So, Who Pays Trump’s Tariffs On China? Americans, Obviously And Of Course

One of the greatest failures of understanding in trade economics is who is it that actually carries the burden of tariffs. Who is it that actually pays them?

Donald Trump is insisting that it’s all China paying those tariffs on Chinese produced goods which are then exported to the United States. Which, of course, it ain’t. But he’s saying it:

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S&P Says It’s China Winning The Trade War, Not US As Trump Says

Of course no one actually wins a trade war – consumers only lose and we are supposed to be running the whole system in the interests of consumers. But even then, within the mercantilist terms of who is winning by the misshapen counting methods of trade protectionists, it seems to be China winning, not Trump’s America. So at least says S&P:

But let’s put that political question aside and think about what is happening in the declared terms of that trade war.

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Disney’s Ariel Doll Pays Chinese Worker Only 1 Pence Wages Each

The latest scandal uncovered by The Guardian is that the Ariel doll from Disney – the mermaid – ends up paying the Chinese assembly line workers that make it only 1 pence each. That’s 1 p out of the £35 cost of the doll. Undoubtedly this is a scandal! Well, it is unless we have a little look at the logic being used here.

Our first observation would probably be that there’s not much labour used in the making of the doll then.…

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As Malaysia Cancels, China’s Belt And Road Isn’t Worth It

A working mantra of our times is that we should all be building much, much, more infrastructure. And that it should be government telling us where and what should be built, even going and building it. All of which rather runs into that brick wall of what is happening with China’s Belt and Road Initiative.

Yes, it’s entirely true that the old Silk Road was a useful and enriching trade route. It’s equally obvious that other trade routes have had the same effect, enriching.…

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China Printing India’s Banknotes Is A Great Idea – Even If It’s Not Happening

The thought that a Chinese company might be printing India’s rupee banknotes has the more nationalist there – for which read far too many – up in arms about this selling out of vital national sovereignty. A ridiculous conception stemming from not understanding the difference between making money and making banknotes. India giving up the right to make its own money, to make rupees, would be a disastrous idea. India hiring someone else to come print the rupee banknotes is somewhere between trivial and sensible.…

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The China, US, Trade War – It’s All Mutual On The Way Down As Well As Up

So Donald Trump is going to spiral the trade war up a level by imposing tariffs on $200 billion’s worth of Chinese goods. Presumably the next stage will be China imposing more tariffs on more US goods – although obviously they cannot hit quite as much trade as the US doesn’t sell that much to China. But this is how this idiocy works, as it did with Smoot Hawley those several of generations back:

The Trump administration pushed ahead with plans to impose tariffs on additional $200 billion in Chinese products by releasing a list of targets, marking a sharp escalation in a trade war between the world’s two largest economies.

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Chinese Peasants Who Made History

Dr. Madsen Pirie of the Adam Smith Institute writes how peasants in china changed the course of their countries development.

It began with a piece of parchment secretly signed by trembling hands in the flickering light of 40 years ago, but it has reverberated around the world. Those 18 brave souls who defied authority to try a new way of doing things were the pioneers of a revolution that has transformed the prospects for humankind. We salute them today.

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