SoylentNews

The Cost of Trade Wars on US Economy

posted by janrinok on Thursday January 16 2020, @01:35PM   
from the do-you-want-to-play-a-game? dept.

c0lo writes:

CNN

300,000 jobs lost A report from Moody's Analytics [PDF] says that the trade war with China, which started in early 2018, cost 300,000 jobs through September, based on an economic simulation. While it's hard to know exactly how many jobs losses can be attributed to trade tensions, the Moody's report isn't the only one that suggests the duties are having an effect on US workers. A survey of businesses by staffing firm Challenger, Gray & Christmas found that trade difficulties were cited as the reason for more than 10,000 job cuts in August alone. And an analysis by the Tax Foundation also suggests the trade war will result to job losses in the long-run.

American importers paid an extra $46 billion in tariffs Trump is wrong when he claims that China is paying the tariffs. The cost of the tariff comes directly out of the bank account of an American importer when the good arrives at the port. US companies have paid $46 billion more in tariffs than they would have without Trump's tariffs, according to an analysis of government data by the free-trade coalition called Tariffs Hurt the Heartland...

Tariffs cost US consumers Several studies show that tariffs end up costing US families. JPMorgan Chase said that the tariffs imposed in 2018 cost the average household $600 a year.
A separate report, from researchers at the NY Fed, Princeton, and Columbia University, estimated that those tariffs would cost households even more: $831 annually. Their research also considered the cost of shifting supply chains to avoid paying the tariffs

....

Manufacturing takes a beating Trump has often argued that his tariffs are boosting the American manufacturing sector, but the industry is in a slump. In December, a measure of manufacturing activity weakened to its lowest point in more than a decade. Data from the Bureau of Labor Statistics show that just 46,000 net manufacturing jobs were added in 2019, an increase of less than 0.5%. While there are likely a lot of factors at play, a recent paper from economists at the Federal Reserve showed that the tariffs are certainly dragging down the sector.

---

Original Submission

• CNN? *eye roll* CNN? *eye roll* (Score: 3, Insightful) by EEMac on Thursday January 16 2020, @03:20PM (12 children)

  by EEMac (6423) on Thursday January 16 2020, @03:20PM (#944007)

  Multiple [tradingeconomics.com] sources [forbes.com] report December was fine-to-great for manufacturing jobs. CNN finds a juuuust slightly negative index and reports it as a recession. Great job there.

  Also, be sure to click the link in TFA [cnn.com] to see the hilarious expression on the CNN reporter!

  Starting Score:	1		point
  Moderation		+1
  Insightful=2, Informative=1, Overrated=2, Total=5
  Extra 'Insightful' Modifier		0
  Karma-Bonus Modifier		+1
  Total Score:		3

• Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 2, Interesting) by Anonymous Coward on Thursday January 16 2020, @03:46PM (5 children)

  by Anonymous Coward on Thursday January 16 2020, @03:46PM (#944020)

  Also Democrats criticized Trump for cutting taxes
  And criticize for raising taxes:
  >American importers paid an extra $46 billion in tariff
  And these importers are mostly rich multinationals

  Parent

  • Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Thursday January 16 2020, @04:31PM

    by Anonymous Coward on Thursday January 16 2020, @04:31PM (#944075)

    It's not taxes when Republicans raise them.

    Parent

  • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 5, Insightful) by DeathMonkey on Thursday January 16 2020, @07:58PM (3 children)

    by DeathMonkey (1380) on Thursday January 16 2020, @07:58PM (#944190) Journal

    Also Democrats criticized Trump for cutting taxes
    And criticize for raising taxes:

    Yes, I'm sure this is all very confusing to you. So, let me explain: we want to lower taxes on normal people and raise taxes on huge corporations.

    Trump lowered taxes for the huge corporations and raised taxes on the normal people. Which most people think is a bad thing.

    So, for example, this is a bad thing: Trump Tax Cut Hands $32 Billion Windfall to America’s Top Banks [bloomberg.com]

    Parent

    • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 1, Disagree) by Anonymous Coward on Thursday January 16 2020, @09:33PM (2 children)

      by Anonymous Coward on Thursday January 16 2020, @09:33PM (#944245)

      My taxes are way lower under Trump than Obama.

      Parent

      • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Friday January 17 2020, @03:15AM (1 child)

        by Anonymous Coward on Friday January 17 2020, @03:15AM (#944377)

        Billionaire spotted!! Didn't know that you would bother to mix with us plebes...

        Parent

        • Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Friday January 17 2020, @04:14AM

          by Anonymous Coward on Friday January 17 2020, @04:14AM (#944412)

          Mine dropped substantially as well -- about $8000. I'm no billionaire, not even a millionaire. I barely make it into six figures.

          Parent

• Re:CNN? *eye roll* (Score: 1) by fustakrakich on Thursday January 16 2020, @04:11PM

  by fustakrakich (6150) on Thursday January 16 2020, @04:11PM (#944044) Journal

  My dog! How can anybody listen to that?! I couldn't do 30 seconds. That's a scary dude!

  --
  La politica e i criminali sono la stessa cosa..

  Parent

• Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 4, Informative) by c0lo on Thursday January 16 2020, @11:01PM (4 children)

  by c0lo (156) on Thursday January 16 2020, @11:01PM (#944293) Journal

  Federal Reserve Board, Washington, D.C. - Dec 23, 2019 [federalreserve.gov]

  This paper provides the first comprehensive estimates of the effect of recent tariffs on the U.S. manufacturing sector. A key feature of this analysis is accounting for the different ways that tariffs could affect manufacturers in the presence of global trade and supply chain linkages. On the one hand, U.S. import tariffs may protect some U.S.-based manufacturers from import competition in the domestic market, allowing them to gain market share at the expense of foreign competitors. On the other hand, U.S. tariffs have also been imposed on intermediate inputs, and the associated increase in costs may hurt U.S. manufacturers’ competitiveness in producing for both the export and domestic markets. Moreover, U.S.trade partners have imposed retaliatory tariffs on U.S. exports of certain goods, which could again put U.S. firms at a disadvantage in those markets, relative to their foreign competitors. Disentangling the effects of these three channels and determining which effect dominates is an empirical question of critical importance.
  ...

  4. Conclusions
  We find that the 2018 tariffs are associated with relative reductions in manufacturing employment and relative increases in producer prices. For manufacturing employment, a small boost from the import protection effect of tariffs is more than offset by larger drags from the effects of rising input costs and retaliatory tariffs. For producer prices, the effect of tariffs is mediated solely through rising input costs.

  --
  https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford

  Parent

  • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Friday January 17 2020, @03:06AM (3 children)

    by Anonymous Coward on Friday January 17 2020, @03:06AM (#944374)

    So, you still trust in the federal reserve that has been robbing you and your ancestors for 3 generations? Maybe I should close my shorts...

    Parent

    • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 3, Insightful) by c0lo on Friday January 17 2020, @03:24AM (2 children)

      by c0lo (156) on Friday January 17 2020, @03:24AM (#944382) Journal

      So, you still trust in the federal reserve that has been robbing you and your ancestors for 3 generations?

      I don't know how it could rob me, not me and certainly nor some other 7.5B people in this world are US subjects.

      But to answer you, I trust them more than I trust EEMac or an AC posting on Soylentnews, yes.
      Be it for the simple reasons the authors have their real name put up on TFA, showing they are willing to stand by what they wrote.

      --
      https://www.youtube.com/watch?v=aoFiw2jMy-0 https://soylentnews.org/~MichaelDavidCrawford

      Parent

      • Re:CNN? *eye roll* Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Friday January 17 2020, @06:40AM (1 child)

        by Anonymous Coward on Friday January 17 2020, @06:40AM (#944436)

        I don't know how it could rob me, not me and certainly nor some other 7.5B people in this world are US subjects.

        I see... So there are still more suckers to be had. Please post to SN when you figure it out.

        On second thought, I can't leave it at that. So btw, if you ask will explain it to you plainly in a few sentences.

        Parent

        • Re:CNN? *eye roll* (Score: 0) by Anonymous Coward on Friday January 17 2020, @07:59AM

          by Anonymous Coward on Friday January 17 2020, @07:59AM (#944449)

          took too long. out.

          Parent