Trump Tariffs Backfire, Kill Jobs & Raise Prices


We now have some data with which we can evaluate
what Donald Trump’s tariffs, which are part of his trade war, have done to the economy. Remember the whole point of putting tariffs
on goods from other countries is to make those goods more expensive so that American people
and businesses will buy local as it were, switching to American goods from foreign goods. That’s the idea. The problem is that we depend on cheap foreign
stuff from countries like China, much more than China. Depends on us. So when both countries tariff each other,
which is what we’ve seen happen, our stuff gets more expensive. While China gets stuff from other countries,
to put it simply, this is a vast simplification, but we’re just trying to get caught up so
we can have today’s conversation. The federal reserve, which is run of course
by Donald Trump’s fed chairman, has put together a report. And what we learned from that report is that
Donald Trump’s tariffs led to job losses while at the same time increasing prices. Now, if you understand even a little bit about
how tariffs work, this is not a surprise from day one. We’ve been saying this is what’s going to
happen. But alas, a lot of Donald Trump’s supporters
denied that this would happen. So this all started with steel and aluminum
tariffs. It’s grown to many more goods. The manufacturing sector has been the hardest
hit for sure. Uh, we’ve seen, uh, agriculture affected,
it has affected many, many industries. Now the report does say to be charitable. This has been the effect so far. It’s hypothetically conceivable that the impact
will reverse in the longer term. So far it has killed jobs and raised prices. Maybe at some point it will reverse, but of
course, why would that happen? It’s an obvious question. There is no coherent explanation for why the
effect would reverse over the longer term. This is the problem with focusing on principles
and ignoring the real world, and I’ve talked about this before. This is really important for the left to understand
if we want to do well, although it applies to everybody. When the tariffs started, you had a lot of
people who were speaking in theoretical economic terms, so a theoretical economic argument
would be tariffs work because they make foreign goods more expensive. That leads to companies using American goods,
which will stimulate our economy and it’ll be bad for China because we’ll be pulling
a whole bunch of business away from them and putting it into domestic businesses. We should protect our economy with tariffs
would be the theoretical outcome or consequence or conclusion of that idea. It’s a lovely theory if we’re starting economies
from scratch, but we’re not, we have an economy in the United States that’s based on cheap
stuff from China. Manufacturing was moved to China years ago
and other countries, because it was decided implicitly, I don’t mean you decided, but
as a country it was decided by our leaders that we value the cheap stuff from China more. Uh, then we would be hurt by higher prices
if we were to keep all manufacturing in the United States. Once that’s in process, something like a tariff
is not going to have the theoretical effect that an economics textbook would suggest. China has more alternatives for their stuff
that they tariffs. The United States on. Our economy is based on getting that cheap
stuff from China. And so then obviously the result is what we’re
seeing. We are seeing job losses combined with higher
prices. Even economics professors knew this early
on and they said the theoretical impact of a tariff is not the same as what the real
world impact will be in 2019 United States and 2019 China. If those two countries get into a trade war,
this was coming a mile away and it ends up being a tax on the middle class who can’t
afford to pay more for stuff in the context of stagnant wages and everything else that
we’ve been discussing. So what’s next? I don’t know. We may see the way the administration has
been running things we may see even more tariffs. We will see what 2020 brings, but the results
not at all surprising to anyone who’s been paying attention and reminder, this is the
federal reserve chaired by Donald Trump’s pick that has told us this is what is going
on. Let me know what you think. Let let me know if you’re surprised, quite
frankly, because it seems as though our audience basically understood this. Remember that on January 1st the blowout 2020
membership special will be available. If you want to be notified about it, it’s
really easy. Just go to David pakman.com sign up for our
newsletter and on January 1st you’ll get an email with an obscene league, disgustingly cheap
membership offer. We’ll take a quick break. Follow me on Twitter. At D Pacman and we’ll be right back after
this,

59 thoughts on “Trump Tariffs Backfire, Kill Jobs & Raise Prices

  1. The challenge used to be, go down to Walmart and find something not made in China……now it's being made in Vietnam/Bangladesh.

  2. Trade wars are easy to win. That, coming from a dumbfuck. His base believed all his shit. Dumberfucks. A pile of cow dung has significantly higher IQs than all these dumbest fucks added together.

  3. Who knew 45's knee jerk, novice, narcissistic, bombastic, foolhardy, gas lighting approach to governing would wreck havoc all across America like an orange tornado?

  4. I was not surprised that this would happen I told my mom and my dad that this would happen and my whole family for that matter but they didn't believe me

  5. This is what happens when a clueless, incompetent, narcissist jackass is given control when he has no training, education or understanding of ANYTHING

  6. what a tool this David is… such a good little liberal. The "problem" is "free trade" hasn't been fair trade – and ANYONE watching the shrinking middle class and the closure of 10s of thousands of factories in the USA is fully aware of that. A trade "war" is absolutely necessary. And like all wars – we pay a cost. What is the alternative? Just allow China to continue to manipulate their currency, steal our technology and shut down our manufacturing class? OUR economy can absorb (frankly) the entire elimination of trade from China. We could stop doing business with China – 100%. So now a does of reality with actual REAL statistics: "chinese economy slows to lowest growth rate in 30 years" https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades

  7. It was the plan all along. How else do you get a domestic economy off of foreign Wal-Mart economy while protecting the wealth of elites?

  8. He’ll blame the democrats and his supporters refuse to believe other wise. We have to overcome the dunning Kruger effect if we want them to come around.

  9. I HATE to say this but I pray our economy goes down the tubes so we can get rid if this orange maggot. It's worth it to me, then we can undo all the poisonous crap he has done

  10. Wow. I have heard some stupid things on YouTube but claiming that we are more dependent on China is the dumbest… And you say it with such certainty too. A huge percentage of China's economy relies on US customers. Americans have to pay and extra few percent if anything. We are also collecting HUGE tariffs from China while they get FAR LESS. Our economy is booming while theirs is floundering. The trade deal we have with China is TOTALLY one sided plus they steal every intellectual property they can. The artificially deflate their dollar to hollow out markets and take them over.
    It also sounds like you are arguing that we should give in to China? This is your second worst video behind the "Trump is definitely a Russian agent" video.

  11. That’s not the idea Trump has in mind, he use them for punishment and America pays the price. He has no idea what he’s doing. Worse is it doesn’t effect him personally like it does the rest of us.

  12. Sad that Pakman missed such a huge part about tariffs.
    Either he is unknowing, or he is just with intent not telling everything for his own gaining.
    One insanely strong part of tariffs is that you get your people to buy more ware produced in own country.
    So yes the people pay a bit higher price for the goods, but the goods they buy, have contributed to more jobs to the people in your country and is long term strengthening your countries stability and economic wealth.
    Its such a basic strength of tariff, that Its sad to see Pakman leave out this part of tariffs. Most likely with intent because "Trump derange syndrome".

    And the reason wares that are produced in USA are higher then wares produced in China, is because works get paid a more decent salary, so by not buying products produced in shitty condition country, you simply do not give money and support shit companies that force people to work for shit salery and so on.

    Not to mention the wares produced in USA compared to China produced, In more less every case, the quality is higher from USA made, not to mention that China and other low wage countries are not so aware of chemicals, resulting in producing stuff without a care about nature and other things….

    FFS.. Sad lefties endorse shit without actually thinking things through. all they care "Trump man bad" we must agree with anyone who say Trump is bad.. Fucking "Trump derange syndrome" losers. Grow a brain.. start thinking.
    ^
    btw… I do not live in USA, so no point in tossing mad insults about me voting for Trump or anything braindead like that.

  13. You don't need to be an economic genius to figure this out. But you do need common sense! Too bad our "stable genius" Commander in Chief has none!

  14. Don’t tell Donny but imagine how well the economy would be doing if he didn’t throttle it with tariffs !!

  15. I'd imagine that tariffs will be much less effective over long periods of time, simply because economies are flexible. Other suppliers will be found within the year and if no buyers for current products are willing to pay the tariffs you can try and find new ones or restructure part of your economy to appeal to other buyers.

  16. Imposing tariffs on overseas goods with reckless abandon was one of the chief contributors to the Great Depression.

  17. The American economy under Trump is like a casino losing money. Hmmmm…this is so familiar. Could we poll those casino workers that worked for Trump to see how much return they got on their investment? Guess what; the average working tax paying American is going to be like that abandoned casino worker…broke. Who stole all the money…DJT?

  18. Unfortunately, the only economic report that matters to Trump's base is the President himself saying how amazing everything is.

  19. Destroying economy? Might we be being a little hyperbolic David? The full tarriffs equate to less than a half percent tax on a 30 trillion dollar economy. Lets not freak out, and runnaround like chickens with our heads cut off on a less than 0.5% tax when youre espousing 12-15% afditional taxes to pay for Med4all, free college, GND, and forgiven student debts. If you think 0.5% is "destroying the economy" – then what will the 12-15% do David?

  20. ….like anyone who ever took Economics 101 in college already knew this would happen. It happened when Ronnie Raygun tried it. It happened when Bush 1 tried it. It happened when Bush 2 tried it. It always happens. It’s inevitable. That’s why I’m mystified when people believe in snake oil economics.

  21. but, but according to drumpf and his minions there are tons of minimum wage jobs available, too bad the magamorons are unqualified even for those unskilled jobs.

  22. "Destroyed" the economy.. triggered a new nuclear weapons race… destroyed the Iranian treaty, the best thing that ever happened in the middle East during the past 70 years just because it was from Obama… Made Russia great again… A 6 years old would have done a much better job.

  23. it's too late, Trump and the greedy rich has fucked up USA with there lies and bullshit and no one cares what happens to them now CHINA AND RUSSIA ARE THE SUPER POWERS ,start learning CHINESE and RUSSIAN

  24. No not the least surprised. I'd also point out that we seem to live in age where we generally have a love of the theoretical. And as was pointed out, this is clear example of the dangers. Theory is all nice and good, but often relies on "idealized" theoretical contexts, and not the messy real world we live in. It can help to fundamentally understand the mechanics of what is happening and such, but should be applied very carefully in practice. It is far often more useful to look at what practical experience we have from the past to conjecture with, and then add some theoretical understanding to that. But people seem to generally prioritize theory first. With subjects like economy that is especially true.

  25. I have tried to explain this to Trump supporters since it happened. Even now people aren't believing what I tell them when I debate and they yell that I am a libtard that is sad about losing in 2016. They only understand when they themselves lose their livelihood to it and some even try and blame Obama. We are currently in an age of under educated angry people that don't believe the truth. I blame mainstream media for this as much as Trump because they create false equivalence between facts and lies.

  26. Trump just lies, and lies. His base doesn’t care, the supposed christians don’t care this Horrible, treasonous person is destroying lives and undermining the USA. But better a trade war than a real war….which is the direction the USA is headed.

  27. My employer just hired 6 new people due to the tax law.

    Be honest…you can’t say how great things are because they “helps trump”.

  28. The Democrats need to grow a pair buy billboards do videos showing him acting ignorant over and over and over till everybody is so sick of it they want to go choke him out themselves taking the high road all the time is going to do nothing but let us be run over everyday you should point out to as many people as possible all the horrible things a man does drive them crazy make them want him gone so they just don't have to hear it anymore

  29. The economy is only surviving off of what President Obama had put in place , and trump is trying to destroy what's left of that because trump has an inferior complex towards former President Obama because the now occupant of the oval office knows he'll never be a leader like Obama , trump destroys everything he touches…

  30. When will the hard trump republicans and his base admit that tariffs are not working and split away from him?

  31. Exactly, we do not gave businesses to compete against China, which is where Trump Actually prefers jobs to be. As a businessman, he would refuse to pay American wages when he could pay cheaper wages and keep more money for himself.

  32. Tariffs only work when you have industries to protect from imports … Also to tax imports on items needed in the country such as raw materials… The U.S. doesn't have anything to protect … Industry was exported for greater profits and to crush unions …It was decided by the corporations / owner class with no consideration for the American people … Due to suppressed wages the only way to maintain a living standard was to import cheap goods from 3rd world countries

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