Obama Backs Union; Imposes 35% Tariff on Tire Imports (PRC)

No, it isn't. The audience is quite up to understanding the message unfortunately.
 
The numbers make perfect sense. The audience is obviously two buckets short of a bath.
 
I am not a fan of tariffs for protectionism.


Unlike most who oppose tariffs though, I strongly support tariffs based on externalities. That would mostly mean pollution, but I'd also include human rights abuses, support for terrorism, manipulation of exchange rates, and market manipulation by cartels. There are plenty of fair tariffs that could be levied on China.

I certainly agree on environmental tariffs, but the tariff would have to be tied to the particular product, not just a general political punishment, and domestic producers would have to be placed under exactly the same regulatory framework. I'm not keen on punishing governments by throwing poorly targetted economic sticks at the general populace.

On the other hand this nationalist protectionism that Obama has just backed is clearly indefensible.
 
Undead Karl Marx suggests, yes, that is possible.
 
Chinese tires suck anyways. Better to spend a few extra bucks and buy American.


And yes, there really is that much difference in tires. Never, never, pick tires based on low cost.
 
Chinese tires suck anyways. Better to spend a few extra bucks and buy American.
So do their guns. If you want to kill a public servant...
 
I despise protectionism. This was not the change I was hoping for.
 
Guess we can get the money to pay back the Chinese from China!
 
Like to know what tires are made in china because there isnt a chance in hell I would want it on my vehicle.
 
Like to know what tires are made in china because there isnt a chance in hell I would want it on my vehicle.

If you don't recognize the brand name, odds are.... The $40 specials at tire stores. Anything from Pep Boys.

Seriously boys and girls, pay the price for name brand tires.
 
I am not a fan of tariffs for protectionism.


Unlike most who oppose tariffs though, I strongly support tariffs based on externalities. That would mostly mean pollution, but I'd also include human rights abuses, support for terrorism, manipulation of exchange rates, and market manipulation by cartels. There are plenty of fair tariffs that could be levied on China.
/Agree
The default "Liberal Faction" in many countries are both laissez-faire and protectionist; more notably there are four French parties, one German party, one Greek party and five American parties that have it; there are a total of 155 parties which have this combination.

wait, I thought we only have 2 (J/K)
 
I know this is a little off topic (but still related: trade restrictions) but when will Obama lift the embargo on Cuba?

And I disagree with Cutlass about buying name brands. Actually, I don't want to put words in his mouth, if he means tires in particular, but in general I don't bother buying name brand anything, I usually by on the cheap. Cheap doesn't always mean lesser quality. If that's not the case with tires, I'll shut up about it.
 
Chinese tires suck anyways. Better to spend a few extra bucks and buy American.


And yes, there really is that much difference in tires. Never, never, pick tires based on low cost.

Well, not necessarily american, but the sentiments are correct. The plain economic fact is that if people will pay extra for quality (or even a perception of quality), provided that they have enough information to make an informed choice. Ultimately, subsidies and tarrifs are destructive, because they don't encourage any internal efficiencies.

For example, the US tyre industry would be best to restructure, improve internal efficiencies and highlight the differentiation between products. Maybe even introduce their own "economy" range of tyres.
 
Chinese tires suck anyways. Better to spend a few extra bucks and buy American.


And yes, there really is that much difference in tires. Never, never, pick tires based on low cost.

good tires can be the difference between life and death
 
Ultimately, subsidies and tarrifs are destructive, because they don't encourage any internal efficiencies.

This is true, but...

For example, the US tyre industry would be best to restructure, improve internal efficiencies and highlight the differentiation between products. Maybe even introduce their own "economy" range of tyres.

But that can also encourage a race to the bottom. It's now normal to assume that the consumer is always right - meaning that the market outcomes are always right - but that's not so. Poor information is inevitable, and so are poor choices.

And I do not believe that people will pay extra for quality. People will get whatever seems "good enough" and seek lower prices. That is the rationale for so many consumer products have specifications constrained by regulations, instead of leaving choice to the market. Admittedly some may be exaggerated, or even even disguised protectionism or support for some particular manufactured obtained though successful lobbying - but most people don't question the reasons presented for regulation: that without it cheaper, lower quality products, would displace the "better" ones.

Price competition can also create a feedback mechanism leading to general degradation of quality of some mass-produced goods. If it is something which has big economies of scale the competing manufacturers may not be capable of separating the product economically into high-quality and low-quality versions: low volume of the high-quality version can lead to much higher prices and cause it to be pulled out from the market entirely. Or be affordable to most consumers, while it would have been affordable had it been mass-produced.
 
I agree, which is pretty-much why I also said

The plain economic fact is that if people will pay extra for quality (or even a perception of quality), provided that they have enough information to make an informed choice

Or even a misinformed one. Get people to believe that they're paying more for quality, and that they need to buy quality, and they might. SLapping tarrifs on to make people buy "quality" (when the reality can be that they're not actually buying better quality, but just the same quality at a higher price), doesn't help the consumer.
 
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