Market reaction to Trump's China tariffs? DOW crashes over 700 points!!!

We are the market, they are the producers. If we buy less that means less production, less sales, which means way fewer jobs on that end than the consumer end. This isn't about bias, its simple logistics...

 

So you have no proof...you are just guessing.

Noted.

So the DOW dropped almost 1150 points over two days - largely due to these tariffs - because they think they will help America? Riiiiiight.

I guess I have news for you - Wall Street knows a HECK of a lot more about macroeconomics then you (or I) do.

Good day.

 

stock futures are down currently -424.69
http://money.cnn.com/data/markets/dow/

 

No one is guessing, everyone knows of the trade deficit.
Except you apparently.

Wall Street.
The Dow 250 is not America. It is 250 multi-national companies registered to seek investment in America.
It is no surprise that many of them may be adversely affected by tax rises targeted at international trade.

 

Then it is a terrible point. The last trade war that we launched, over steel and aluminum, cost the US 200,000 thousand jobs. By your logic, the point is that we (hopefully) made "others" lose more than 200,000 jobs.

 

There is nothing 'hopeful' about it, it would be the result. We are the market for their goods. A trade war will have a greater negative impact on them than us. There is no other way to address the imbalance, and if there is why didn't Obama do something during his eight years?

 

We are A market for their goods, not even their biggest, and there is plenty of partners in the developing world to trade with and that’s exactly what they’ve been doing. You guys don’t really get how this works, me thinks.

 

There are whole sections of the country, the rust belt, destroyed by free trade.

I could care less how many points the dow loses. We need to start creating rather than eliminating good paying jobs in the US. Free trade has been a total disaster for working men and women.

 

Take China. For every dollar we sell to them, we lose two!

Losing less is better.

 

Right, because the only good wages that exist in this country clearly come from the jobs lost to free trade. Clearly.

 

K... and so when American consumers are the ones losing due to higher prices, you guys don't care about that? Got it.

 

We care about the lack of median income gains, high poverty rates and soaring disparity that free trade resulted in.

 

The trade imbalance is not something that necessarily needs to be addressed because a trade deficit is not necessarily a bad thing.

And again, you appear to be arguing that a 200,000 US job loss is OK, so long as the "others" lose more than 200,000.

 

You seem to be arguing that the loss of much of the US industrial base in the eighties which free trade caused is a good thing.

 

And you think that trade wars is going to fix that? LOL

No, it was an inevitability that wasn't properly dealt with.

 

It was't dealt with because pro business free traders thought stagnating wages were awesome. Now workers are fed up with their low wage policies. If you gave a damn you should have done something 40 years ago. Its too late now.

 

Yep, I totally should have done something about it before my existence. Good one.

 

The people who's philosophy you support should have.

What should give free trade supporters pause is it is the normally pro-business Republican party supporting tariffs. That shows just how little support there is for free trade.

 

Sure it is. So long as you like cheaper goods with more choice and better quality.

Evolving economies always result in winners and losers. The US industrial base was one such loser because Americans were given the choice of cheaper goods with better quality and they chose to purchase. Forcing Americans to pay more for less quality and choice will flip that trend and it MIGHT help the US industrial base, but there will be a host of new losers, including the US consumer.

 

The wealthy and business gained, workers lost. I support workers which is why I oppose free trade. Unfortunately for those who support free trade, there are more workers than economic elites.

So free trade is on borrowed time.

 

This is why free trade is coming to an end.

 

So fvcking niave. You don't think protectionism has been tried and failed? Wake up, man. Doing away with free trade would decimate our poor. The only sure outcome of what you suggest is widespread poverty. You should be ashamed.

 

Would you be willing to elaborate on this one or qualify it perhaps.

I find that invariably historical arguments turn out to be identical to current day arguments with no clear and decisive outcome. Only the same vested interests all arguing the same positions. (And how undeniable their own position of course is, and backed by history and statistics and you get the idea).

 

That's not how it works.
Consumers don't pay higher prices, they change their shopping habits.

 

Depends on the available substitutes and elasticity of the product, please stop making absurd absolute statements about behavioral economics.