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Cake day: June 30th, 2023

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  • Jordan117@lemmy.worldOPtoPolitical Memes@lemmy.worldIt's Greek to me
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    1 year ago

    White House publishes a table of steep percentage fees charged on imports from various countries that make little sense, claiming it’s based on a rigorous and complex system of economic calculations

    Somebody notices the percentages for all these countries are just the trade deficit divided by imports, which is a formula as simple as it is arbitrary

    White House lackey says “Nuh uh, we have a totally complex formula for this” and publishes an imposing equation full of Greek symbols and letters

    Turns out the Greek symbols refer to arbitrary values set by the White House that cancel each other out, and the letters just represent… the trade deficit divided by imports.

    tl;dr: They used a dead-simple, arbitrary formula for their economy-wrecking trade war and tried using fancy-looking math to cover it up


  • Jordan117@lemmy.worldOPtoPolitical Memes@lemmy.worldIt's Greek to me
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    1 year ago

    Direct from USTR.gov:

    To calculate reciprocal tariffs, import and export data from the U.S. Census Bureau for 2024. Parameter values for ε and φ were selected. The price elasticity of import demand, ε, was set at 4.

    Recent evidence suggests the elasticity is near 2 in the long run (Boehm et al., 2023), but estimates of the elasticity vary. To be conservative, studies that find higher elasticities near 3-4 (e.g., Broda and Weinstein 2006; Simonovska and Waugh 2014; Soderbery 2018) were drawn on. The elasticity of import prices with respect to tariffs, φ, is 0.25. The recent experience with U.S. tariffs on China has demonstrated that tariff passthrough to retail prices was low (Cavallo et al, 2021).



  • Tbh, I block ads when I can but have a hard time getting angry about this. YouTube is both incredibly useful and incredibly expensive to operate – seriously, what other service lets you upload hours of HD video which anyone in the world can access instantly, indefinitely, for free, and at the same scale YT does? It’s a peerless engineering marvel and it would be a tragedy if it were to shut down. If seeing some short skippable ads is what it takes to keep that resource viable, that’s honestly pretty fair.