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If a widget costs $10, and a competitor comes in who is subsidized by the largest population in the world and then sells a competing widget for $1, this will se

If a widget costs $10, and a competitor comes in who is subsidized by the largest population in the world and then sells a competing widget for $1, this will seem like a great deal in the short term for the population. (Until they stop manufacturing widgets because they can’t sell below cost.) Adding $9 in tariffs to the $1 may seem like inflation, but it’s something slightly different.

bryanlarsen 2y ago
As I said originally, that might be good in the long term, but in the short term that's 900% inflation.
- mensetmanusman 2y ago
  For a consumer, there are some key differences between anti-dumping duties and inflation. ADD: This only affects the price of specific imported products on which the duty is imposed. It doesn’t impact the overall economy or all goods, just the targeted products. Inflation affects the prices of almost all goods and services in the economy. It is a widespread increase in the cost of living rather than a targeted rise in prices of specific items. ADD: Consumers will see price increases only in the goods that are subject to the duty. This could make foreign goods more expensive than their domestic alternatives, potentially reducing consumer choice or driving them toward domestic products. Inflation impacts the price of all goods and services, not just specific items, leading to a broad reduction in real income if wages don’t keep up. ADD: This is typically a temporary measure until the market corrects itself or until dumping practices are stopped. Inflation can be long-term or short-term, depending on the economic conditions driving it.
  - bryanlarsen 2y ago
    Chinese goods are a large percentage of the goods that American consumers consume. A price increase in them is a broad price increase. And approximately all of the goods produced in the US use a large percentage of Chinese parts. American services use Chinese goods. They'll all see cost increases. The shift in demand towards different domestic products will cause price increases -- demand for these will outstrip supply, causing price increases.

bryanlarsen 2y ago

As I said originally, that might be good in the long term, but in the short term that's 900% inflation.

mensetmanusman 2y ago
For a consumer, there are some key differences between anti-dumping duties and inflation. ADD: This only affects the price of specific imported products on which the duty is imposed. It doesn’t impact the overall economy or all goods, just the targeted products. Inflation affects the prices of almost all goods and services in the economy. It is a widespread increase in the cost of living rather than a targeted rise in prices of specific items. ADD: Consumers will see price increases only in the goods that are subject to the duty. This could make foreign goods more expensive than their domestic alternatives, potentially reducing consumer choice or driving them toward domestic products. Inflation impacts the price of all goods and services, not just specific items, leading to a broad reduction in real income if wages don’t keep up. ADD: This is typically a temporary measure until the market corrects itself or until dumping practices are stopped. Inflation can be long-term or short-term, depending on the economic conditions driving it.
- bryanlarsen 2y ago
  Chinese goods are a large percentage of the goods that American consumers consume. A price increase in them is a broad price increase. And approximately all of the goods produced in the US use a large percentage of Chinese parts. American services use Chinese goods. They'll all see cost increases. The shift in demand towards different domestic products will cause price increases -- demand for these will outstrip supply, causing price increases.