certain percentage of MAGARepublicans will continue to "guzzle the 'kool-aid'." The rest will see that they were duped and begin researching to hear the other side's voices.
@@Tcrrorsad, They will just call Mr. Beat a radical left lunatic with pretty much no basis
Won't it be longer than that? This issue might not be going away, the video might still be watched 20 years from now.
Mr Beat low-key being one of the best channels once again by just telling things how it is with a sense of humor
I'm glad you get my sense of humor. lol
His sense of humour is rather unique but I love it
Not just low-key, he IS one of the best channels
@@HypervioletGeometryDashYeah, I love his humor
@@eliplayz22I'm gonna be that guy.
Saying "lowkey" doesn't detract from a compliment. In this case it means Mr Beat is one of the best and that's undervalued, and/or Mr Beat is humble rather than braggy.
The compliment remains, even strengthened by the 'lowkey' prefix
THANK YOU
So many folks don't realize how this is going to affect the average American
Slave labor both across the pond and here is wrong. We should all be willing to pay more so that our workers can earn more.
Indeed :(
@@zoanth4yes but the raise in prices would be insane, especially if we want to make stuff in the us
@@zoanth4 I'm familiar with the Uyghur plight, but not all cheap products are made using forced labor. Tarrifs aren't the only plausible solution
@AC-vc5qp prices are currently skyrocketing due to made in China models, you want to continue that model?
The saddest part is that the people who need to see this won’t and even if they do they will scroll past out of ignorance. Thank you for this video
If the economist are right and Trump goes through with his plan .. they’ll understand it when shit hits the fan
not american but im sure his voters will realize how much they f'd up once your grocery prices and everything else all go up lol. i just hope it won't somehow affect global PC parts price lmaoo
@@Tennyson999Oh they'll realise and they'll immediately blame it on the democrats somehow. Trump can do no wrong in their eyes
@Tennyson999 our grocery prices are already high and trust, if America fails your vassal state will follow suit
@@Tennyson999 lmao right? I'm barely getting my PC setup and thankfully almost done buying what I need before everything goes up. 😂😭
The most common point that tariff defenders use is that USA products are going to be cheaper and sell more. In reality, American companies would raise their prices to match the competition and make more money at the same time.
USA products are going to remain expensive as long as American incomes are decent
I dont think anyone's ever made that argument, at least ive never heard it. I think the general consensus among tariff people is that goods will cost more, but itll make more higher paying jobs, so the effective cost will be lowered or about the same if that makes sense.
not true, undercutting the market is how a company grows relative to its competition. the problem with tariffs is that artificially changing prices decreases efficiency, the problem with many forms of taxation
@sirllamaiii9708 Higher paying jobs with higher priced items just means a rise in inflation. which, in turn, means that said higher pay isn't really higher purchasing power.
@@use10483 Aw thats kinda cute how you think the US market actually has competition.
The price of eggs during the Great Depression went form $0.03 to $0.10 a dozen because of the tariffs. Now just imagine a price increase like that today.
I can. I live in Miami. 60 eggs were about $7 in Walmart in 2021. The average price of that same box of eggs I buy biweekly is almost $20 right now.
@@nestorv7627 That's insane. The problem is that is a lot more than inflation. It is greed.
@@nestorv7627Are you buying gold plated eggs? I buy the big cartons of eggs for $4. I can get them from organic local farmers for twice that if I want fancy eggs...Just looked up the inflation rate in Florida and apparently you guys are above the national average. Sorry.
Looks like my wife's backyard chicken cook that she bought for me to take care of might end up paying off!
@@nestorv7627 avian flu outbreak caused that. You can stop buying eggs until it subsides if you want to save money
Would love a video on what high-paying jobs could replace manufacturing because I can’t think any off top of my head.
Heck yeah. I will have to make this video.
@@iammrbeat
I know, I know, ditch digging. Everyone's going to eventually need a "ditch" of one kind or another (💀) so ditch digging could be "a new and unexpected growth sector"
UBI recipient
Automation engineer. Don't learn how to do a tool's job, learn how to use and maintain tools to do jobs.
@@mrhitech6742I hope not, that sounds like a miserable way to live having to wait for your allowance from Daddy government
An interesting point made by the Wall Street Journal on their recent tariff video is how domestic industries also increase prices after a tariff is introduced. In their example, they looked at the tariffs placed on washing machines. As expected, the price on foreign washing machines increased, but also, the price on domestic washing machines increased about the same amount as well. You would expect that domestic companies might instead keep their price the same and gain market share, but that would mean more units sold, which means they need to grow their manufacturing, which is a very long and expensive process. On the other hand, increasing prices can be done fast and gives more profit immediately, so tariffs cause domestic manufacturers to increase prices as well.
As another effect, even though dryers were not subject to tariffs, their prices increased the same amount also, this is because consumers are used to paying a similar amount for a washer as a dryer, so it was once again easy money. This is why tariffs are said by economists to be an inefficient way of collecting tax, because the consumer is paying more for washers and dryers manufactured anywhere, but the US government is only collecting money on foreign-made washing machine tariffs.
And that's why Trump will put a tariff on electric cars, that way Musk sells the Teslas he produces in the United States at a higher price and also gets a tax cut
Anyone with 3 neurons and enough information can deduce it
simple, price controls.
@@What-ez6im you're killing capitalism.
@@danielch6662yep, they will never implement fundamental changes to the system because every single positive change that hurts the ruling class’s bottom line is “communism/socialism/woke/whatever”
Maybe if c-suite weren't as focused on the next quarter as they were on the five or ten year outlook, it would be different. Change the expiration of the stock options they get and you'd see more long term investment.
Tariffs only work if it's specific and targeted. A blanket tariff on the other hand is just mind boggingly stupid.
Stupid is, as Stupid does.
I am still, just numb over the upcoming administration. God I hope I am wrong, I would love to eat crow!
I absolutely agree with this comment!
I expected to see more pushback in these comments but it seems like the maga crowd avoided this vid
Define 'work', as in what is the intended result that can be measured as working?
@@christiansmith1793 expecting a MAGA person to fully comprehend a 26 minute about anything is giving them a lot of credit
Tariffs, in theory, are meant to protect local/national manufacturers, but in practice, it just gives them an excuse to make their products more expensive.
Your theory falls completely flat if the cost increase is so much that the consumers will not pay. Nobody is going to pay a 200% price increase on a foreign vehicle made in Mexico. They will simply buy a car made domestically. Because of this foreign auto manufactures will start building their manufacturing plants in the USA because they need the American consumer base to sell to.
@@mattdeluccia153 And then they will sell those domestically manufactured cars at 190% the initial cost because they have no foreign competition.
They will still increase the price to just below The most consumers are willing to pay@@mattdeluccia153
@@LeDoctorBones That’s a very fair critique, but I doubt domestic producers would do that. Like I said before, these companies want to sell as much product as possible. Every car they don’t sell is a sunk cost that depreciates in value over time. If people can’t afford the product, the maker won’t be able to sell it. It’s not like people will not be able to get a car since there are millions of used cars for sale throughout the country. I’m not an economist but my family has been in the auto industry for generations and I have a decent understanding of how that business works.
@@mattdeluccia153 Wait, you doubt that companies, who are driven by a desire for the biggest profit margins possible, won't jack their prices up because they can? They did it and blamed it on inflation already. Kroger admitted to it. And if one was doing it, more were doing it. And you don't have a good idea how it works, since all the electronics and wiring and steel and plastics and spark plugs and components, including the rare earth elemental and rare earth minerals necessary for computers and electronics that are not mined here in the U.S. and cannot be mined because they do not exist, need to be made in the United States, as well. So, it isn't just one company jacking up the prices. It's *tens, if not hundreds, of them*. And you, my friend, get stuck with the final cost. China already slapped a ban on imporing rare earths to the United States, and Trump doesn't care about allies, so I hope you're ready to watch computer prices fucking skyrocket. Now, add to that yet another cost in the form of tariffs. When you people trigger another depression, on top of a Measels outbreak or Avian flu pandemic, since adults remember how well he handled the last one, you'll have nobody blame for it but yourselves.
I knew Trump was a big tariff guy, but the fact that he just said that the favorite word in the English dictionary is tariff is the funniest thing.
And he knows words, he knows all the best words
That statement sums it up pretty well. No one who has in depth understanding about a topic X will just say that X is their favorite word. Most likely, if there's a favorite word in the first place, it'll be some obscure term. It's all the same again as the ineffectiveness of building a wall to solve immigration
it really isn't funny, this moron will (again) be the most important person in the world soon
He's probably the most hilarious president we've had
He and his donors will be exempted of course
Tariffs are taxes on the poor. Trying to save money by buying cheaper Chinese stuff? Well, you got to pay more now. You got to pay a poor tax now. Cause the company or country ain't paying it. They just adding it to the price you pay. And now that Chinese stuff costs more than American stuff. American companies raise prices for more profit because they can.
This is exactly the plan. Trump will continue to cut taxes for the rich while raising them for the poor. Absolutely vile
You are Woke
Tariffs are regressive taxation
Thank you for pointing this out, Tyler! They hurt poor people and small businesses the most.
It’s pretty pessimistic, but I think this is absolutely the reason trump wants them. It’s an easy way to hide making the tax bracket more regressive while further reducing taxes on the wealthy
@@iammrbeat That, and they have typically transferred wealth to the elite at a faster rate too. Although I think you actually did point that out without saying it that way. Thanks for all the great videos.
@@iammrbeat They're are going to cut SNAP, Medicaid, and TANF. All while cutting the number of agriculture workers and increasing tariffs. Poor people are about to have a really rough 4 years.
@@iammrbeat liberal propaganda. Washington state has high sales tax on goods, but dosen't tax inome, it is doing well
One motive for adopting the U.S. Constitution was that trade barriers among the several states were bringing them to the brink of shooting war.
Today, nigh nobody is more worried about the trade imbalance between California (world’s 5th largest economy) and Montana (population less than San Francisco County), than about that between two streets in the same town.
The latter can actually be very significant due to the dynamics of capitalism concentrating ownership in cartels that maximize profit by reducing real market freedom - and not putting profit back into circulation in the community from which it’s extracted.
The phenomenon of racially segregated slums in the USA is a microcosm of how this plays out in global imperialism.
What too many fail to recognize is that empires of financial capital are the real great powers today, using (or disposing of) nation-states as serves their interests rather than the other way around.
Where we have institutions of popular electoral power, it’s the electorate’s own allowance of the propaganda big money buys effectively to dictate how they vote - even beforehand routinely setting the very menu of candidates on party-primary ballots - that enables perpetuation of unpopular policies.
What would be for the majority better than tariffs is simply requiring that _anyone_ selling goods in our jurisdiction must meet minimum standards in treatment of workers, customers and the environment.
Were the peoples of the USA and Canada thus to form a united front, their combined market would present an irresistible incentive. The leveling of the playing field would get us out of the race to the bottom into which we’ve been plunged.
The competition among segments of labor would then be chiefly not on the basis of lower wage but on the basis of greater productivity. Investment in education, health and infrastructure can in that respect (as well as the more obvious ways) pay dividends.
Unregulated capitalism is like a cancer the growth of which eventually ends itself by destroying too much of the host organism, that being the market of workers/consumers.
However, the big winners in that game of musical chairs on the sinking deck of the _Titanic_ will be poised to dominate a reversion to something more like feudalism.
If you actually need to work for a living, then in that event you definitely won’t be a winner.
Dang, what an impressive comment 👏
Yeah but no one has the nuts to tell China to stop employing slave labor.
I think it's important to note that tarrifs are an inherently regressive form of taxation - rich people do benefit from them replacing income tax, but not everyone else.
Our nation did very well before the income tax.
Yep! Tariffs hurt poor people and small businesses the most.
@@zoanth4 yea but that was an incredibly long time ago, you can’t compare that to today
@zoanth4 ok? Income tax isn't being totally replaced, just reduced for wealthy people and tarrifs are being used to account for the missing revenue. Tax burden isn't going down, it's just being shifted towards middle class and poor people.
@AC-vc5qp well the mass welfare state and foreign aid industrial complex scam would go away. I'm ok with this
No tariffs without representations during normal times
That's the thing. We are in normal times, and yet politicians are wanting to raise tariffs. It just doesn't make sense.
@@iammrbeatthat’s because some politicians make no sense at all. They want to create an invisible problem/enemy or make a mountain out of a mole hill just to win votes.
@@iammrbeat The economy is terrible and the world is on fire, we are not in normal times
tariffs, taxes, sending aid to other countries and war should be put on national votes
@@John.Smith98765 The economy is actually the best it’s ever been, it’s just that it’s all going to the billionaire class.
But don’t worry, I’m sure all the billionaires in the incoming cabinet won’t act in their own self interest like they have been their whole lives
I feel like something else that people overlook is that if international products are higher in price, domestic producers (if they hypothetically make everything) will meet in the middle and prices will be higher as a result. Profit is the bottom line and this would allow those companies more profit, either way it’s a lose lose
@@weasel3299 I was waiting to see if anyone had pointed this out. This is one of the most important effects tariffs have on prices.
They tariffed the washing machines, and this increased the price of not just locally made washing machines, but also spilled over into other household appliances that weren't directly targeted by tariffs.
that's exactly what the pro-tariff people say, though. The prices go up, the profits go up, more companies join the market to taste the profits, profits and prices go down again until you're left with a competitive market. Now when you get rid of the tariff, you have a strong, efficient, cheap, functioning local industry.
I'm very much against tariffs but your argument here against is rather an argument for.
@@duncanhw that’s just not what happens. See, if their competitors prices went up, wouldn’t their prices stay down to begin with? Yet thanks to easy profits, they just raise prices instead of trying to sell more units. If other companies joined the industry because of high profits and managed to scale up to be worthy competitors, reality shows that they often keep prices high. Why? Because they joined the market specifically because profits are so high, so why would they lower their prices and miss out on high profits?
Reality has shown repeatedly that everyone raises prices to match with tariffs, it does NOT go back down again.
This was likely a feature, not a bug, to whomever whispered this idea into trump's ear.
I love Mr Beat videos. This one is one of my favorites. Everything is explained so clearly and in a way to keep interest throughout the video, your sense of humor and goofy authenticity is such a strong strength of yours and you know to lean on it. I hope you do end up doing a video on why no good jobs have replaced the old ones that went away with manufacturing jobs decreasing. Thank you for educating us and for being yourself! It's helping a lot of people.
Fellow teacher here! My students have been asking about tariffs. Your video will make a great review!
One thing I don’t think he really emphasized enough is that domestic producers will also be able to raise their prices close to that of the foreign goods anyway.
Basically, the domestic producers can either keep prices low and capture a larger market share (which is the purpose of the tariff), or increase their prices too. In the first case, they might not be able to currently produce enough to meet that increased market share without investing to expand production. This is often a lot less attractive than simply raising prices which is an immediate and easy means of profiting. Especially if there’s no guarantee that the tariffs will be in place forever.
Tell them about that too
Thank you for doing this. 2024 has been exhausting after debunking flat Earth "theories" and explaining why 1x1 does not equal 2. Now I can share this video when someone claims tariffs are paid by other countries or will magically lower our prices.
A week or so before the election I saw a clip of trump on Fox News. This isn’t a perfect quote but he said something like, “Times are tough for Americans. Americans have never had it so bad. We need to go back to the way it was in the 1890s. That was the best time and it hasn’t been that good since.“ 🤦♀️ What does he think was so good about the 1890s?
1890s was the Gilded Age, marked by tacky excess, robber barons, and corrupt politicians. Of course Trump would love the 1890s, he'd fit right in with that time.
So we finally know when America was great.
I suspect he meant 1990s, but man, that's the mother of Freudian slips right there.
@@TheWipeout32 he probably was referring to the 1890s since he’s spoken a lot about his admiration of McKinley.
@@wailin4192 On one level, that's surprising he knows about McKinley at all. On the other level, that he'd admire a president who instituted a genocidal policy in the Philippines doesn't surprise me. On the third hand, does this mean we get someone who admires TR and wants to be TR after him? Man, I hope so. We're in desperate need of some progressivism in this country, and not the infantile stuff you see on Twitter and Tumblr. Real progressivism; pro-union, pro-labor, pro-living wage, pro-UBI, pro-strong Kennedy-style Square Deal/New Deal progressivism.
Don't forget the part how North American manufacturing business owners simply moved their businesses to Mexico or overseas, or their purchases for their business. They then just pocketed the profit from the cheaper labour. Short term gain with no consideration for long terms effects on employment in NA. Not sustainable.
Agree, 💯, but also add to your post , if you want to or have the time , CONGRESS COULD HAVE STOPPED the companies from moving BUT CONGRESS DID NOTHING.
in many ways the above scenario explains "drinking from the same trough"
@@mattsmelley5569
You're all so cute, believeing the idea that businesses engage in long term thinking. Like bruh, the US economic system is a bunch of companies fighting to the death until one or two emerge victorious in each sector and then maximizes short term profit. Capture of congress by the rich, outsourcing, consolidation, these are all the system working as designed.
@@mattsmelley5569 Yes, I'm in Canada and our government did practically the same.
@@Crunch104
Thanks, 🤔🤔🤔 I'll think on it
Economics professor here. Thank you for your service. Well said.
I love how politicians are always rambling about trade deficits meanwhile economics professors just shrug and refer to them as “foreign investment”.
Thank you, Mr. Beat! Your videos are so educational and entertaining. :)
Thank YOU
Interesting timing for this video Mr.Beat 👀
I got soo many requests to make it. I gave into peer pressure. lol
@iammrbeat haha lol love you man
I believe Tariffs are a necessary and important tool for governments to use, but the key is, like all other things in economics, MODERATION, which in the case of tariffs, means using them very rarely, and only in specific circumstances. They have their use, but they can be dangerous when mismanaged.
Why punish people for buying a better product? If a foreign country makes better cars and you tax the consumer, that does nobody any good.
@@millabasset1710cuz buying things off of slave states is wrong?
Plus it drives down our wages
They should RARELY be used.
@@millabasset1710 oh I agree. At the end of the day, if people want to buy a better product from a foreign business then they should be able to without being punished with increased prices. Tariffs are something that should be used sparingly and only in specific circumstances.
@@millabasset1710 The only real use case that I see for tariffs is in preservation of the military industrial complex. For example, limiting car importation not due to some kind of market fear, but because you want to preserve your motor industry for potential use during wartime.
Same with steel or electronics, wanting to avoid become too dependent on foreigners so that during national emergencies you can still produce domestically. If you don't do this somewhat, you can end up like Russia with very poor domestic production causing an overreliance on imports and reducing military capacity.
The world is better when this guy uploads
Aww. Thank you :)
no problem my favourite should be senator
People are angry because rich dudes are abusing the system, so they voted a rich dude in to "fix" the problem. Totally makes sense.
Trump was already President and our economy was booming. 2018 was the record year for the highest average take home pay of ALL Americans in the entire country…
@@6z0 If only the world was so simple.
@@mikechiu9767 Bill Clinton, Barack Obama, Joe Biden, all rich men that democrats voted for to “fix” the problem. Hahaha you know Clinton was BFFs with Trump during Clintons presidency? How much did democrats benefit Trump in the 90s by voting for his buddy?
@@6z0It was because of Obama the economy was doing well. Trump just happened to be president and hijack the credit.
People aren’t smart, especially when they’re angry.
No thank you. I want to stay ignorant so when it affects me negatively I can complain about it. But I appreciate the effort.
Curse you MAGAAAAA…(raises fist) ✊
Even as someone who thinks tariffs can be beneficial in some instances, I fully acknowledge the economic damage it can cause as well.
Gotta think in the long term bro.
Everything electronic lasts 5 years and wages suck.
I'll gladly pay more to reverse this.
Because you actually study economics, and good for you!
@@zoanth4 You wanna pick up the tab for my increased costs as well?
@@zoanth4 don't matter what country is making the product, they always gonna cut corners to make a profit
@capribreezee well they are public corporations. Its literally job (and the law) that they maximize profits
And yeah it would matter, cuz paying Americans 15 to 20 an hour is superior to paying some Asian slave 2 dollars an hour
Mike from Jersey here. No problem, Mr. Beat. Keep it up
No way! It's MIKE!
your speaking voice for videos has come so far you werent ever bad but compared to your first videos youve come along way
That's kind of you to comment. Thanks for your support.
Let’s also not forget that the reason why he’s pushing Ms. Terrace, like Mr. beat said, is to reduce the income tax. Which really again only benefits, the rich in the long run… everything they’re doing right now is to structure our economy to work for the billionaires
Tariffs ***
This is why anyone who wants to be the leader should be forced to do tests on their knowledge before running.
The voters should take a test.
Watching a RUclips video that is clearly one-sided don't make you a expert 🤣🤣🤣🤦🤦🤦🤦
@@amineau82 You are 100% right, facts are on the left and lies are on the right.
@@Dawg476 That's not what the record says 🤣🤣🤣 all Democrats do is lie even when they are caught. They know some people ☝️ will follow them no matter what 🤦🤦🤦
@@amineau82 my guy was pretty middle ground in the video giving valid and proven reasons why tariffs are both terrible and alright depending on the situation. Although im assuming youre one of those Trumpies who just defends those points for no reason, I dont understand the need to defend politicians. Regardless of party they both suck, especially Trump the moron.
Thank you for trying to explain these things to people. It is painful seeing the direction my country is headed culturally, and I only hope that people like you spreading good, and valuable information, can help to keep us from regressing.
Hey Matt! When will your 2024 Presidential Election video be up? Love the channel.
In February. And thank you so much!
Thanks!
As an Australian, who also loves economics and is studying it at school. US tariffs will also affect other countries too. Since Australia is China’s largest supplier of iron ore the decreased demand from the US (because higher prices and people choosing to buy locally) will mean China will demand less iron from us, therefore, since most of economy is based of exporting iron and other commodities to China we will be negatively impacted. And American tariffs could hurt its biggest Asia-Pacific ally which is important to the US because of our relationship & proximity with China. (Yk, in case of war)
As a fellow econ student to another, let me correct one thing. China will not demand less iron from you, they will simply demand a lower price, using the decreased demand from the competitor as a bargaining chip. Australia will find it has to lower prices for China for the market to clear iron.
Well when you elect a clown …. You know the rest
24:02 I find this part pretty funny
Much of the factory work has closed up shop in rural areas. Many young people have fled rural areas to bigger cities to secure better income.
Cities tax and nickle and dime you for everything your worth, and your worse off with your higher paying job than you were jobless back in the country
So you move back to the country, but have no capital to make something of it
So you start booting shine and weed to make due
But then nothing ever comes to the country
So now you’re just an outlaw doing outlaw things to survive and now you’re stuck
Geez. It’s almost like remote work would have solved this. Can remote work? Move rural. This reduces pressure in the cities and housing and goods become more affordable there for people who cannot work remote to fulfill their duties
Watching this, I kinda miss the days of Reagan, Bush 41 and Clinton, when both parties agreed that tariff's were wrong. Watching this also makes me appreciate mr Beat's infotainment videos, exploring things with fact, but also with a remarkable sense of witty humour. 🎉
I used to have many conservative friends and enjoyed casual debate secure in the knowledge that we all wanted the same things but disagreed on how to go about it. Now, I have relatives who think I shouldn't have the right to vote.
Clinton's deregulation of the banking industry led almost directly to the 2008 recession. NAFTA killed way more jobs than it created, and the only beneficiaries were people who owned stock.
Reagan tried Tariffs about once for steel when the US steel companies promised to invest more if he did so. Then 5 years later Reagan got rid of the Tariff cause the steel companies hadn't invested much and were raking in massive profits.
Gotta love it when the party of free markets and small government uses the government to control the markets
I don't oppose specific tariffs for important industries you want to protect and whatnot, but a blind tariff to all imported goods from a country you don't like it's extremely silly. And of course this type of this also encourages retaliatory tariffs and even smuggling.
That said, I don't think free markets as a whole made the whole world a better place. Lots of countries, including my own, got poorer as our natural resources get extracted and exported to the global north, where a machine does a bit of work, and then it's resold to us expecting to pay a premium. The world economy is bad for the majority of people. Just saying.
To anyone still confused why tariffs are bad, imagine it occurring at a small scale and at an extreme. What if the mayor of your town put a 20000% tax on all goods produced outside of your town?
This is a great analogy
Again, Not everything is black and white. Some tariffs should exist, like on goods Being attacked by unfair trade practices (Like trade dumping) or goods that would cause severe economic damage were they not available (Like Microchips, if China invades Taiwan, they can't make those anymore), but Blanket tariffs, like the ones Trump is proposing, or tariffs on goods that aren't under attack (Like, say, the auto industry) are ultimately harmful. I personally agree that Trump's tariffs will do more harm than good, but not all tariffs are bad
What I am missing here is how the negative effects of tariffs are any different to the negative effects of goods taxes but also they have some upsides and can be more targeted. Goods taxes are way more inflationary than tariffs and don't support local production. They also kill small businesses which have to buy from other businesses, whereas businesses which can control the while chain don't have to pay on each stage.
Basically Corporate taxes
To anyone still confused why laws are bad, imagine it occurring at a small scale and at an extreme. What if a boy stole an apple and the mayor of your town put him in jail for 200000 years????
I’m back as mr Beat’s no1 fan. I gotta up my game again, embarrassed to say.
I love the pfp
@ yeah me too
OMG thank you for making this video!!!
Well thanks for watching!
Thank you Mr. Beat!!!
Well thank YOU for watching and being curious. :)
I can’t believe the slimy billionaires don’t have the working class’s interests at heart.
The video ends at 1:07
This is how exactly I’ve been explaining this issue to people. Thanks for the ammo!
Great video! As soon as you mentioned the Smoot-Hawley Tariff Act I started replaying Ferris Bueller in my head - and then you played it in the video! 🎉 💯
haha I'm glad you also appreciate that movie. I love pretty much all John Hughes movies. I covered a couple of them on my other channel, as a matter of fact. Looking forward to catching up with you next week!
It's going to be 1930 again when Mr. Tariff takes over.
The only saving grace is that 2028 might be like 1932 again. Man I would love a generationally amazing President. We're probably gonna need one too to fix the damage.
23:13 I was called a "Simp" and then got an ad.
@@ReanuKeeves69 same
QUALIFIED ECONOMIST. Tariffs can be effective to an economy IF it counters an in balance between the two economies that is unfair. The obvious one is SLAVE LABOUR. So if China produces a good for $1.00 and Australia produces it for $1.50 ... most people would think a $0.50 tariff would balance it. Wrong, thats a trade deficit debate. A fairness debate is Australia's minimum wage is $30ph and China's is $3.00ph in Australian dollars. So, an average manufacturer produces 100 items per hour of labour cost, meaning each item has $0.30 of labour costs in Australia and $0.03 of labour costs in China. Meaning the tarriff should be the difference, being $0.27. THUS, a tariff would mean Chinese goods sell for $1.27 and Australian goods sell for $1.50. If the government needs more taxes than it should cost $1.37 for Chinese goods and $1.60 for Australian goods. If they are both the same quality then CHINA will sell more goods in Australia than locally made. TRADE SURPLUS/DEFICIT is not a reason to introduce a tariff as shown here!!
Love your content, I look forward to every video!
Thanks :)
Greed is going to be the downfall of this country.
Or it won't, but it sure feels like it will.
Rich are going to get richer and the poor will get poorer.. it’s been this way forever and politicians ESPECIALLY the billionaire/millionaire politicians aren’t going to change it
Thank you for your hard work and promotion of knowledge Mr. Beat!
thank you mr beat for putting all the sources in description i was just thinking about how to spot biases
i’ve talked to a trump supporter who said she voted against kamala because she didn’t run on policy (which i don’t even disagree with) but then when i ask her what she thinks a tariff is she tells me it’s when china pays us for some reason. tariffs were one of the biggest “policies” trump ran on but i’m supposed to believe that these people voted based on policy 😂
That is just so depressing
Trump was literally the one who had "concepts of a plan".We did a starter for history where you would look at Trump v Harris policies next to each other and it was even worse than I thought. It just said "Trump didn't say what he'll do about this" basically for most policies. (And he said climate change is a "hoax") The media was trying to play both sides and it made it seem like this wasn't the case.
We have probably the least informed electorate in the democratic world. It's sad that our elections really are purely vibes based. People only react to what they are feeling in the moment, and our society is losing the ability to think critically about proposed policies. This needs to change or things won't get any better.
@chronogamer7901 getting big money out of the system is step one. According to Bernie Sanders, he knows lots of democrats that couldn't vote against sending money to Israel because Aipac would stop giving them money. A big part of the reason why many reasonable people you and I know voted for Trump is because Trump could afford more propaganda. From an outside view, most people can see voting for Trump is insanity (also Harris actually was a great candidate imo)
Reading that person who has no idea how tarrifs work is a good example when the republican party shut down the dept of education leading to idiocracy
Let’s just hope presidents act as they usually do, not keeping their campaign promises. 🤞
Trump keeps doubling down on tariff threats since the election, which makes me not feel optimistic about that. He is also backtracking on his promise to lower grocery prices.
@ I’m not optimistic either. I don’t know how people fell for lowering grocery prices. I mean, tariffs are going to inflate grocery prices even more, but you can’t tell that crowd anything.
@@chelseyislol74don’t worry. Deporting the underpaid immigrants who pick all our fruits and vegetables will make up for it
Trump literally wanted to make it illegal for parents to buy violent video games for their children when he first ran in 2016. I think we’re good. Hopefully he doesn’t keep his promise on this one😂
Yeah no...
Best case is we get a weaker version of these tariffs, and thats being nice.
My, extremely broke, household has pretty much already entered what I'll call a small-scale famine in the past few days due to how high the cost of living is now. Never thought in my life I'd have to go a few days only living off of bread and hotdogs but that's the reality. Tariffs will make this so much worse.
and yet i bet you still supported biden
@@therealjjwatt Love the assumption when I voted for neither candidate. Sorry to tell you but Trump is not going to help or save our economy, his tariffs and blatant pro-corporatism stances will make things significantly worse.
@@ImSomethingSpecial you do know biden is incharge right now and you said your struggling to buy bread? keep blaming trump tho
@@therealjjwatt I don't recall once saying things were good under Biden. I seem to recall actually saying things will not get better under Trump and are instead likely to get even worse.
@@therealjjwatt If he was smart he would have supported Bernie, don't worry, you'll really feel the pain too soon enough when Trumpflation really hits
Thank you Mr.Beat for talking about this it sucks that most people are only realizing this after the election
As a multi-billion dollar company, i think tariffs are based, actually
Thanks for all you do truly appreciate your content!
THANK YOU SUGAR
Tarriffs isn't the answer but something needed to be done about the decades of manufacturing outsourced to 3rd world countries to exploit child/cheap labor. It's an economic, humanitarian, and security issue especially since our biggest trade partner now is a one party state that was just recently aggressively posturing on taking nearby territories.
I agree!
I big issue IMO is that Tariffs are a blanket punishment. I don't think people would be opposed to a morality-tax wherein if the producer cannot prove that they pay their workers/don't use children/caged animals (etc.) they are taxed to offset the end-consumer price difference that would be lower than products that weren't made with morally dubious methods.
I would support that 100%
These exploitative companies couldn't care less until it effects their profits.
But instead the big T decided on blanket tariffs on everything 😒@to101md
Here's the thing: for developing countries, it's not a humanitarian issue. Child labor is bad, child starvation is even worse, and millions of children in India are suffering from malnutrition today. For them, working in factory is the least bad option.
Capitalisms success is dependent on the exploitation and suffering of others. Until we can acknowledge this fact, the conversation goes nowhere.
Everytime we have had tariffs get close to 40% we had a depression and 60% a major depression
Are you talking average tariff rates or tariffs on specific goods?
@iammrbeat avg tariff rates.
My dad thought that tariffs were the international companies and we would get the money but I had to explain to him no, in a Mexican restaurant, then he started to talk about the border and cartel in said restaurant (it was so embarrassing)
Thanks for making this topic easy to understand and with historical context as well!
The worst thing is they're trying to do away with the income tax and fund the govt (ie military) with a consumption tax (tarrifs)
That way they can sell all their stock and not have to pay any taxes
My girlfriend got me a Eisenhower, Nixon 1952 hoodie!!! It also says for America! I was so happy to hear that he was your second favorite President and I actually used some of your videos to write a short essay about him on one of my exams!! Love you
That's amazing! I need to get me one of those, especially since I appreciate Nixon more today than I used to
@iammrbeat Would it be possible to hear your reasoning for your more positive appreciation to Nixon?
I'm curious as I grew up in a Chinese family who view the Nixon as an important figure that led to opening relations between PRC-USA, but I am not American, so I don't know much about Nixon beyond the big events. Thank you.
I have a really big trade deficit with my local taco bell. I just give them money and they keep giving me cheap crunchwraps and I haven't sold them a single taco. I think I'm going to just throwing ten percent of the cost I pay for taco bell into the trash to incentivize my own fast food production.
Thank you, Mr. Beat. More people need to watch your videos.
Banger video, definitely should be seen more in the next few months and years
this was a top 10 funniest Mr Beat endings, i laughed so hard man
The guy arguing about "referrals" is exactly why America, as a collective, stays dumb on the real issues! He is very popular and is about as ignorant on economic issues as anyone I've ever heard. Yet, people cling to that guy because of their own identity politics!
great video with facts and shown precedence on the effect of tariffs, however have you thought about our poor conservatives' feeling when making it ?
More people need to see this video. Thank you for making this!
Best teacher on the planet 😊🙌🏾🙌🏾
I hope Trump does the tariffs. People need to see the difference between good and bad policies.
People are too stupid to learn the lesson. George W got a second term for f----s sakes
tbf the trumpies would find a way to blame trans people for it rather than their idol
They only triple down, no self-reflection or admitting they could have ever been misled.
I wanna point out that the western working class isn’t protesting about free trade. They’re protesting the export of manufacturing jobs that used to be well paid.
The issue is that’s the reason why those jobs got outsourced. Companies want the cheapest labor available (preferably slaves), and countries like China are willing to provide that labor for pennies on the dollar. As long as companies are given free reign to slake their endless greed, nothing is going to change. Tariffs won’t help. They’ll simply make everything worse.
You said companies go overseas for cheaper labor. Then why wouldn't tariffs bring that labor back when it cost more to import then produce the product here?
@@amineau82 Because it would still be cheaper to have that labor overseas even with a 100% tariff. When I say "pennies on the dollar", I mean that literally.
@@amineau82 Well those countries pay less because it costs less to live there. An apartment that is $1,000 here might be $100 somewhere else. So when you see people getting paid $500 a month, that doesn't mean the same for them as us. What might seem like slave labor here might be a decent wage somewhere else. Of course that isn't always the case and China has been guilty of that in the past, but China isn't really the stereotypical "slave labor" place we used to think of it as. Costs and wages have increase a lot recently and this has in turn led to increased quality to compete (though not as good as us of course).
@@amineau82since their "American" companies and "American" goods, what tarrifs?
Weird how they blame the workers in the other country rather than the employer who moved the jobs and the consumer who wants the lower.price because their employer wants to pay less too.
The importer pays the tariffs and everyone along the supply chain wants to keep their margin. So, not just does the state make more money (thus being able to reduce taxes for the rich), but corporations along the way do as well (thus increasing profits for the rich). That's why it makes sense that tariffs is Trump's favorite word. It makes more money for the only people he cares about.
Explain how tariffs make more profit for a corporation.
The rich definitely benefit more.
@@Tom-f8r8o Imagine if all imported goods cost 25% more.
Now all companies can raise prices by 20%, inreasing profit margin while still being cheaper than the foreign products.
Alternatively, they can raise their prices by 25% as well and change nothing, except now they earn more while the average joe get less for their money.
Remember, shareholders seek infinite growth, only regulations can halt or reverse price inflation.
Love your videos. Super informative with a splash of humor. Thanks!
Thanks for making this sir. I have always had no clue in your live chats when people beg for videos about tarrifs
Half of America's voting electorate needed to see this video two months ago...
Will we ever again have a government that's concerned with making life better for its citizens rather than for itself?
Trump is the closest thing to that
These next 4 years (hopefully 2 if the senate and/or house flip, stopping any horrible policies) will be the biggest “I told you so” in American history😂
Republicans won so they could stop Biden's horrible policies. (Like letting in millions and millions of cheap-labor illegals.)
Hopefully the house never flips again. Weird leftist ideologies are dead . The people have had enough of DEI, racist and sexist. Democrats keep these views alive to divide the voters in order to win. American has realized how ridiculous fake the news is.
Trump imposed tariffs in his first term; while inflation worsened because of those, other administration regulations still slowed it down. Way better than the current administration. It is in all American's best interest to wish good luck to the new administration and hope that they do their best
@@paullol7852 you do know that those tariffs made them have to bail out farmers and industries lmao
@@paullol7852 the farmers suffered in trumps first term Fox News just didn’t talk about it the way they talked about Hillary’s emails and Kamala’s laugh
mr beat ur awesomeeeee !!! keep uploading i love seeing ur videos pop up on my recommended😩😩😩
This video is going to teach people to educate themselves and do research about what theyre actually voting for next time. Thank you very much Mr Beat. Love your channel.
What were you voting for if you voted for the other side, in this election you really just didn't have a choice. But this video is running off protectionist tariffs and is blatantly skewed towards the DNC, but protectionist tarrifs arent what trump's doing, his tariffs are targeted and not universal, targeted tariffs dont raise prices because the US and China are not the only ones in the market there are others. This video also runs on the myth that the consumer pays the price of the tarrif which is ridiculous because the tarrifed nation has to lower prices to remain competitive or else they lose profits due to a loss in market share. Generally profits from the initial sale are not as important of profits from volume. Regardless the president elect has even said if the market doesn't sort out the tarrifs they adjust them.
Aren't tariffs a form of big government overreach? I thought the right was against govt intervention in economics
That's true but Trump is a 90's Democrat. He's not right wing.
tariffs are just taxes by another name.
It's only government overreach if it's something they don't want
@@mikeoxlong3676no way. Trump loves defrocks spending.
Deficit
With Donald trump we will ALWAYS go backwards…. He’s never going to put this country in a place it needs to be.
He can’t run a business and he sure as hell can’t run a country
He knows how to grift suckers though. I guess that's all it takes nowadays.
Pt barnum said there’s a sucker born every minute
Don't want to hear it from the people who propped up a walking corpse
@Galow311 who invested in infrastructure, housing, chips manufacturing, green energy, and attempted to reign in excessive education debt.
lol, and We Won Popular Vote, FYI
As a person who also made a tariff video (really podcast) that isn't as nice to tariffs, I think one major issue is the fact of the analysis.
As you state in the video, very few people benefit from Free Trade. Its a common misnomer that Trump uses that countries like Mexico are raking in the benefits while Americans get screwed, when that is FAR from the truth. Not only has Mexico not seen real wage increase until AMLO directly implemented policies raising wages, but resources from Mexico would then be taken by American Companies and sent to the US, a bizarro version of "The Large Sucking Sound" that Ross Perot would talk about with NAFTAs implementation. With American Companies being able to overcome a legal loophole in the Mexican Constitution that prohibits the taking of indigenous land.
Will Tariffs fix the problem, not necessarily because simply ADDING tariffs to the economic system we have now still has greedy companies looking to exploit people, as is happening now with companies preparing. While you could enact policies that could negate the negative effects on tariffs, that can't really happen under capitalism as a whole.
Trumps specific tariff plans are dumb because of the amount, how he plans to implement them. and the fact he's a billionaire fraud only looking for a way to make the rich pay less. And it has been especially hilarious to see Trump Supporters thinking that implementing Tariffs on Mexico is some sort of threat to them because they are too America-Pilled to look at the objective realities of the situation. Under our current free trade deals; Mexico gives us 60% of our Fruit Supply & 1.8 billion barrels of oil, the US gives them Lays Potato Chips and 70% of the weapons used by the cartels....oh no what will Mexico do if the US and them have to stop trading....especially since Sheinbaum is already implementing policies to make Mexico more self sufficient in food agriculture and other things. If the US gets hurt in a Trade War our Billionaire in chief is going to make sure Elon isn't hurt, meanwhile if Mexico gets hurt Sheinbaum's going to help the people.
Actually, I thought Mr. Beat said that free trade does more or less help everybody.
I agree with everything else, pretty much.
@jagolago-bob Well he brought up how real wages have not gone up, but does the more broad take of "Things are cheap". Which means little if wages don't account for that.
I mean if he did say that, it'd be wrong; Free Trade is a handout for the Rich Elite.
@@EPluribusUnumYT I think he meant that despite our wages not increasing, with low tariffs we have still been able to buy cheaper imported products (which has hidden our real situation)- the rich have got richer.
The rich elite have always looked to get richer, at everybody else's expense, free trade or not.
@@jagolago-bob Its po-tay-toes/po-tah-toes IK, but without wage increases any "benefits" of free trade are borderline nonexistent.
Omg thank you! My bf’s dad was in town last week and he brought up the tariffs. I never talk politics with him because we have different views - like what’s the point? However, this one was an easily talked about objective truth. He thought the 3rd party companies pay, not the company importing the good. It started to get heated, so I busted out an Investopedia article about “what is a tariff”😂. He basically ended it with, “well Trump will help us out. They will figure it out”. Okay my guy 🙄🤷🏻♀️. I have never had so much faith in a politician. Even if the person I voted for wins, I’m still like, “yea, I’ll probably be pissed off at them 6 month in”😂
I like this change in direction, Mr. Beast. I think all the controversy will blow over any day now. I support you
When I say the average consumers will pay more, everyone laugh at me hahaa
They won't, because American made products won't price hike to the beat if the tariffs like you liberals say, if you keep prices low you increase market share and get more profits by volume.
The people who need to see this will not be seeing this unfortunately
I for one welcome higher prices. I'm tired of going to the store and only spending $250 for my groceries. I want to spend at least $500 doggammit.
Soon!
Do you know who invented the word groceries, it may surprise you?
Day 0 of asking for that Tariff video! Thank you so much for this video. It always amazes me that people don’t know this stuff but sometimes you just got to explain obvious stuff.
Hello mr beat I enjoyed this video thank you for making me smile today :)
Edit: also i am from scotland and have seen the adam smith statue too
I kinda wish this had come out before rhe US election