Economic Update: The Political Economy Of Tariffs

[EU S14 E23] The Political Economy Of Tariffs

In this week’s Economic Update, Professor Richard Wolff devotes the entire program to an analysis of tariffs. We discuss why tariffs are not a worker's issue, why capitalism's continuous swings between free trade and protectionist periods and phases make little impact on workers, and why competing capitalists seek to get workers to support their positions on tariffs.

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[leekianseng]

Excellent. Professor Wolff explained the topic of tariffs very well. The American consumers are the true suckers, having to pay more unnecessarily. Sad the government is doing a disservice to their own people. 🙄☹

[leecheong]

Fisker, an EV start up in USA just applied for bankruptcy. So much for tariff protecting jobs.

[kellyray]

Reduce the main reason for the over inflated prices to begin with. Bring down all of the over inflated salaries of every single executive in every corporation in the US. That will lower prices almost instantaneously.

[sangm]

Tariffs also lead to trade wars. With US placing 100% tariffs on electric vehicles from China, it stands to reason that China will come up with their own tariffs as punishment like buying more agriculture products from Brazil, etc.

[hipCaptain]

Hi, just wanted to say how much we appreciate you. Keep up the good work.

[tedpop]

DR Wolff, the distaste in simply the movements of your mouth is palpable, and I love it.

[kianleyon]

Thank you Dr, Wolff you are an amazing human being. I learn so much everytime I watch your show.

[lingth]

It's not like the American consumer can do something about it, Biden or Trump either one will slap tariffs anyway.
By denying cheaper Chinese made products, this time it's EV, and then DJI drones etc .. industry who use them have to buy American made ones at a higher price, and raise their operating costs and pass the cost on to consumers..

[MatewanMassacre]

That's what a lot of our people don't understand - that the capitalist ruling class is not monolithic, there are sharp divisions amongst them.
We see this reflected in mainstream bourgeois politics. The Democratic Party represents one faction of Capital; and the Republican Party works for another faction.
In the case of the Democrats, it's the long-noted 'Eastern Establishment, ' the Old Money, Finance and Investment Capital, the famous "60 families" of the Northeast. The infamous 'Robber Baron' families of the 19th and early 20th centuries. In essence, the Democrats represent Monopoly Capital.
Meanwhile, the Republicans work on behalf of New Money, which sprang up in the Southern and Western parts of the country, in the wake of WW2. They're largely indebted to the aerospace industry, the defense contractors (who spread their blessings evenly), agribusiness, land speculators, real estate, box store chains, and gambling casinos. The GOP is the party of what was called 'The Sun Belt' back in the 1970's and 1980's, where the new Southern Rim establishment has taken root. They aren't as wealthy, or as seemingly investment saavy, as the Old Money cartels; and many of them are individual capitalists whose portfolios aren't as diversified as someone whose last name might be Morgan, Chase, Rockefeller, Ford, or DuPont.

So, these parties sometimes have major disagreements, but most of what they fight over has little to do with the common interests of the American People.
One group wants to maintain and expand its monopolies, and the other sect wants more and more accomodation, from the government and the people, so that it can expand its wealth and influence, some day to join the monopolists, at the top. Of course, there is crossover, and cross-filtration, amongst these factions of Capital, which is why the entire political establishment is often referred to as, 'the uniparty.'

[albertcadgame]

one question prof.
Why is it that an engineer required a degree, master or PHD to apply for an engineer job. Whereas the HIGHEST POST in the country is the president post which do need any proper education to apply for it. Tom, Dick and Harry can apply for that post ? Why is that ?
A good example is the Ukraine president whose job was a comedian and now he is the president of Ukraine !!!

[idofdm]

I'm American by citizenship, I will simplify to one word "superiority complex", I must admit for the longest time they were superior, they used that superiority on good also bad purpose in the name of national interst meaning we win you lose selfish interest!
Many countries see through the bad side now and seek alternative to so-called US leadership in the world! My government will keep pursuing same policy until our society devolved in to a state of despair, we are on our way, then people will rise up and call for changes, not happening any time soon, may be 10-20 years from now! By then I may be living outside of US😢😢😢

[helengarrett]

Trump is nuts. Tarriffs instead of income taxes? We might wish to keep all the income we earn, but we just cannot provide all the protections and services the government must provide without some source of revenue coming in.

Trump has floated the idea to replace one tax, income tax, with a tarriff on imported goods. But tarriffs are regressive taxes. That means it's harder for lower and middle wage workers to pay the increased prices for imported goods. Think about it.
Almost all electronics are produced outside the United States. Most car parts for American cars are produced abroad too. Produce and meat are imported too. Everything is globalized now and prices are gonna go up for everything. Need furniture? Most of the less expensive furniture sold in America is now made in China..Ikea goods comes from abroad too!

Meanwhile, the wealthy will save an enormous amount on corporate and personal income taxes. That's what a regressive tax means.

You won't be keeping more money but you would be told you were saving all of those income taxes. It's propaganda for the gullible.

[kobked-x]

Professor, you should hook up with Scott Ritter, Colonel Douglas McGregor, Judge Napolitano, Gerald Celente - Trends Journal and this YT show, Daniel Davis -Deep Dive. They have a great Project, Waging Peace in a nut shell. I highly recommend them as allies for the cause of changing the world from a war based hell pit back to a real life normal.

[barnabusdoyle]

American manufactures need stiff competition to keep their vehicles up to par. We need to let China sell their EVs here in the US without the tariffs and force our automakers to drop the price of their cars to compete.

[elcmu]

China couldn't compete with ICE so they focused in NEV and it's not as if they kept it a secret. They have products that benefit the world that create less noise and air pollution and can easily be adopted through competitive pricing. Instead of tariffing maybe we should ask what will be the technology that supersedes EVs.

[ewalker]

Now less wine will be sold in America. Less demand for the over taxed wine. creates shortages thus higher inflation. US goods are three to four times higher in prices than the same goods imported from China. Fewer purchases, production jobs disappear.

[godfatherofcinema]

Great show Mr. Wolff but they have a EV in China that is better than a Tesla for $10, 000 that we are not going to have access to because of the tariffs thank you very much for the breakdown

[taffyandbeanz]

Tariffs also make industries less competitive in the world market

[frankfower]

And the American People Pay for the Tariffs: it’s the Consumer Price going up and we the people Have to pay more to get less:
The foreign producers Don’t pay the tariffs: people here pay the tariffs
It’s that simple

[suichingyuen]

Another consequence of the tariff is that the US manufacturers do not need to improve so products are inferior and the production process is inefficient.