Economics Thread

nsacpi said:
There is no doubt that China is more vulnerable to a tariff war than the U.S. And we are now seeing evidence of that. But the whole idea of winning a trade war is problematic. The "winning" side ends up being dragged down.

The right way to look at it is that trade is a win-win proposition for the most part. And trade wars are lose-lose. We need to be firm in areas (like protection of property rights) where China is a bad actor. But this tariff war approach is looking more and more counterproductive. And could trigger a global downturn.
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This is exactly right. China has a greater incentive to come to the table, but in the meantime we see companies like Apple that do enormous business in China that are getting pummeled and now the Dow is down 500 points.

Trump is washing out the only accomplishments he’s made with this silly approach to foreign policy and trade.
 
Further - what indications are there that Apple changed their revenue guidance for Q1 based on tariffs?
 
Krgrecw said:
Tariffs. Had nothing to do with it. Apple misjudged the demand thier new iPhones throughout the world.
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I hope in general that the populace stops falling for minor upgrades for the low cost of $1,000. Our spending habits are foolish and people would be better off if they didn't get the new model of a smartphone every year.

I for one am glad that apple is tanking. Sucked money out of America by taking advantage of child labor in East Asia.
 
nsacpi said:
Thanks for the article. It is over five years old. I was wondering if this was an ongoing issue.
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To be fair i never intimated it was a current issue. Either way, apple is a prime example of everything that is wrong with what capitalism has perverted into.
 
thethe said:
To be fair i never intimated it was a current issue. Either way, apple is a prime example of everything that is wrong with what capitalism has perverted into.
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The dude sitting in the Oval Office that you worship is a shining example of everything wrong with the perverted capitalism you speak of
 
thethe said:
I hope in general that the populace stops falling for minor upgrades for the low cost of $1,000. Our spending habits are foolish and people would be better off if they didn't get the new model of a smartphone every year.

I for one am glad that apple is tanking. Sucked money out of America by taking advantage of child labor in East Asia.
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All companies use as much Chinese child labor as possible. You don’t want Apple to tank. It has control over the whole market
 
thethe said:
To be fair i never intimated it was a current issue. Either way, apple is a prime example of everything that is wrong with what capitalism has perverted into.
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Besides a report you cited (where Apple uncovered child labor internally btw), in what ways have they perverted capitalism?

Weird comment to make about the most successful company in history.
 
chop2chip said:
Besides a report you cited (where Apple uncovered child labor internally btw), in what ways have they perverted capitalism?

Weird comment to make about the most successful company in history.
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Im sure they seld identified all by the goodness of their heart. As if they didnt know who they were gettijg in bed with when they signed their agreements. All of a sudden the most successful company in history didnt do effective due dilligence?

These massive companies act as restrictions of capitalism because they destroy competition. We now have such large barriers to enter msrkets for other companies we have de facto monopolies. There is no competition.
 
chop2chip said:
This isn’t correct. Apple set sales record in non-Chinese markets. This is specifically a China/iPhone concern.
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It was a demand issue in their projections. Plain and simple. It had nothing to do with costs to create or projected sales price. The sheep line up for days to spend whatever it costs. Finally the fad of the smart phone is starting to fade.
 
thethe said:
Im sure they seld identified all by the goodness of their heart. As if they didnt know who they were gettijg in bed with when they signed their agreements. All of a sudden the most successful company in history didnt do effective due dilligence?

These massive companies act as restrictions of capitalism because they destroy competition. We now have such large barriers to enter msrkets for other companies we have de facto monopolies. There is no competition.
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competition by producing better and cheaper products is what drives growth....there are other forms of competition that are predatory and run afoul of antitrust law...the distinction is worth keeping in mind
 
thethe said:
Anyone care to comment on this?
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since you asked so nicely I will simply observe that history provides us with many examples of trade agreements that have been arrived at through a variety of negotiating tactics...I assumed your question was a rhetorical one but I guess not
 
nsacpi said:
since you asked so nicely I will simply observe that history provides us with many examples of trade agreements that have been arrived at through a variety of negotiating tactics...I assumed your question was a rhetorical one but I guess not
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Your assumption is that in these scenarios that both parties are acting in good faith. You have already stated that in some cases China is a bad actor. I think that many of their actions have proven to show they demonstrate this disposition in many other areas.

There is no way that keeping the status quo would have ever brought China to the table. Now their economy is suffering much more than ours because of the tariffs so they are left with no choice. Their hold on power is predicated on ensuring their people are not suffering. They see the writing on the wall and the more pressure we put on their economy the more we will get from them at the negotiating table.

This is not difficult to see.
 
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