Tariffs will make the average American poorer.
Discussion
Bitcoin fixes this
How?
When your unit of account is BTC, fiat economic warfare is irrelevant.
This isn't true. Wether your unit of account Is btc or not, the pie you import from Canada will cost you more.
You will either have to stop buying that pie you love or take the hit and become poorer to get it.
Either case you are more poor. Not getting what you used to be able to is a sign that you are getting poor.
We will find a different pie, and a domestic company gains market share + grows as a result of consumers choosing the American option.
I think it’s a smart play when our customers economy is a juggernaut compared to them.
If your unit of account is bitcoin, the pie keeps getting cheaper though 🤔
But you had to change the pie. There is a reason you were buying that specific pie and not an other one. If you changed it's because you had to settle for less (subjectively).
Sure the local one will gain market share but only because they received outside help. Not because they truly were the best choice.
If it was really that simple, then the US should put a 100000% tariffs on t-shirts to be sure they are all made in the US. We both know that would be a terrible idea.
All of government is an experiment
I find this one fascinating.
It does shift consumer spending with outside help, not necessarily through pure merit, but as the American president his job is to protect and help American businesses.
But I would argue that protecting that one business by forcing other citizens to buy from it does not help 'Americans' at large.
In Canada our government protect the maple and milk industry with tariffs and price controls. I hate it. There is no real competition.
Nobody is forced to buy anything, but when Canadian goods cost more, Americans will find alternatives. Notably, they’re incentivized to buy American and that jostles and encourages an industry to get going on competing, elevating the American economy.
I don’t really buy milk or maple stuff, but I always have 2-3 bottles gifted and stored somewhere.
This isn’t something that will affect Americans as much as it does Canadians.
Sure but you're going back at finding alternatives which I never said would be impossible.
What I'm saying is that this alternative will either be more expensive or lower quality. None of these two options makes an individual richer.
It's also very simplistic to reduce canadian import down to milk and maple syrup. If it was just those 2 ai don't think Trump would have even bothered.
In fact, the reason why those tariffs will hurt us is because our economy as been built to export *a lot* to the US. And I'm not thinking at finished product like maple syrup as much as machinery parts.
But yeah sure. You can just buy one of those part made in the US instead. But you might have to pay double. You paid an American sure. But you're still poorer than if you had paid a Canadian in a free market + the American you paid would have simply be incentivized to work on something and that isn't bad.
Oh to clarify a point. Nobody is forced at gun point to buy anything but if I put a 10000% tariff on everything but that 1 American business I am essentially forcing everyone who need their product to buy from them.
It's like saying nobody was forced to take the vaccine when people were threatened to lose their jobs. Technically you're right but we both know it's not that simple.
не знаю.... в цене биткоина во времени все дешевле и дешевле... фиат не приделах) энергия.
High time preference or low time preference? Are you basing this on foreign goods increasing in price?
Yes and suboptimal capital allocation.
If under a more free market ot was discovering that it was more optimal to buy wood from Canada instead of wasting labor into local wood production then ot is suboptimal to force your citizens to chop their own woods.
I guess you could argue that it is good tho to preserve savoir-faire in your country.
I guess I don’t think of average Americans capital allocations, all these bitcoiners are my fam. We will be ok with everything trending towards zero vs ₿. Short term could be dicey for normies but I’m interested to see how these tariffs and all the other changes will look in the future when we zoom out.
Ot isn't about the capital allocation of individuals persay. It's how the whole economy shifts towards producing ressource A instead of of ressource B.
Let's say it used to be more profitable to produce ressource A instead of ressource B but the tariffs changed that. They would essential be producing something that is more profitable only because the state influenced in that way. Not because it is truly more profitable (and therefore better for society as a whole) to produce it.
In the long run this is what I see. Americans producing more cars instead of doing something else because the state didn't want Chinese cars even tho they were same quality at a lower price.
(This specific example is pulled out of my ass but this is the principal..)
I get what you’re saying. You may be right, I’m just a pleb. For devils advocate sake tho, now that car is made here by an American citizen with American steel that benefits both that guy and the guys that made the steel. The purchase price would be higher but that money would filter more through our economy instead of say china. I’m pulling this out of my ass too, most likely just like the politicians are as well. It will be interesting to see how this plays out. We are the experiment and have been for some time.
If doing the cars here today was the best choice they would all be made here today. The reason they aren't is because we found something more productive to do. The Chinese are better than us at making cars.
Our ressource aren't infinite. If we are making cars here, it is likely and almost certain the we would be pulling ressources (like labor) out of an other field.
If it was really as easy as "buying local is better" then why wouldn't they US put a 100000% tariffs on t-shirts to be sure they are all made here?
(I appreciate the convo it's ok if you're pulling things out of your ass)
I’m all about open markets, capitalism, water seeking its own level without overreach and manipulation. We’re on the same team fren. Nice chat