20% Tax on Items from Mexico to pay for wall...

[KEW]

May this not disturb your spirit or rattle your soul, but ...

What an outstanding lead in!!!

 

[KEW]

Trump's positions are all about ego

Trump may not fully understand that the leaders of many countries have such absolute power (lack of real accountability to their people) that their egos will probably overshadow his.
We have seen many times where foreign countries have been willing to sacrifice the welfare of their people rather than be publicly humiliated. I hope I am wrong, but I don't see Trump's negotiating tactics resulting in much good. I know I wouldn't want to "be his be-otch"!

 

[Chu Gai]

Well, our GDP is pretty mediocre at something under 2% while China is freaking out with their GDP at a little under 7%. What to do?

 

[j_garcia]

20% tax on Canadian maple syrup!!

What about those car plants up in Canada? Funny how he has said squat about them. No, I am not picking on Canada either.

 

[Chu Gai]

Trump is a buffoon. Negotiation tactics? He's dealing with presidents of foreign nations, not the teamsters or some NY real estate shyster. This is going to backfire into all of our faces (taxpayers will be on the hook for the wall, tariffs will penalize the poor consumers the hardest, this is just sheer stupid unleashed).

It might or maybe it will do just the opposite. The world is full of experts who will convincingly argue each extreme. As for dealing with presidents, it seems disingenuous to lump them into a common pool. Just looking at Mexico, Nieto doesn't seem to be into it just for the good of the country. I seem to recall some scandals involving his wife.

 

[Chu Gai]

20% tax on Canadian maple syrup!!

What about those car plants up in Canada? Funny how he has said squat about them. No, I am not picking on Canada either.

Vermont maple syrup isn't too bad. Or NY and Washington. Back when I was a kid, my father would tap trees and also make his own. In the end was cheaper to buy it by the gallon.

 

[j_garcia]

Yeah, basically same tress and environment. I couldn't tell maple from Michigan from Canadian (don't tell the Canadians).

 

[Chu Gai]

Yeah, basically same tress and environment. I couldn't tell maple from Michigan from Canadian (don't tell the Canadians).

There's a tendency to say, 'eh', when using the Canadian.

 

[shadyJ]

As a business man, Trump knows this strategy well. He wrote about it in his book years ago.

It might be a stretch to say he wrote that in his book...

 

[KEW]

Well, our GDP is pretty mediocre at something under 2% while China is freaking out with their GDP at a little under 7%. What to do?

No, that is the growth of the GDP, not the GDP.

China is freaking out because they have been growing tremendously as you might imagine.
In 2013, the US GDP per capita was $53,000 and the China GDP per capita was $6,800. It doesn't take a rocket scientist to understand that without effective barriers to trade between these two countries, the GDP of China will rise more quickly than that of the US.

As I said before, I don't believe we should have such open trade between our economies, but any changes need to be done in a gradual, controlled, and consistent way so companies (and the other countries) can work strategies to best adapt. Sudden changes in laws is the kind of thing that keep so many third world countries in the third world. A government needs to provide stability so business can plan with assurance that they will not get torpedoed whenever a new administration gains power. The image Trump portrays is one of a guy who will change the law in response to butting heads with someone like Putin. We don't need a president to be "nimble" in that sense!

 

[lsiberian]

He is clearly not a politician. His speech is sometimes bumbling and anything but polished and politically correct. But I think his actions and direction will result in benefits to us all. We'll see.

He's been a politician his entire life. Don't let the game fool you. You don't build towers and golf courses in New York City without being a politician.

 

[Chu Gai]

No, that is the growth of the GDP, not the GDP.

China is freaking out because they have been growing tremendously as you might imagine.
In 2013, the US GDP per capita was $53,000 and the China GDP per capita was $6,800. It doesn't take a rocket scientist to understand that without effective barriers to trade between these two countries, the GDP of China will rise more quickly than that of the US.

As I said before, I don't believe we should have such open trade between our economies, but any changes need to be done in a gradual, controlled, and consistent way so companies (and the other countries) can work strategies to best adapt. Sudden changes in laws is the kind of thing that keep so many third world countries in the third world. A government needs to provide stability so business can plan with assurance that they will not get torpedoed whenever a new administration gains power. The image Trump portrays is one of a guy who will change the law in response to butting heads with someone like Putin. We don't need a president to be "nimble" in that sense!

I know it's growth. Still, sub 2% growth doesn't seem adequate to improve purchasing power or get more people into the workforce.

 

[j_garcia]

He's been a politician his entire life. Don't let the game fool you. You don't build towers and golf courses in New York City without being a politician.

Yes BS applies equally to his previous experience but now he is affecting a country, not just his own bottom line. Can't just say and do whatever he wants to.

 

[KEW]

I know it's growth. Still, sub 2% growth doesn't seem adequate to improve purchasing power or get more people into the workforce.

The reason I felt the need to correct is it would indeed be significant if China had 3.5 times the GDP of the US as someone might infer from your post.
They are catching up, but our GDP is still the largest in the world at about 22% of the global GDP. Given that China has over 4 times the population of the US I don't feel like this is a crisis of the magnitude it is often portrayed as.
Certainly, we could go back to earlier years and see where China had more rapid growth. They have actually started slowing by significant amounts as the gap between us has decreased.

 

[Swerd]

He's been a politician his entire life. Don't let the game fool you. You don't build towers and golf courses in New York City without being a politician.

He's played power games with politicians before. But he's never been on the receiving end of public opinion, good or bad, before.

His main tactic is using chaos and drama to divert attention from what he really intends to do, the Dead Cat tactic. Now that he's in the White House, he has so many assistants to throw Dead Cats for him, it's driven up the price of Chow Main in China Town restaurants throughout the country.

Some of his Dead Cats appear to be classic political trial balloons. If they get a strong negative reaction, a day or two later, he pulls back or denies he ever said it. Examples are the 20% import tax, or the use of waterboard torture interrogations.

 

[highfigh]

Vermont maple syrup isn't too bad. Or NY and Washington. Back when I was a kid, my father would tap trees and also make his own. In the end was cheaper to buy it by the gallon.

There had to be some satisfaction that came from making it for himself, though. I know someone who does this and makes it an event with his kids and grandkids- I don't know his yield, but after talking with him about it, I went out and bought some syrup that was made near Milwaukee and it was far better than anything I remember- much more mild flavor and not as disgustingly sweet. The maker has also partnered with a local brewery to make a maple soda and I know the owner of the brewery, so I bought some. That was great, too.

 

[killdozzer]

It STARTS with people wanting everything cheaper. In order for companies to continue to increase revenue, they have to manufacture cheaper. Vicious circle, but it does not start with the companies.

As vicious as it may be, it NEVER starts with people. Most of the strategies for profit increase are older than all the justifications for profit increase. The idea of outsourcing predates cheap China manufacturing. What you write begins to depict you as somewhat of a politician or a businessman, it says; you the buyers, you common people are to blame for everything we do. You're complicit.

It is this simple:
You can make a 100$ in US, all fine.
You can make 200$ in Philippines, but you'll have a riot on your hands for closing plants in US.
You can make 150$ in Philippines, use the 50$ buffer to lower retail prices, convince people they're complicit since they're buying it and you're just answering their needs/desires (which you, in fact, first created) and avoid mass riots by administering guilt.

Common, guess which one is operational today?

 

[killdozzer]

I think you're incorrect. It is about competitiveness. If you do not take advantage of lowest cost development and production alternatives you will be challenged to be as effective as your competition. Gross margins also translate into the funds available for R&D and modernizing production facilities. In competitive markets greed is not a factor. Don't confuse what is happening in the pharmaceutical industry with the automakers. High cost producers tend to go out of business. Trump's positions are all about ego, an obsolete view of the US economy, and pleasing the voter base that he thinks got him elected.

I think you're wrong. Watching it from a distance I can not be but amazed. You really DO have the category of untouchable and unthinkable. You act as if you're looking for solutions, but the only solutions you will hear/see are those that do not touch the 'holly mode of production'. You seem to know and understand everything when it comes to snake oil cables, but, almost as if there's a switch it all disappears when it comes to US economy.

Lowest costs are not a given. You can set them. You can ask your politicians to set them (oh yes, you can't touch the "free" market or invoke the dreadful "nanny" state).

Profit use to translate into funds for R&D before you outsourced all you have to India and China.

So, you think it's competitive markets. I can finally rest at ease knowing Audio Quest will be out of business tomorrow.

And since greed is not a factor, they must be busy translating all that gross margins into R&D funds back at AQ.

My friend, it is not me that is confusing anything. If you truly believe there's a solid justification for 'high cost producers going out of business', if you truly can not envision any other version of your country or the future, the battle is over and you lost. The only thing you can imagine is a poor producer who, if he dares ask for higher standard of living, the oversensitive mode of production will pack her suitcases and leave. The poor producer will learn his lesson - the mode of production will love you if you're willing to stay poor and keep your mouth shut.

AND NOW let the changes begin, let's make a better world. Yes we can (if we accept poverty)!!

You all shouldn't keep asking how Trump happened. There's not a thing about your view of economy that man might honestly hate.

 

[killdozzer]

People, people, people…

I don't give a damn whether I'm right or wrong. You got me all wrong. I couldn’t care less for Trump, economy, planet or anything. I'm not here to engage in endless assumptions and forecasts on how will a certain tax reflect on a given household.

I expected you to administer the same sane and logical thinking you obviously possess when it comes to electronics and apply that to other aspects of your life.

You’re all quoting the “explanations”, “arguments”, “statistics” and “holy excel spread sheets” straight out of the mouth of the 1% or whatever you want to call them (who ever you're angry at is the author of all your reasoning). They are not concerned with you. They are not your guardian angles with higher knowledge of economy that are all watchful not to let you mess up or do something that might degrade the quality of your life.

I can’t believe my eyes. You still think companies are worried with what you want and only think how to provide for you.

You even accept the blame; oooh, but they had to move the production, it’s me to blame ‘cause I wanted it cheap. I must have had them cornered with no escaping route but the through Philippines or China. Boy was I mean to the economy. I was so foolish…

For COL (can we please have this abbreviation? it’s like LOL but with crying) wake the F… up! Why would you think that explanations entirely made and offered and put in place by the very same people you’re angry at are YOUR explanations???

You’re fighting (and dying in) their battle and it brakes one’s heart to see you even call it your battle.



STOP focusing on a single tree and start asking what makes a forest. Deep in the underlying layers of all you’re debating there’s a rather simple governing idea that you all accepted and this is why you’re not able to express a truly horrific, threatening and subversive idea to the ones who make your life worse.

The underlying idea is that economy gives birth to politics. Get rid of this notion, it is debilitating and restraining.

FIRE YOUR ECONOMISTS!

It is YOU THE PEOPLE!! You are the power behind politics. Economists can either do what you ask them or find another job (preferably nowhere near high finance).

When you miss a couple of days at work your employer is not asking for arguments, explanations or holy excel spread sheets. YOU’RE fired.

Well!?!? When will you remember that you’re the employers of your economists? Fire the pricks!

You want domestic production and a good standard of living. TELL your economists to GO AND GET IT! And if they can’t, then the economy might not be the line of work they’re cut out for. They can either go home and do their f….. homework or they can move out of the way and let someone capable do it. You DON’T need empty explanations! Everyone could do their job perfectly if he gets to both describe what the job is and write his own reviews. F... that! "I pay you to make my life better and I want domestic production!!! Can you do it? A simple yes or no should suffice!"



Now tell me, do you still think it is ME you need to correct!?

 

[Rickster71]

The reason I felt the need to correct is it would indeed be significant if China had 3.5 times the GDP of the US as someone might infer from your post.
They are catching up, but our GDP is still the largest in the world at about 22% of the global GDP. Given that China has over 4 times the population of the US I don't feel like this is a crisis of the magnitude it is often portrayed as.
Certainly, we could go back to earlier years and see where China had more rapid growth. They have actually started slowing by significant amounts as the gap between us has decreased.

Here's an interesting Bloomberg article on that subject for those interested:
https://www.bloomberg.com/graphics/2016-us-vs-china-economy/