Post AskFTdxFhaBddizPE0 by calmeilles@mstdn.social
 (DIR) More posts by calmeilles@mstdn.social
 (DIR) Post #AskFTdxFhaBddizPE0 by calmeilles@mstdn.social
       2025-04-04T05:21:04Z
       
       0 likes, 0 repeats
       
       You just know that this is true, don't you.#Politics #Economics  #tariffs  #Trump
       
 (DIR) Post #AskFUftDzczbvlb5pg by divVerent@misskey.de
       2025-04-04T10:40:19.075Z
       
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       @calmeilles@mstdn.social Also, the math. Ignoring all the politics, the math to compute the tariffs was obviously wrong.First of all, a 10% floor was applied twice - once before and a second time after discounting by 50%. Weird, but well, fine. I guess this was simply to obfuscate the actual math.Second, the math was that foreign "tariffs, trade barriers and currency manipulation" are trade deficit / imported value. As trade deficit is imported value - exported value, this value can never be above 100%.This already proves it is obviously wrong, as there is nothing magical about 100% tariffs. They just double the import price.Even if we presumed it would be a sensible goal to get the trade deficit to zero - then the correct math definitely has to be more complex than this. At the very least it would have to take into account the price of foreign vs domestic goods, so the tariffs can make the foreign goods more expensive than the domestic ones so buyers prefer domestic.And the math for this - well, this is economy mathematics. It is definitely much more complex, as one will have to model buyer behavior and somehow plug in the current prices.