i'm trying to understand ... how does this editorial cartoon even make sense? why is the cannon ball landing in the middle of America? why isn't the Chinese dragon running for cover? i don't get it...
who pays a tariff?
the importer - the person who receives the goods from the exporter - in this case, China is the exporter and the American is the importer
so ... if the importer pays the tariff, how does the importer recover the expense of the tariff?
the importer incorporates the added expense into the end consumer's price
so ... if the added cost from the tariff is added on to the end consumer's price, where does that extra money come from?
everyday American consumers
so ... China doesn't pay the 145% tariff on all imported goods to the FSA, we pay it?!?
yep, you and me
how does that lower prices?!? isn't that just forcing me to pay a national sales tax?!?
yes. does it make sense to you now?
just sayin'
It all just makes my head hurt so I've given up on trying to make sense of the tariffs and how they work.
ReplyDeleteThe bigger question is how will any other country ever trust us on trade or any other agreement or treaty now or in the future, when we violate each and every one?
ReplyDeleteI truly do not understand why - it seems - so many Americans do not understand this basic concept.
ReplyDeleteIt simply doesn't make sense unless you want to induce panic in the stock market so your so-called buddies can make a killing and decimate our 401(k)s.
ReplyDelete