@chaski Said 
It is like this >>> China is ripping us off... under cutting our prices (hey... they are a Communist based economy influenced by Capitalism with a goal of taking advantage of the gullible "West".)
> Let's say that China is selling us
wiggets for $100 a unit.
> That is super cheap... way cheeper than U.S. companies can make
wiggets.
> We sell
wiggets for $150 a unit.
> Meanwhile, China is the primary source of the raw materials that
wiggets are made from.
> So to even things out "we" put a tariff on China made
wiggets.
> So China raises the price of
wiggets to $145... and raises their price on the raw materials that
wiggets are made from... and yet China made
wiggets are still cheeper than the USA can made
wiggets.
> American consumers bought
wiggets before, and now continue to buy
wiggets >>> because China made
wiggets are still cheeper than U.S. made
wiggets.
1. Who gets the revenue from the tariffs of
wiggets made in China?
>>> The U.S. Government.
2. So, who actually paid for the tariff... China or the U.S. consumer?
>>> The U.S. consumer.
Tariffs are a hidden tax levied against U.S. citizens.
Note: I fully admit that I way over simplified the situation, but I had to do that to keep it within most people's ability to get the picture.
Ahh - but US CORPORATIONS can now raise the price of Wiggets and blame China, and nudge their unit profit margin up a little more with a higher retail price for the few "Made in USA Wiggets" they do sell.
And the higher prices also mean higher sales tax income for state and local gov'ts.
Isn't that wonderful!
China, Fed, Corporations, State, Local all get a little more nibble of the pie called The American Consumer.
I for one, stick to widgets and avoid those cheap imitation wiggets.
Jan 21, 2020 @ 02:01:07
