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"it fails a test that actual 5th graders can pass... Here’s how that conversation went:

“Imagine you want to buy a toy at a store which costs $50. You pay for the toy and walk away with it. The President looks at that transaction and says ‘wait, you paid the store $50 and the store paid you nothing, therefore the store is stealing from you. To “fix” this, I’m going to tax the store $25. From now on that same toy costs $75.”

https://www.techdirt.com/2025/04/03/trump-declares-a-trade-war-on-uninhabited-islands-us-military-and-economic-logic/

#Trump #Tariffs #GOP #Politics #USPol #News
Headline and text from article: Trump Declares A Trade War On Uninhabited Islands, US Military, And Economic Logic Economics from the when-you-don't-understand-trade,-everything-looks-like-theft dept Thu, Apr 3rd 2025 09:29am - Mike Masnick There’s a fundamental problem with Donald Trump’s new trade policy: it fails a test that actual 5th graders can pass. I know this because I tried explaining his “Liberation Day” trade plan to one last night. Here’s how that conversation went: “Imagine you want to buy a toy at a store which costs $50. You pay for the toy and walk away with it. The President looks at that transaction and says ‘wait, you paid the store $50 and the store paid you nothing, therefore the store is stealing from you. To “fix” this, I’m going to tax the store $25. From now on that same toy costs $75.” The 5th grader looked at me like I was crazy. “Whaaaaaaat? None of that makes sense. If I pay for something, it’s not stealing. And taxing the store seems stupid, and then everything is more expensive. Why would anyone do that? That can’t be how it works.” This is the core problem with Trump’s “Liberation Day” trade policy: it fundamentally misunderstands what trade deficits are. And if you think that’s bad, just wait until we get to the part where this policy declares economic war on penguins and our own military base.

Trump Declares A Trade War On Uninhabited Islands, US Military, And Economic Logic

There’s a fundamental problem with Donald Trump’s new trade policy: it fails a test that actual 5th graders can pass. I know this because I tried explaining his “Liberation Day…
Techdirt
#news #trump #gop #politics #uspol #tariffs
Zhi Zhu 🕸️
"On top of that, Trump can only impose tariffs (normally a power of #Congress) based on the International Emergency Economic Powers Act and the National Emergencies Act. Both laws require there to be an actual “emergency.” The only emergency here is that nobody in the administration understands what trade deficits are."
- @mmasnick

https://www.techdirt.com/2025/04/03/trump-declares-a-trade-war-on-uninhabited-islands-us-military-and-economic-logic/

#Trump #Tariffs #GOP #Politics #Coup #Corruption #USPol #Trade #News #US #USA
Text from article: You might notice something about that paragraph. It starts by describing how tariffs hurt the economy in the short term. Then there’s a “but” — which usually signals some kind of silver lining. Instead, it just pivots to explaining how tariffs hurt the economy even more in the long term. Cool. So we have a policy that: 1. Is based on a fundamental misunderstanding of trade deficits 2. Uses made-up numbers derived from a nonsense formula 3. Would actually make the “problem” it’s trying to solve even worse 4. Will definitely make Americans poorer But wait, it gets better. All of this glosses over the fact that “reciprocal tariffs” are not reciprocal at all. Trump’s team is making up fake tariff numbers for foreign countries based not on anything having to do with tariffs, but on trade deficits, which is just an accounting of inflows vs. outflows between two countries. It’s only reciprocal because the Trump team faked the numbers. On top of that, Trump can only impose tariffs (normally a power of Congress) based on the International Emergency Economic Powers Act and the National Emergencies Act. Both laws require there to be an actual “emergency.” The only emergency here is that nobody in the administration understands what trade deficits are.

Trump Declares A Trade War On Uninhabited Islands, US Military, And Economic Logic

There’s a fundamental problem with Donald Trump’s new trade policy: it fails a test that actual 5th graders can pass. I know this because I tried explaining his “Liberation Day…
Techdirt
#news #trump #gop #congress #us #trade #politics #usa #uspol #corruption #Coup #tariffs @Mike Masnick ✅

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