(11-25-2024, 05:21 PM)jagibelieve Wrote: So if a company such as Walmart normally pays $10 for a widget made in China (or any other foreign country) vs. a widget made for $15 here in the U.S.A and a 100% tariff is imposed on foreign made widgets, which one would Walmart purchase to sell?

The US made one which its manufacturer is prepared to sell to Wal*Mart for $19.50. (Hey, those import tariffs have increased the cost of imported raw materials and parts - right?)

Quote:That's the idea of tariffs. A company isn't going to buy the same widget for twice the price ($20) to sell and pass that cost onto consumers, they are going to buy the less expensive one ($15) made in the U.S.A, advertise that it's made in the U.S.A and sell the widget that might cost a consumer a little bit more than the Chinese made widget.

Exactly, and when the US suppliers see that Wal*Mart can't buy a substitute for their product for less than $20.00 they are going to do the "smart" thing and raise their prices.

Mind you, even if they didn't, then Wal*Mart is now going to be selling the *A*M*E*R*I*C*A*N* widget for $15.00 PLUS its usual markup (you would be REALLY surprised at what that markup actually is, but it averages at around 100%) $30,00 as opposed to the old *F*O*R*E*I*G*N* widget that it was selling for $20.00.

Now, here is a question that has puzzled full-time students of economics for hundreds of years and here is your opportunity to resolve the issue once and for all

IF "Item A" was selling for $X and is now selling for $2X, has the selling price of "Item X:


1. gone down;
2.  stayed the same; or
3. gone up?

[PICK ONE ONLY]

Quote:Yes, prices might rise just a bit, but that extra cost supports companies/business in the U.S. and in turn supports good paying jobs in the U.S.

Quite right, and you appear to have come across the perfect solution to the US economic woes. Why not simply double the price of everything and watch the economy boom due to all the new money being created through the expansion of businesses?

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