Bernstein Posits That A 10 Percent Baseline US Tariff On Raw Semiconductors Is "Not Going To Do All That Much," But PCs, Servers, And Smartphones Are About To Get Pricier By ~40 Percent
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I suppose my point is if we put any cause of rising prices under the "inflation" umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say "it's inflation."
wrote 8 days ago last edited byInflation is defined as the increase of prices over a set period of time. It is in itself nothing, doesn't do anything and its singular purpose is to be able to say how much something costs today compared to yesteryear.
If the price difference depends on a supply chock (something that affects the ability to produce, like a shortage), or a demand chock (suddenly everbody rejects Tesla) is all the same, it results in a price change and can therefore be compared using the measure inflation. -
That's true if all other things were equal, but they're not. The US is the largest economy in the world, based on GDP, so it has a lot more weight to swing around than others. So theoretically, the US should have more leverage than smaller countries.
That said, I don't think the US has enough leverage to get away with this. Retaliatory tariffs will come and the net result is that trade in all regions will suffer. When you tax something, you get less of it...
The US might be able to get some leverage if we had an economist in power w/ strong diplomacy skills, but we have Trump.
wrote 8 days ago last edited byI don't know how we define "enough" in this scenario, but as you allude to: in the end the USA is just some 400 million people buying things from overseas. Absolutely those who buy the most, and that is what drives the economy in many countries. It is what has picked up countries in SE Asia from poverty to industrialization.
Problem is that now when everything is more expensive in the US, the same people will stop spending. They might have spent the same money on products made in America, but those are precious few and just increased in price. So in effect everyone in America can now buy less for the same money and the industry capacity to produce what's demanded doesn't exist in short term. And in real estate, short term is 3-10 years.
The rest of the world? Well, most of the world just lost their biggest market. Of course, the demand that can't be produced domestically will still be seen, but at a reduced rate, which will reduce the economic development world wide, until new markers are found. China still needs to sell, but the market for the high margin stuff is reduced.
In the end? I wouldn't be surprised if this stunt reduces world trade to such a degree it might be viewed as a notable side effect that carbon use went down. Trump might have managed to stop overconsumption like nobody else and with it energy demand. So despite doing the oil industries bidding and go against renewables, the shipping industry stand to loose enough trade that it might affect oil use world wide.
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I don't know how we define "enough" in this scenario, but as you allude to: in the end the USA is just some 400 million people buying things from overseas. Absolutely those who buy the most, and that is what drives the economy in many countries. It is what has picked up countries in SE Asia from poverty to industrialization.
Problem is that now when everything is more expensive in the US, the same people will stop spending. They might have spent the same money on products made in America, but those are precious few and just increased in price. So in effect everyone in America can now buy less for the same money and the industry capacity to produce what's demanded doesn't exist in short term. And in real estate, short term is 3-10 years.
The rest of the world? Well, most of the world just lost their biggest market. Of course, the demand that can't be produced domestically will still be seen, but at a reduced rate, which will reduce the economic development world wide, until new markers are found. China still needs to sell, but the market for the high margin stuff is reduced.
In the end? I wouldn't be surprised if this stunt reduces world trade to such a degree it might be viewed as a notable side effect that carbon use went down. Trump might have managed to stop overconsumption like nobody else and with it energy demand. So despite doing the oil industries bidding and go against renewables, the shipping industry stand to loose enough trade that it might affect oil use world wide.
wrote 8 days ago last edited byI agree with most of that.
The thing is, other countries don't want to see a slowdown in trade, so there's absolutely a chance that they'll be more willing to make deals with the US in exchange for reduced tariffs. In the short term (again, like you said, could be years), there will be reduced demand, which will hurt markets, and I wouldn't be surprised if conservatives get slammed in elections in the next 2-3 years since the pain will likely still be fresh. I don't trust Trump to actually make those deals though, especially since so many other countries seem to hate him.
We'll see though. It's going to suck if he sticks to his guns and keeps tariffs going in his apparent plan to revitalize US industrial capacity. I'm not sure why we want that, but that seems to be what he wants.
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That's true if all other things were equal, but they're not. The US is the largest economy in the world, based on GDP, so it has a lot more weight to swing around than others. So theoretically, the US should have more leverage than smaller countries.
That said, I don't think the US has enough leverage to get away with this. Retaliatory tariffs will come and the net result is that trade in all regions will suffer. When you tax something, you get less of it...
The US might be able to get some leverage if we had an economist in power w/ strong diplomacy skills, but we have Trump.
wrote 7 days ago last edited byYeah, the US has a lot of economic weight to swing around, but the world has also spend the decade (!) since Trump was first elected finding other business outlets and generally needing the US less, meaning that the relative weight of the US and the rest of the world has normalized significantly. The EU is stronger, China is stronger, Canada is stronger. The US withdrawing from the world economy would hurt everyone, but it would hurt the US a whole lot more than everyone else.
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because we're all interconnected; you can snip one country out, and it'll slightly hurt everyone, but it'll wreck the country that was snipped out
Conservatives will NEVER understand this.
wrote 7 days ago last edited byThey will if the conservative media machine falls apart and they start actually seeing reality.
It's possible...someday...maybe...
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Every country in the world needs all the other countries more than all of the other countries need it. There's just no real leverage, because we're all interconnected; you can snip one country out, and it'll slightly hurt everyone, but it'll *wreck* the country that was snipped out.
This is just such an absolutely perfect summary. I wish we could American politicians to speak this clearly to explain why this is such a bad idea.
wrote 7 days ago last edited byYou're very kind, thank you.
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I agree with most of that.
The thing is, other countries don't want to see a slowdown in trade, so there's absolutely a chance that they'll be more willing to make deals with the US in exchange for reduced tariffs. In the short term (again, like you said, could be years), there will be reduced demand, which will hurt markets, and I wouldn't be surprised if conservatives get slammed in elections in the next 2-3 years since the pain will likely still be fresh. I don't trust Trump to actually make those deals though, especially since so many other countries seem to hate him.
We'll see though. It's going to suck if he sticks to his guns and keeps tariffs going in his apparent plan to revitalize US industrial capacity. I'm not sure why we want that, but that seems to be what he wants.
wrote 7 days ago last edited byUnfortunately i think it's the same old extortion we've seen before. Trump Jr already posted "I wouldn't want to be the last country to cut a deal", so I guess we will see more if this. Ukraine stood up against it, I hope the rest of the world does to, but I'm afraid most wount.
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Unfortunately i think it's the same old extortion we've seen before. Trump Jr already posted "I wouldn't want to be the last country to cut a deal", so I guess we will see more if this. Ukraine stood up against it, I hope the rest of the world does to, but I'm afraid most wount.
wrote 7 days ago last edited byThey probably won't, but I guess we'll see. Trump is certainly playing with fire here, and that doesn't make me feel great as an American.
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Yeah, the US has a lot of economic weight to swing around, but the world has also spend the decade (!) since Trump was first elected finding other business outlets and generally needing the US less, meaning that the relative weight of the US and the rest of the world has normalized significantly. The EU is stronger, China is stronger, Canada is stronger. The US withdrawing from the world economy would hurt everyone, but it would hurt the US a whole lot more than everyone else.
wrote 7 days ago last edited byMaybe, but I think you're overselling the EU a bit. Yeah, there have been some high profile changes (in terms of stuff that makes the media), but I wonder how much that actually matters.
The EU hasn't really ever been a big importer of US goods anyway, at least not for decades. The biggest importers of US products are Mexico, China, and Canada. The US imports a fair amount from the EU, so if they retaliate with tariffs of their own, the US will just buy less from them, which will hurt the EU more than the US.
The US will have a bunch of negatives in the short term too, but I guess we'll see if those are permanent or just represent a shifting in trade partners.
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This post did not contain any content.wrote 7 days ago last edited by
Translation: Stupid Americans Vote For Felon Rapist Traitor To Increase Cost Of Living
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https://www.bea.gov/news/2019/direct-investment-country-and-industry-2018
The TCJA generally eliminated taxes on dividends, or repatriated earnings, to U.S. multinationals from their foreign affiliates. Dividends of $776.5 billion in 2018 exceeded earnings for the year, which led to negative reinvestment of earnings, decreasing the investment position for the first time since 1982. Tables 3 and 4 provide information on the country and industry breakdown of dividends.
By country, nearly half of the dividends in 2018 were repatriated from affiliates in Bermuda ($231.0 billion) and the Netherlands ($138.8 billion). Ireland was the third largest source of dividends, but its value is suppressed due to confidentiality requirements. By industry, U.S. multinationals in chemical manufacturing ($209.1 billion) and computers and electronic products manufacturing ($195.9 billion) repatriated the most in 2018.
wrote 7 days ago last edited byRight and at no point are you saying that earnings/profits were impacted by the tax amnesty and money being brought back on shore.
Your link says that the most predictable thing happened- all that money sitting over seas was given back to its owners (shareholders).
Absolutely none of this affected profits for that year.
Mind you, that money was not being used for R&D anyways - it was sitting in bank accounts or bonds waiting for a moment like this to come back and be handed out to shareholders. -
This post did not contain any content.wrote 7 days ago last edited by
How does a 10% increase in fees amount to a 40% increase in price?
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This post did not contain any content.wrote 7 days ago last edited by
Anyone underselling the stupidity of this tariff shit is just as stupid as trump.
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This post did not contain any content.wrote 7 days ago last edited by
I've been looking into producing Semiconductor Grade Silicone Powder but I haven't been able to decide between the Plasma, CVD, or more traditional furnace with reduction agent methods without knowing their operational costs. It would be kind of out of my price range to test each of them.
I can run some basic numbers if anybody knows a good industrial catalogue for the equipment.
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And who is eligible to actually vote in the election
wrote 7 days ago last edited byYes I'm not blaming people in New Zealand or something
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The internet is about to feel a lot slower for us as more services move offshore to flee the taxes.
wrote 7 days ago last edited byAnd also as net neutrality is gutted and the oligarchs ensure internet fast and slow lanes.
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Right and at no point are you saying that earnings/profits were impacted by the tax amnesty and money being brought back on shore.
Your link says that the most predictable thing happened- all that money sitting over seas was given back to its owners (shareholders).
Absolutely none of this affected profits for that year.
Mind you, that money was not being used for R&D anyways - it was sitting in bank accounts or bonds waiting for a moment like this to come back and be handed out to shareholders.wrote 7 days ago last edited byThat's literally what I'm saying.
Are you being semantic?
They realized the revenue as dividends, which is exactly what the link says.
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Inflation is defined as the increase of prices over a set period of time. It is in itself nothing, doesn't do anything and its singular purpose is to be able to say how much something costs today compared to yesteryear.
If the price difference depends on a supply chock (something that affects the ability to produce, like a shortage), or a demand chock (suddenly everbody rejects Tesla) is all the same, it results in a price change and can therefore be compared using the measure inflation.wrote 7 days ago last edited byFair enough
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Maybe, but I think you're overselling the EU a bit. Yeah, there have been some high profile changes (in terms of stuff that makes the media), but I wonder how much that actually matters.
The EU hasn't really ever been a big importer of US goods anyway, at least not for decades. The biggest importers of US products are Mexico, China, and Canada. The US imports a fair amount from the EU, so if they retaliate with tariffs of their own, the US will just buy less from them, which will hurt the EU more than the US.
The US will have a bunch of negatives in the short term too, but I guess we'll see if those are permanent or just represent a shifting in trade partners.
wrote 5 days ago last edited byOh, to be clear, I don't think the US has been dethroned on the world stage in terms of being the largest single elephant in the room. It's just that the weight between the US elephant and all the other elephants (combined) has evened out quite a lot.
These tariffs might well do a lot to swing that even further.
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Oh, to be clear, I don't think the US has been dethroned on the world stage in terms of being the largest single elephant in the room. It's just that the weight between the US elephant and all the other elephants (combined) has evened out quite a lot.
These tariffs might well do a lot to swing that even further.
wrote 5 days ago last edited byThey absolutely could. What matters is what other countries do in response.
As an American, I'm not happy right now because things are more expensive without a good reason. Tariffs just end up being a hidden sales tax, and that sucks. We don't need more manufacturing jobs here unless we can do it cheaper or better. Keep good paying jobs here and send the lower paying jobs where they'll be appreciated.