I can’t help wondering if the biggest problem in the US right now is that a majority of people having a “fundamental misunderstanding” about many, many very important things.
Maybe it’s because of propaganda, mis information, social media, education or because they’re too busy and tired trying to make ends meet so they don’t have time to research issues for themselves.
It feels like it will be very difficult to course correct when so much money and power wants it this way.
Reminds me of the staggering number of people who don't get marginal tax rates, even thinking they should pass up certain raises so they don't get pushed into a higher tax bracket and pay a higher rate on their whole salary.
Or the staggering number (likely a very large overlap with your group) who appear to see their tax refund as "free money back from the government" instead of what it really is: "you are simply getting back money you loaned to the government interest free for up to a year".
Most people here in the US that I talk to understand that the additional tariffs imposed by the Trump administration are an attempt to get domestic US industries to produce the items that are now being imported subject to the tariff. In some cases that has been successful. In many cases not. Many industries are virtually impossible to de-globalize.
Step 1: put tariffs on coffee and bananas.
Step 2: pump out CO2 until climate is appropriate for growing coffee and bananas.
…
Step n: Load profits onto your scavenged freight boat and try to find Dryland.
The end result is still higher prices for the end-consumer... If the local businesses were unable to compete with a foreign supplier w/o the tariff, they'll be unable to do it with the tariff. So the consumer will end up paying less than (foreign + tariff) but higher than (foreign).
Yes, and the gamble is that the positives from boosting domestic industry will outweigh the negatives from higher prices. The only people confused about this are NPR-constructed strawmen.
Except Trump himself repeatedly claimed that the exporting country is paying the tariffs and that the US is earning billions of dollars. And many of his followers seem to believe this.
There is no domestic industry, it all moved overseas, and the existential risk to cessation of fiscally enabling tariffs within 4 years (assuming set and forget; note, business's ideal outcome), means most of the money will just find something else to chase for modest returns for 4 more years. Nevermind everything else going on poisoning goodwill toward the U.S. currently. The absolute, unmitigated stupidity on display currently is nothing less than I expected from a population without a Great Depression under their belt. We truly, truly, are too dumb as a society to have learned and internalized a goddamn thing.
...get domestic US industries to produce the items that are now being imported...
But, that's (corporate) socialism, and that group of people (mostly) claim to hate socialism.
There's a time and place for tariffs. Protecting "all" domestic industries via global trade war is (IMO) not it. Nor is wielding tariffs as a punishment simply because a foreign leader wasn't docile and subservient enough for Trump.
I agree the administration tariffs "wouldn't be levied on manufacturing inputs" if they really wanted to help domestic industries. I'm not saying they're doing the right thing, I'm just saying that most Americans I talk to understand the INTENTION is ancient protectionist logic, but the Fed report is evidence that this logic is currently failing to produce the administration's intended "manufacturing miracle". It is so inconsistent, being successful in very specific niches (like some domestic textile or furniture segments), but the Fed notes that nearly half of all businesses reported a decrease in their bottom lines due to the policy.
Manufacturing miracles aren't instant: it takes a lot less effort to import something than to invest into manufacturing. The inconsistencies mirror this perfectly: the industries where startup costs are lowest see the boost.
Maybe it’s because of propaganda, mis information, social media, education or because they’re too busy and tired trying to make ends meet so they don’t have time to research issues for themselves.
It feels like it will be very difficult to course correct when so much money and power wants it this way.