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Thread: Criticism of Trumponomics Intensifies

  1. #121
    JP226's Avatar Dux Limitis
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    Default Re: Criticism of Trumponomics Intensifies

    What Suckiyama is operating under here is this notion that markets are perfectly balanced currently. Or that there is some sort of preexisting perfection on price points that are position under a pretense that things like misinformation, bad agreements, arrogance etc etc don't already rupture. He somehow thinks if you include a tariff, it's a black and white increase in price points that the markets otherwise wouldn't naturally recognize under his limited understanding of competitive or perfectly competitive markets. He's wrong on all accounts. What he can't fathom is that throwing in a tariff, threatening a tariff, executing a tariff leads to better market outcomes, new negotiations, repositioning and questioning the current state of affairs. His argument is way too simplistic for the facts on the ground.
    Sure I've been called a xenophobe, but the truth is Im not. I honestly feel that America is the best country and all other countries aren't as good. That used to be called patriotism.

  2. #122

    Default Re: Criticism of Trumponomics Intensifies

    Quote Originally Posted by JP226 View Post
    What Suckiyama is operating under here is this notion that markets are perfectly balanced currently.
    Whether a market is perfectly competitive is irrelevant. It would matter if we were discussing different matters of the market such as, aforementioned, pricing, but we are not. This is similar in function to any form of taxation, where taxation produces increased costs for the consumer, and it doesn't matter whether that market is competitive or not. Taxes raise prices, in that same manner, tariffs produce losses. This is not really negotiable.

    Or that there is some sort of preexisting perfection on price points that are position under a pretense that things like misinformation, bad agreements, arrogance etc etc don't already rupture. He somehow thinks if you include a tariff, it's a black and white increase in price points that the markets otherwise wouldn't naturally recognize under his limited understanding of competitive or perfectly competitive markets. He's wrong on all accounts. What he can't fathom is that throwing in a tariff, threatening a tariff, executing a tariff leads to better market outcomes, new negotiations, repositioning and questioning the current state of affairs. His argument is way too simplistic for the facts on the ground.
    This isn't about price points. This is about tariffs causing inefficiency in the market leading to a loss in value which is acquired by nobody. I also never denied that tariffs can lead to better market conditions, merely that a tariff will cause short term losses. A tariff can force new supply chains to form, develop an industry to a point where it is more competitive in domestic markets than competing firms on the world market. None of this changes the fact that a tariff in the short run, will create losses as the market readjusts. JP226 is incapable of understanding that, because apparently, these basics are too "remedial" for him.

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