Tariffs is a kind of Government Revenue/Carlos Pueblo
The U.S.
initiates an increase of tariffs against most of items imported from the rest
of the world
is very complicated, America First, trade imbalance, and huge national
deficit,
etc. If we consider tariffs is a kind of government revenue, then evaluate the
motive of
the Administration, it becomes much easier to understand the whole deal.
Trump needs
to cover his huge budget deficit in the result of his tax cut and increase
of defense
budget by cutting the rest of the federal expanse such as welfare, education
, environment,
etc. He sees tariffs is a quick way to get the money needed, for instance,
the target
of aluminum and steel import from China, 10% to 25%, for 50 billion may drive
10 billion
for the Administration a year, then he escalates the trade war with China for
additional
imported items for 200 billion with 10% increase of tariffs which means 20
billion a
year additional income, then he threatens China again for another 200 billion
almost close
to reach annual level of 470 billion from that nation. China is exhausted to
retaliate
with the same amount of 50 billion on the first round because the imported
items
from the
U.S. are fewer than the other way around. Who are going to pay the increase of
tariffs?
I am not
going to spend in order to avoid the inflated price due to the increase of
tariffs.
My frugal
habit will definitely help me to reach such goal. The U.S. production can not
catch up
that fast due to the new facility of factory and the high cost of labor, don’t
even
mention of
skilled workers. We have been avoid the inflation under systematical
diminishing
the U.S.
currency throughout the years of the rescue of economic downfall, 1987 and 2008
for
instances. Increasing tariffs will change the American way of life eventually.
I must continue
my strategy of
frugal and saving for the rest of my life. I shall not be bothered by this
tariffs
increase.
I shall
maintain my simple life style continuously and avoid to be forced to. I shall
spend my
retirement fund
wisely and I shall enjoy more of the fresh produce instead of well prepared
foods with
tax added. I feel better now with such idea in my mind.
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