Comments by "Nicholas Conder" (@nicholasconder4703) on "David Pakman Show"
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@TiredoldFox But that means that ALL goods from foreign sources will cost you more. It automatically means that inflation will jump by at least 20%. A tariff is a TAX that is applied to an IMPORT AFTER it enters the country. For example, if you would normally buy a laptop from any country for, say, $1100 (company buys it for $1000, then adds 10% for profit margin before selling it to you).
Now, with a tariff, the foreign seller still gets $1000, but the company that bought the product now has to add a 20% tariff, or $200, to that product, making it cost $1200. Those $200 go to the US FEDERAL GOVERNMENT - it is a TAX! Then the company has to add, say, 10% to the product so they can still make a profit, so your laptop is now $1320, instead of what you would pay without tariffs ($1100). You are paying $220 more for that product!
Basically, you have an immediate 20% INFLATION RATE where all that money goes to the GOVERNMENT! And if it applies to all goods coming into the country, that means that any foreign electronics going into your car, computer chips in you fridge, nails for carpentry, ALL OF THEM will be 20% more. In other words, the government will be ripping you off and you will be bending over and asking for more!
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