Economic Update: The Political Economy Of Tariffs
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- Опубликовано: 27 сен 2024
- [EU S14 E23] The Political Economy Of Tariffs
In this week’s Economic Update, Professor Richard Wolff devotes the entire program to an analysis of tariffs. We discuss why tariffs are not a worker's issue, why capitalism's continuous swings between free trade and protectionist periods and phases make little impact on workers, and why competing capitalists seek to get workers to support their positions on tariffs.
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Protect this man
Thank you Dr, Wolff you are an amazing human being. I learn so much everytime I watch your show.
He's 'opened the door,' so to say, for SO many people ... myself included, if we can go back 10 years.
I remember when D@W had fewer than 15,000 subs.
I have critiques of Dr. Wolff's work, as has come from further development and education; but I realize that his work, and his analysis, fulfills a function which does exactly what I first suggested. It opens a door, which would otherwise, remain shut.
DR Wolff, the distaste in simply the movements of your mouth is palpable, and I love it.
Hi, just wanted to say how much we appreciate you. Keep up the good work.
Thank you for the discussion.
Excellent. Professor Wolff explained the topic of tariffs very well. The American consumers are the true suckers, having to pay more unnecessarily. Sad the government is doing a disservice to their own people. 🙄☹
In actual fact Americans are forced to purchase from one producer no matter the price...
If you are an American desperate for a Chinese EV then go ahead and buy one. But do not think you have the right to wreck the American auto industry by purchasing a foreign made product that is sold below cost because the Chinese government hands out money to Chinese manufacturers to operate at a loss in their own country.
The argument that American consumers are hard done by is false but the economic environment and ecology of the US has to be protected by government or Americans will lose their jobs.
And incidentally Tesla also received tariffs.
If you are American, desperate for a Chinese made EV, then buy one and pay a similar price for it as an American one would cost.
The question Americans need to ask themselves is if they want Chinese made products that are heavily subsidised flooding into the US and putting US companies out of business because US companies do not receive government help in general. US businesses have to borrow to invest and employ workers. In China the average salary is around $3 an hour and the Chinese do not have homes. They live in boxes with no labor rights and no job security.
@@kgapholasegadimanebethuel3873 That's true only when there is only only producer, and that is very rare.
@@arthurlincoln9093 U. S companies that cannot compete with foreign companies should go out of business, because that makes both countries better off by keeping costs low for everybody..
Dr Rich all the love from greece we need your courage
Good information as usual professor
That's what a lot of our people don't understand - that the capitalist ruling class is not monolithic, there are sharp divisions amongst them.
We see this reflected in mainstream bourgeois politics. The Democratic Party represents one faction of Capital; and the Republican Party works for another faction.
In the case of the Democrats, it's the long-noted 'Eastern Establishment,' the Old Money, Finance and Investment Capital, the famous "60 families" of the Northeast. The infamous 'Robber Baron' families of the 19th and early 20th centuries. In essence, the Democrats represent Monopoly Capital.
Meanwhile, the Republicans work on behalf of New Money, which sprang up in the Southern and Western parts of the country, in the wake of WW2. They're largely indebted to the aerospace industry, the defense contractors (who spread their blessings evenly), agribusiness, land speculators, real estate, box store chains, and gambling casinos. The GOP is the party of what was called 'The Sun Belt' back in the 1970's and 1980's, where the new Southern Rim establishment has taken root. They aren't as wealthy, or as seemingly investment saavy, as the Old Money cartels; and many of them are individual capitalists whose portfolios aren't as diversified as someone whose last name might be Morgan, Chase, Rockefeller, Ford, or DuPont.
So, these parties sometimes have major disagreements, but most of what they fight over has little to do with the common interests of the American People.
One group wants to maintain and expand its monopolies, and the other sect wants more and more accomodation, from the government and the people, so that it can expand its wealth and influence, some day to join the monopolists, at the top. Of course, there is crossover, and cross-filtration, amongst these factions of Capital, which is why the entire political establishment is often referred to as, 'the uniparty.'
The "father of our capitalist ruling class" was a socialist. How does that work?
Nobody can explain complex issues as well and as honestly as Dr. Wolff. Nobody.
Congratulations to Wolff, he actually got this on exactly right, and his analysis was spot on.
The truth is that tariff taxes protect the inefficient at the expense of everybody else. The financial losses of the majority ALWAYS far exceed the financial gains of the protected minority. Free trade benefits all nations always.
Did he say that the Americans would be willing to have the same hourly labour rate as workers in China?
Amazing lecture as always professor 😊
Thank you for your info about Tariffs
Thanks professor
BRILLIANT EXPLANATION OF THE BENEFITS AND HAZARDS OF TARIFFS. I WISH EVERYONE COULD HAVE KNOWLEDGE OF THIS WORD, TARIFFS.
As always, great video, Prof. I benefitted immensely. 👍🏽👍🏻👍
This was very clear. Thanks, Professor!
Well done Prof Wolf. Good analysis. 👏🌹💯🇺🇸
I'm American by citizenship, I will simplify to one word "superiority complex", I must admit for the longest time they were superior, they used that superiority on good also bad purpose in the name of national interst meaning we win you lose selfish interest!
Many countries see through the bad side now and seek alternative to so-called US leadership in the world! My government will keep pursuing same policy until our society devolved in to a state of despair, we are on our way, then people will rise up and call for changes, not happening any time soon, may be 10-20 years from now! By then I may be living outside of US😢😢😢
Not only that you have no respect for wisdom, you thing everyone is slave and the money everything, this way of thinking will destroy you.
Excellent excellent presentation
Thank you, professor!
Love you
Dear Dr wolf ❤
Take care Dr. Wolff
Thank you very much Professor Wolff. You explained it so well that everybody can understand it.
Thank u
Thanks for your enlightenment.
Professor, you should hook up with Scott Ritter, Colonel Douglas McGregor, Judge Napolitano, Gerald Celente - Trends Journal and this YT show, Daniel Davis -Deep Dive. They have a great Project, Waging Peace in a nut shell. I highly recommend them as allies for the cause of changing the world from a war based hell pit back to a real life normal.
Clear and interesting.
循循善誘，諄諄教誨；令人尊敬的學者 !!
Please have a discussion on the current status of the US housing market and its overpriced homes. Will it lead to another 2007/2008 housing bubble collapse? Are the prices starting to fall? Is there an increase in the number of vacant houses and apartments?
Yes, this would be very interesting.
It's not like the American consumer can do something about it, Biden or Trump either one will slap tariffs anyway.
By denying cheaper Chinese made products, this time it's EV, and then DJI drones etc .. industry who use them have to buy American made ones at a higher price, and raise their operating costs and pass the cost on to consumers..
Wonderful news
Thanks!
Tariffs also make industries less competitive in the world market
The US auto industry is the classic example; I really don't see American brand autos anywhere else other than the US.
@@MMLL369 You do see them in the movies and games
Spot on
Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank
Thank you for informing us of valuable information
Great content!
Thanks
Wolff in this episode did not say the US tariffs on affordable imported goods are the main cause of inflation especially for low-income already suffering ordinary Americans or the so-called 99%
It makes sense that tariffs increase inflation, but to say they're the main cause of inflation is a pretty bold claim, especially when you consider that corporations set prices at the maximum level they can get away with. You'd really have to provide a lot of evidence to support your position.
beautiful video mr. Wolff, very simple to understand for the layman. more like these please.
And the American People Pay for the Tariffs: it’s the Consumer Price going up and we the people Have to pay more to get less:
The foreign producers Don’t pay the tariffs: people here pay the tariffs
It’s that simple
American manufactures need stiff competition to keep their vehicles up to par. We need to let China sell their EVs here in the US without the tariffs and force our automakers to drop the price of their cars to compete.
The fact that US manufacturers need a 100% tariff means they've pretty thoroughly lost, they can't even pretend to compete. Without this tariff US production of EVs (and probably other cars) would just collapse.
one question prof.
Why is it that an engineer required a degree, master or PHD to apply for an engineer job. Whereas the HIGHEST POST in the country is the president post which do need any proper education to apply for it. Tom, Dick and Harry can apply for that post ? Why is that ?
A good example is the Ukraine president whose job was a comedian and now he is the president of Ukraine !!!
That’s why the democratic west is declining & a good example is an economic adviser of one of an ex-POTUS couldn’t explain why US government has to borrow money when they can simply print more money.
That is why China is wining, they have engineers as political leaders.
China couldn't compete with ICE so they focused in NEV and it's not as if they kept it a secret. They have products that benefit the world that create less noise and air pollution and can easily be adopted through competitive pricing. Instead of tariffing maybe we should ask what will be the technology that supersedes EVs.
Smart Chinese,no wonder their I Q ranks 5,American ranks 29😂
Thank you Prof 🙏🏽
Prof Woolf NEVER fails to amaze with fantastic, descriptive analysis on tariffs! 🩵🩵🩵
The demand for EVs has been going down in the US, because they are too expensive. Auto manufacturers are building expensive SUVs, trucks, and EVs. At the same time, they stopped producing inexpensive IC sedans, because those are less profitable to produce.
As a result, the average person cannot afford to buy inexpensive vehicles. That is what you call monopoly.
China has EV manufacturers in many countries, and even in Mexico. But China rather selling the cheap China EV to help Latin America grows than trying to bring EV to US market.
Or none of China EVs made for US. IOW, American can drive to Mexico to buy cheap China BYD EV to bring back to US. But they can't drive in US, because they are not made for US.
@@fairryalp.-de5qb BYD's plant in Mexico got cancelled. Never the less, BYD has a car plant in Brazil.
thankx
Please run for president Dr Wolff
Thank you , Professor Richard Wolff. Thank you for your education, thinking outside of the box at our elite colleges, and allowing all of us to grow with you.
What is Interpellation? French Philosopher, Louis Althusser: Marxism/Literary Theory/ Ideology.
Althusser's "Lenin's Philosophy & Other Essays"
He has always been in a box...it's called Marxism, and it continues to fail.
Tariff protects the wealthy .
Big lie. Tariff taxes protect the inefficient, not the wealthy!
Tariffs protect middle class Americans from Chinese slave wages. Why do you think the globalist/zillionaire class hates them so much?
No, tariffs are a tool for raising prices and protecting the rights of stealing from the population under a plausible pretext.
Beautifully explained, as usual
Love it when he says "uncle Sam" 😂
Tariffs on strategic commodities seem like a perfect tool for national industrial security, particularly if strategic interests are publicly owned
Tariffs on commercial products seem like mafia protection
Price is Politics. Not real Prices. In China EV Cost 10.000. in EU 30.000 . 20.000 Tariffs and Taxes.
thank you, economy professor.😀😀😀 looks like the dominance of others mixes into the economy and hurts our own people.
Miss you Dr Wolff
Don't ever stop prof wolff!
Tnank you for telling us suck insight!!
good.
We don't make much anything exported, so competition is not affected, only domestic inflation increases.
4:00 you also got to include shipping cost as well, most $10 dollar wines are 750ML bottles witch weigh about 2.5 pounds, USPS charges $22.90 for (not over) 3lbs so it'd be 10 plus 2, plus 22.90 so $34.90 for the shop owner to buy that wine, now realistically he would buy in bulk like a pack of 12 would be $100 to make the math easier, and the shop owner saves 20 bucks, but that 20% tariff would effectively make him pay full price, so $120, 2.5LBS times 12 bottles is 30 lbs not over 30 is $107.7 5USPS (UPS is 35.55 EUROS $38.11as of this comment) so for sake of saving money like any capitalist would he would use UPS so $120+38.11 is $158.11 dived by 12 because that's how many bottles he has to sell so it's 13.175833333 or $13.18 witch by nature of the math 13.18*12 is $158.16 but I imagine he'd want more than a 5 cent profit, sell the all at $14*12 is $168, so a 9.89 dollar profit so selling them for 15 like you suggest 4:30 he would get $180-$158.11 is $21.89 in profit selling them for $20 each would get him $240-$158.11 would get him $81.89 in profit,
(sarcasms coming up) witch we all know he will evenly distribute to the hard working employees that deal with costumers that want to get drunk all day, say the store is open from 10 to 10 closed on Sunday openers come in at 8, and closers leave at 12, so 2 8 hours shifts a day, 16h*6d 96 hours that need to be filled with at least two employees each shit, maybe 2 full timers and 2 part times each day, 1 manager and the owner, really small liquor store here 96/40 is 2.4, so if you had 4 full timers 2 that took turns opening and 2 closing that's over time, unless you mange 4 part timers that could fill out break times for the full timers to avoid needing to pay over time, but the point is that's 8 employees, now in real life no small store has that many, but I'm talking a magical healthy store that really values it's employees 8+1 manager +the owner so 10 employees so each worker totally makes 8.189 or $8.19 from that case being sold. oh wait we live under capitalism not socialism my bad, it's almost like the workers keeping their share of generated profit might be a good idea
Most trucks carry over 20 tonnes of goods for as little as $1.50 per mile.
Ups are robbing you!
thank you very much
They oughta put a tariff on war.
I really wish the Chinese electric car cost $30k to make, it retails landed for around $10K! It is better made with better technology than the American counterpart, that cost in some cases over $100K. We are either highly inefficient or extremely GREEDY! Either way the United Stated needs to adapt or die. As always, Dr. Wolff is amazing.
“better made” false
you are extremely greedy, insuluting the inventor of the algorithm bullshiter only a bullshiter can do it, or to go to the religion as you wrote me 'Read Kuran' after stealing my invention, now I tell you read your regligious book and insult you as well. There is no other language the bullshiter understands, he is psychopath.
Tariff protection a small group of business and hurt the consumers. The business will never eat that tariff, it will pass directly to customers.
Trump is nuts. Tarriffs instead of income taxes? We might wish to keep all the income we earn, but we just cannot provide all the protections and services the government must provide without some source of revenue coming in.
Trump has floated the idea to replace one tax, income tax, with a tarriff on imported goods. But tarriffs are regressive taxes. That means it's harder for lower and middle wage workers to pay the increased prices for imported goods. Think about it.
Almost all electronics are produced outside the United States. Most car parts for American cars are produced abroad too. Produce and meat are imported too. Everything is globalized now and prices are gonna go up for everything. Need furniture? Most of the less expensive furniture sold in America is now made in China..Ikea goods comes from abroad too!
Meanwhile, the wealthy will save an enormous amount on corporate and personal income taxes. That's what a regressive tax means.
You won't be keeping more money but you would be told you were saving all of those income taxes. It's propaganda for the gullible.
In summary, All industries and general consumers are hurt badly to protect a small group of workers' job who has not been doing their job efficiently. Therefore, tariff works only for those expensive consumable items such as wine but not on tools, transport equipment, communication equipment and etc.
Knock, knock... Anybody home inside that head?🙃
SIR, please explain inflation, deflation etc and its advantage/ disadvantage in your lucid way
The right thing to do would've been to do what mexico did, instead of tariffs, the US gov should invite chinese companies to build factories in the US and hire US workers
One US politician had recently advocated for that but he also added that the US can then steal Chinese EV manufacturers’ Intellectual Properties 😂.
Thank you for your comments. I agree with you. May I suggest that protectionism thru tariffs results in protected industry not working on efficiency and innovation in order to reduce cost.
If the cost of the product is high,consumers cut back from other spending.
Thank you , for this great explanation and analysis about how tariffs works. It certainly refreshing from the demagogic rhetoric we've been hearing from capitalist politicians like Biden and Trump.
You have simplified it...
One of Tesla’s biggest factory is definitely in Shanghai China
Mr. Wolfe, do you believe the tariffs were possibly imposed to slow the transition to EV's because it would severely reduce the amount of fuel sold in America, which would cause a decline in the worth of our dollar since it's backed by petrol? Especially since now Saudi Arabia did not renew the deal to trade oil only for American dollars.
Tariffs pritect only certain industr8es. The rest of the country suffers from the higher prices. People understand this?
Well said! but Biden's hope is that most American voter will realize your first sentence, but not the second.
Tariffs and retaliation by targeted country also mean sustained period of inflation and establishment of multiple supply chains to bypass tariffs (which is also inflationary). Inflation is an ally of the FED and raison d’être for higher rates (meaning a strong USD, which US Capitalists use to acquire overseas assets, businesses etc, which again will destroy American jobs). Not surprisingly, most American blue collar workers have seen their quality of life being eroded over the past 20 years vis-a-vis Chinese peers who have quadrupled their wealth in the same period. Richard is correct to attribute the blame for American blue collar stagnation on the capitalists. 👍
Are you sure yellan is as smart as you think? A smart person would say blackmail in the end isnt profitable and is illegal, but her price is probably a villa in florence while the US people sink into poverty snd debt
Thanks. I have a question. Do the United States war colleges and military academies offer coursework in accounting, and if not, shouldn't they ought to teach accounting skills for the future brass to handle trillion dollar budgets?
Why stop at the military brass? That ought to be a requirement for every member of Congress.
There won't be trillion-dollar budgets much longer, I wouldn't worry about it.
Why would they need to know accounting and budgeting when the money for wars is always limitless.
Bad politicians is indirectly taxing its own consumers. Protectionism benefits no one
I can not believe that Dr. Wolff would not tell the full story. TARIFFS ARE NOT PAID BY CONSUMERS. If tax is not collected on imports, consumers pay the money spent by the government somewhere else. WHERE BETTER TO PAY TAX, ON IMPORTS OR ON WAGES ?? TAX ON WAGES ADDS TO THE COSTS OF PRODUCTION. SINCE WE STOPPED CHARGING TARIFFS OUR COUNTRIES" ECONOMIES HAVE SUFFERED. In Canada especially our manufacturing sector has almost disappeared. What we need, our countries can produce. What we have surplus we can export to those countries that need it, irrespective of tariffs. Tariffs must be placed on all imports.
Do be aware that others can give you a taste of your own medicine
The American car manufacturer *is* equally or even more efficient, but they are required to let their workers keep more of the surplus.
Free trade just forces wage competition in a race to the bottom.
Enjoy your delusions
Some may be questioning if globalization is good or bad for the US.
Take a look at Apple - the largest and most successful company on earth. If you're holding an iPhone or iPad or any other Apple products, look at the back, it says "Designed by Apple in California Assembled in China". So how does Apple dominate the world? By doing manufacturing in China. Steve Jobs understood well if he produced in the US, the prices would had been too expensive to compete globally.
In my country, for example, "Made in USA" products (except software) have no market at all, they're just too expensive compared to other alternatives with equivalent specifications. GM and Ford had tried hard to stay but eventually pulled out too several years ago.
So I guess this recently "Made in USA" fuss is more of a domestic matter - it has no effect in the global markets.
If the primary rationale for tariffs is, in fact, to protect jobs, then none other than Tesla itself has emphatically put the lie to that notion. That’s right, one of the very companies (if not THE company) that should directly benefit from “protective” tariffs have been shedding jobs left and right (no pun intended). First they said it would be 6,300 jobs in California, Austin and Buffalo. Then in April that number increased to 14,000, or fully 10% of its workforce. Finally, another 600 in California announced in May. So much for protecting American jobs!!
Looking at the other comments, apparently nobody else noticed, which doesn’t surprise me. Then again Dr. Wolff didn’t mention it either, and therefore missed a chance to significantly bolsters his argument…..
Tariffs are taxes. We could have $ 11 000 Chinese electric cars but our mfr cant compete so they get 100% tariffs
Sorry Professor Wolff for missing the live show I was looking forward to being part of the Live show .
Richard, are we number one comsumer, today people buy less than before
I think Dr Wolf is taking freedom of speech too seriously. Be careful my brave professor!
Reduce the main reason for the over inflated prices to begin with. Bring down all of the over inflated salaries of every single executive in every corporation in the US. That will lower prices almost instantaneously.
I wonder why the American manufacturers of electric vehicles can't/or won't update their cars to be more comparable in price to China's cars. Why did they choose to manipulate the market through tariffs instead of producing more comparably priced vehicles?
Because American auto workers want more than $2 to $3/hour wages. (I know, how dare they, right?)
@@CarlGerhardt1 Your snarky "answer" is not appreciated.
@@CarlGerhardt1even with wages of $20/H it's not good enough to live in USA, due to the greed of the industrialist to make a bigger profit off each piece produced. This is what pushes the prices up of everything, eventually. For istance:when i worked as a barista in a restaurant 30 years ago, my wages was 170 £ a week plus lunch and dinner included, and my rent of a double bedroom inclusive of all bills, was £20. I would have £150 left over. That's is 7 times my rent. Now a day, for a double bedroom inclusive of bills costs £175 a week, for a barista in a restaurant wouldn't get more than £400 a week! That means after paying rent, there is Only £225. The rent is almost half of the wages now a day. 😢That's the greedy house market.
Why make an effort to stand when one can just lay on the beach making the same profit? That's what the executive management of US auto industry are like.
Where is my comment? It disappeared, i wonder why! I only pointed out that 30 years ago a barista working in a restaurant earning £170 pw, would be able to pay rent +bills and have £150 left. Now you get paid £400 and the rent +bills is £175. That's half of your income gone! Leaving less spending or savings.
Fisker, an EV start up in USA just applied for bankruptcy. So much for tariff protecting jobs.
Why can't we have import tax only?
In the end the company , product or country that's less competitive will lose . .
Would love to ask him when he thinks tariffs can be successfully implemented to forster purchasing of domestically produced goods
If we impose tariffs, other nations will too.
Austerity measures refer to policies implemented by governments aimed at reducing public sector debt by limiting public spending, increasing taxes, or a combination of both. These measures are typically adopted in response to a fiscal crisis or high levels of national debt and are intended to restore fiscal discipline and stabilize the economy. Common components of austerity measures include:
1. **Cuts in Public Spending:** Reducing expenditure on public services, social welfare programs, public sector wages, and infrastructure projects.
2. **Tax Increases:** Raising taxes on individuals and businesses to increase government revenue.
3. **Structural Reforms:** Implementing changes to improve efficiency and reduce costs in the public sector, such as pension reforms, labor market deregulation, and privatization of state-owned enterprises.
Austerity measures are often controversial because, while they aim to reduce debt and restore economic stability, they can also lead to short-term economic contraction, higher unemployment, and social unrest due to the reduction in government services and support.
Biden is textbook… too bad the playing field is multi polar.
Mexican can buy value for money goods
If the product is lousy workers won't get protected.
The customer always loses from having to pay more.