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31 sats \ 13 replies \ @7e6e393a56 29 Oct \ on: Do People Actually Believe the Election Result will Result in Positive Change based
Economic policy is no different at all. We have had Democrats and Republicans alternating in power over these years and the United States budget deficit has risen to 6.4% of GDP in 2024, and the United States public debt is currently close to US$34.62 trillion. Regarding foreign policy, as incredible as it may seem, sometimes Democrats have sharper claws than Republicans, being more aggressive and protectionist. I believe that something will be done in the economic part, better realigning its former economic allies, recruiting others and threatening some, because of the BRICS.
Tax policies are different.
Kamala wants to raise capital gains tax and corporate tax. She wants to tax unrealized capital gains for high net worth individuals.
Trump wants to cut corporate tax and income tax.
Tariffs: 10 to 20 percent on imports.
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Tariffs are a tax on consumers and a subsidy for producers.
They distort market signals and result inevitably in misallocation of resources.
Tariffs are admission of defeat and only delay the inevitable.
They are not a solution.
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tariffs create deadweight loss but also create incentive to onshore.
consumers do not pay more for local goods. that's the whole point.
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Consumers are left with distorted price signals- not a free market.
Inefficiently domestic production is continued when in a free market it would cease and the capital and labour it uses would be reallocated to a more efficient purpose.
Tariffs are explicit admissions of failure to maintain a competitive economy.
Consumers pay more than they would because they are denied access to more efficiently produced lower priced imports.
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Can you explain with a real world example?
What is a popular consumer product that has tariffs?
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I don't need to - the theory applies to all tariffs equally.
Trump is proposing tariffs as if they are some magic fix whereas they are in truth market rigging and taxation of more efficient offshore manufacturers and producers to protect less efficient more expensive domestic manufacturers and producers.
They all impose less choice and higher prices on consumers by protecting inefficient domestic producers who cannot compete in a free and competitive market.
I have already given an example in a previous comment- Musks Tesla EVs vs Chinese EVs.
Americans will pay higher prices for EVs to protect Teslas domestic market share because Tesla is not as efficient a producer than the Chinese manufacturers....that's in addition to the billions Tesla already receives in EV subsidies.
Musk is a rentseeking parasite attaching himself to sugar daddy protectionist market rigger, Donald Trump.
Crony capitalism writ large.
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Which Chinese EV models?
10 to 20 percent tariff is mild and reasonable?
Have you seen tariffs on steal? 400 percent or 400%
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Why is any tariff reasonable?
They ALL obstruct free trade and protect inefficient capital allocation and impose higher costs on the host nation, its consumers and businesses.
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Tax cuts for the rich and higher priced consumer goods for everyone else due to tariffs.
Voting for Trump must be a no brainer?
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