But the US companies, because of the increases in the customer price for imported goods, can also raise prices, albeit at a rate lower than the imposed tariff. This price increase goes straight to the owners, directors and shareholders with no increase in costs, other than an advertising campaign to show their prices for US goods are lower than the imported products.

@Nick A little slow to comment on this but I agree on the face of this statement. However I take issue with "increase goes straight to the owners, directors and shareholders with no increase in costs".
If successful the increase in sales would logically cause a matching increase in production of the items resulting in more jobs, expanding capital investment in equipment and infrastructure, more payroll taxes, more sales taxes, an increase in employment demands pushing up the wages(cost of labor) to the owners/directors/shareholders.
That's called Capitalism.

Interesting underlining. If not "exempt":

@Clyde I find the word 'unclear' to be very disturbing at this stage in the case.

As to the authors of the Mueller report deliberately altering the text of a recorded phone conversation does not surprise me other than it was extremely STUPID! It further demonstrates the disdain held for The People by these elite appointed 'special investigators and prosecutors' and is amazing hubris to think no one would make the comparison.

The bomb will drop this month with the I.G. report on the FBI. That will lay a solid basis for General Barr to subpoena a lot of people to a Grand Jury.........including a former Secretary of State and a former POTUS if the trail leads there(maybe close but I don't think Barry is dumb enough to have been directly involved other than a 'wink and a nod').

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"Sour Grapes make a bitter Whine." <(0)>

With the significant price hike, would there actually be a significant increase in productivity at US plants?

With the significant price hike, would there actually be a significant increase in productivity at US plants?

Your model depicted a price increase to a level less than that of the imported product. Obviously the consumer would opt for the lower priced item. Another effect is the forced alternate sourcing of components for American made products, some local, some from other foreign sources than the tariffed countries.

I was alarmed yesterday with the disclosure of just how much of the U.S. pharmaceutical supply chain relies on Chinese sourcing. Both ingtedients and many generic drugs are produced there because it is cheaper. I'm sure the same is true for most other countries in the world. That the Chinese would weaponize that supply in a trade war is unlikely but a sobering realization.

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"Sour Grapes make a bitter Whine." <(0)>

If successful the increase in sales would logically cause a matching increase in production of the items resulting in more jobs, expanding capital investment in equipment and infrastructure, more payroll taxes, more sales taxes, an increase in employment demands pushing up the wages(cost of labor) to the owners/directors/shareholders.

Eye it is obvious your understanding of the concept of elasticity of demand would not pass an econ 101 class. Higher prices will result in fewer units purchased. How many fewer determines how elastic the demand is. The $ amount purchased may increase but that is a transfer of wealth and will not increase supply.

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If successful the increase in sales would logically cause a matching increase in production of the items resulting in more jobs, expanding capital investment in equipment and infrastructure, more payroll taxes, more sales taxes, an increase in employment demands pushing up the wages(cost of labor) to the owners/directors/shareholders.

Eye it is obvious your understanding of the concept of elasticity of demand would not pass an econ 101 class. Higher prices will result in fewer units purchased. How many fewer determines how elastic the demand is. The $ amount purchased may increase but that is a transfer of wealth and will not increase supply.

And the wealth is transferred to the Treasury, to pay for the tax cuts but the tariffs are more than double the tax cuts, so the consumer has even less money to spend. It is a vicious way to start a depression.

If successful the increase in sales would logically cause a matching increase in production of the items resulting in more jobs, expanding capital investment in equipment and infrastructure, more payroll taxes, more sales taxes, an increase in employment demands pushing up the wages(cost of labor) to the owners/directors/shareholders.

Eye it is obvious your understanding of the concept of elasticity of demand would not pass an econ 101 class. Higher prices will result in fewer units purchased. How many fewer determines how elastic the demand is. The $ amount purchased may increase but that is a transfer of wealth and will not increase supply.

And the wealth is transferred to the Treasury, to pay for the tax cuts but the tariffs are more than double the tax cuts, so the consumer has even less money to spend. It is a vicious way to start a depression.

And the U.S. has been riding a unsustainable financial bubble for the last 18mths so the longer that lasts the harder the fall will be.

If successful the increase in sales would logically cause a matching increase in production of the items resulting in more jobs, expanding capital investment in equipment and infrastructure, more payroll taxes, more sales taxes, an increase in employment demands pushing up the wages(cost of labor) to the owners/directors/shareholders.

Eye it is obvious your understanding of the concept of elasticity of demand would not pass an econ 101 class. Higher prices will result in fewer units purchased. How many fewer determines how elastic the demand is. The $ amount purchased may increase but that is a transfer of wealth and will not increase supply.

And the wealth is transferred to the Treasury, to pay for the tax cuts but the tariffs are more than double the tax cuts, so the consumer has even less money to spend. It is a vicious way to start a depression.

And the U.S. has been riding a unsustainable financial bubble for the last 18mths so the longer that lasts the harder the fall will be.

Considering the yield curve inversion it is coming real soon. Perhaps right about the beginning of the election cycle. As they say, "Its the economy stupid."

Gary, the scenero you paint is most unlikely as is the one Eye has posted is impossible. What will happen is another incremental change in in the wealth gap.

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Trump dispels urban myth

They’re sharp, they’re smart, they’re great. And they are brutal enemies. You have to keep them as your friend. Always keep them as your friend."
US President Donald Trump, on Irish people.

So, not dumb navvies after all. :-)

Gary, the scenero you paint is most unlikely as is the one Eye has posted is impossible. What will happen is another incremental change in in the wealth gap.

er, Forbes usually doesn't go into wild speculation ... https://www.forbes.com/sites/simonmoore/2019/06/04/three-assessments-of-yield-curve-inversion-none-are-encouraging-for-the-economy/#106682bf3c54

<ed>https://apnews.com/cd74d06a482a4f8ab55541bc1e401c93

From WaPo,

It’s (almost) official: The president of the United States is a liar.

A recent sampling:

● CNN: “The Mueller report: A catalog of 77 Trump team lies and falsehoods.”

● Minneapolis Star Tribune: “President Trump lies to troops about pay raise.”

● Financial Times: “The real reason Donald Trump lies.”

● Los Angeles Times: “Mueller report exposes all the president’s liars.”

● Chicago Tribune: “Why are Trump’s lies not ruinous to him? Because truth can be in the eye of the beholder.”

● The New Yorker: “It’s True: Trump Is Lying More, and He’s Doing It on Purpose.”

● Foreign Policy: “Does It Matter That Trump Is a Liar?”

Article titled - "Lies? The news media is starting to describe Trump’s ‘falsehoods’ that way." https://www.youtube.com/watch?v=nGE1b3Eephw

From WaPo,

It’s (almost) official: The president of the United States is a liar.

A recent sampling:

● CNN: “The Mueller report: A catalog of 77 Trump team lies and falsehoods.”

● Minneapolis Star Tribune: “President Trump lies to troops about pay raise.”

● Financial Times: “The real reason Donald Trump lies.”

● Los Angeles Times: “Mueller report exposes all the president’s liars.”

● Chicago Tribune: “Why are Trump’s lies not ruinous to him? Because truth can be in the eye of the beholder.”

● The New Yorker: “It’s True: Trump Is Lying More, and He’s Doing It on Purpose.”

● Foreign Policy: “Does It Matter That Trump Is a Liar?”

Article titled - "Lies? The news media is starting to describe Trump’s ‘falsehoods’ that way." https://www.youtube.com/watch?v=nGE1b3Eephw

.....and so 'Fake News' is calling the kettle black..........not unexpected.

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"Sour Grapes make a bitter Whine." <(0)>

....and so 'Fake News' is calling the kettle black..........not unexpected.

As I wish Donald Trump would be asked more often:

What specific "fake" stories qualify this oft-repeated statement?
What more reliable source(s) do you then propose?
What independent entities have validated they are more reliable?

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Amazing alternate reality.

....and so 'Fake News' is calling the kettle black..........not unexpected.

As I wish Donald Trump would be asked more often:

What specific "fake" stories qualify this oft-repeated statement?
What more reliable source(s) do you then propose?
What independent entities have validated they are more reliable?

Look, tariffs ... now watch this golf swing ... on intergalactic aliens will work! Believe me!
Some of my own SETIzens are going ... and they don't to be doing this! Terrible, I'll tell you that! ... against me.
Mitch McConnell, he's a good guy, except right now he's evil.
Isn't Ivanka so beautiful?
But, see, I just proved tariffs will work.

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Capitalize on this good fortune, one word can bring you round ... changes.

What independent entities have validated they are more reliable?

In this age of Opinion Media parading as Responsible and Professional Journalism.

Be critical of all. Even those who mirror your opinions.

Another non-answer.
I also try to care more about factual information than opinions.

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Sorry for what? The inability to provide the simple answer I asked for?

So, I provide an example of some Fake News from yesterday. It's from the White House's own official news feed, none of those lugenpresse, sorry, "Fake News" mainstream sources.

PRESIDENT TRUMP: Thank you very much, Prime Minister. I appreciate it. I very much appreciate the relationship we’ve had. It’s been outstanding. And I guess some people know that; some people don’t. But you and I know it. But it’s been, really, a very good relationship and I appreciate it very much.

We are your largest partner. You’re our largest partner. A lot of people don’t know that. I was surprised.

Yes, they don't know it because it is completely bloody incorrect: the U.S. is the U.K.'s largest trading partner, but the U.K. is behind China, Canada, Mexico, Japan and Germany in trade with the U.S.

Do you have any similar factual examples? If not I can find a few thousand more like this one if required.

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PRESIDENT TRUMP: Thank you very much, Prime Minister. I appreciate it. I very much appreciate the relationship we’ve had. It’s been outstanding. And I guess some people know that; some people don’t. But you and I know it. But it’s been, really, a very good relationship and I appreciate it very much.
We are your largest partner. You’re our largest partner. A lot of people don’t know that. I was surprised.

"So much for the special relationship, Mr Trump."
https://news.sky.com/story/fears-for-fords-bridgend-plant-as-car-giant-calls-meeting-with-union-leaders-11735694

Mr K. You don't understand the GOPer mind. The GOPer is convinced beyond any doubt that the Rump is the Messiah Incarnate. Therefore it is impossible for him to be incorrect. If he were to say the sky is day-glo pink; the sky IS day-glo pink. The scary part is that is not fake news.

The question the rest of us face is how many psychiatric beds can society afford.

"Germany's doing it again"