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Joined: Jun 2019
Posts: 7,297 Likes: 175
Top 30 Poster
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Top 30 Poster
Joined: Jun 2019
Posts: 7,297 Likes: 175 |
Lol, I just took a look at this "Tariff Adjustment Calculator"... ("Consider an environment in which the U.S. levies a tariff of rate τ_i on country i and ∆τ_i reflects the change in the tariff rate. Let ε<0 represent the elasticity of imports with respect to import prices, let φ>0 represent the passthrough from tariffs to import prices, let m_i>0 represent total imports from country i, and let x_i>0 represent total exports. Then the decrease in imports due to a change in tariffs equals ∆τ_i*ε*φ*m_i<0. Assuming that offsetting exchange rate and general equilibrium effects are small enough to be ignored, the reciprocal tariff that results in a bilateral trade balance of zero satisfies:") This doesn't define "elasticity" or "passthrough". And "assumptions about exchange rate equilibrium" leaves a lot to the imagination, especially if it can be ignored. But, the formula actually looks fairly basic; {Total imports and costs/Total exports and costs} = Zero Difference If the sum isn't zero, then an adjustment is necessary. I'm sure the actual figures are much easier to understand lol; (1 for you / 1 for me) =  Big Picture; Bean counters always love complicated math. For example: Calculating gas prices to the tenth of a cent... International trade rules could certainly be simplified... Trump knows that. ====================================== I simplified this equation so that even Dom-n-Rob could understand it... Pffftth, wasted effort. YA'LL ARE ONLY INTERESTED IN ARGUING AND AGGRAVATING EACH OTHER! Then you castigate me for my Christian, conservative, white, privileged, male, heterosexual, Constitutional Patriot bias! Everett may be right. It may start with all of us, as individuals, doing our small part in our own homes. Problem is, all my neighbors seem to be blathering idiots!
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