Teaching Economics

Unfortunately, I had the distinct displeasure of talking to a guy on the job site who started our visit by telling me that the tariffs are a stroke of genius.

“There’s going to be a lot of extra money flowing through the country,” he said.

“Where is the money coming from?” I asked.

“Other countries paying the tax,” he answered.

“So, they send us veggies that they were going to sell here for $10. They get hit with a $5 tax to sell the veggies here. Do you think it will still cost $10 when you buy it?”

He looked at me weird.

“The ten-dollar vegetables will be sold to you for $15,” I said.

“I don’t have to buy them!” He said confidently.

“Well, where are all your billions coming from?” I asked.

He looked confused.

“Here’s what will happen,” I said. “Either they will stop sending goods here, or the consumer will pay more for their goods.”

“Maybe,” he said. “We just have to grow the veggies here.”

“Sounds good,” I said. “Who’s picking the vegetables?”

“They’ll get picked.” He said, and I could tell he was getting a little pissed.

“Our cheap labor is being deported,” I said.

“No, no, no,” he said. “He’s only deporting criminals.”

I laughed.

“It’s going to be raining money on your head,” I said.

“He wouldn’t be doing tariffs if they didn’t work,” he said.

“Look up the last time we tried it,” I said.

“It’s never been tried!” He yelled.

(He was definitely pissed).

“It was,”  I tried. “We even named that period of time.”

“What was it called?” He asked.

“The Great Depression,” I said, and walked away.

Doesn’t make any difference…

…he won’t believe me…

…it doesn’t fit his agenda.