politics

Posting because math

i hope the news outlet didn't bother explaining any of the variables

Apparently the two variables on the bottom cancel each other out so its basically just x - m / m

I forget what they mean I saw the White House’s explanation this morning on some tweet; the x meaning exports to the country and the m means imports from it

wait yeah it literally cancels, I pulled it up

they have epsilon at 4 (price elasticity of import demand), varphi at 0.25 (elasticity of import prices wrt tariffs)

so this is literally just x/m - 1

if they ever decide to modify those values they won't cancel anymore

Yes of course

Ya they just currently do is all

I don't think this formula has any reasonable basis, at least I can't see why import export deficits imply they should tariff a country

also since they are tariffing everyone regardless, there should be an absolute value

Alternatively, the US should follow this to the T and reverse tariff if they have a trade surplus

the tariff values are almost all 1/2 reciprocal with a minimum of 10%

why bother with a formula

Did they even need the formula

Ya

I assume this is because they want boomers to have no idea what the fuck this actually means

because most people suck at math

It felt pretty simple to understand to me, something about this feels odd

They see this and think "wow, they probably had some phd mathmatician work out the optimal formula to make america great again"

or something

its trump saying its going to be reciprocal then he does half of what he implied

the art of the deal

Because he knows if he went full reciprocal he’d ruin the economy lol

I agree with some of the things trump did, but I legitimately think the tariff thing is retarded

I see no logic behind it

he's trying to make countries lower their tariffs

Well, I think thats not going to work

he is just pissing off every other country

A lot of these countries have those in place for a reason

They aren’t just fucking with the US for fun

The reason is the reason we are putting them in place

And a lot of them I bet he didn’t even talk to haha

Can you believe it

Putting them in place by needlessly impacting your own economy to own the libs

greatest nation on earth

If he wants to go full protectionism thats whatever, I don’t think thats a good idea but he can do that if we wants, I think he just needed to do it a lot more gradually

I mean, if the end goal is full end of global trade

this is a means to do it

Encourage the industry to be built and then he can start tariffing

He's trying to foster internal growth of business and production is how I understood it

Yes

Which is mostly the point of tariffs

In pretty much any case

He is doing it in the "kill the baby in the bathwater then just make a new baby approach"

which is why I think its stupid

There are ways to do this without cold turkey tanking your own economy

Tariffs are indeed how you do protectionism, the problem is the US doesn’t have a lot to protect rn because they rely too much on trade. But slamming on the breaks without a backup is gonna hurt for a loooooong time