The Trump College Loan Plan

[Archer0915]

Just saw some of the Donald Trump college loan proposal! Well I am not going to say I completely agree with him but...


We bail out banks and Auto manufacturers! We give billions to other countries! We spend trillions on securing the world!
So if we actually did the math instead of criticizing the plan...


First one must understand economics and one must understand that Trump has a bigger plan!
So if the people (congress) will support him, here is what happens.


Manufacturing comes back, prices rise but so does the tax base. All that money going back to banks will, after 15 years, flow back into the economy! That means (If the manufacturing base comes back) there will be a big economic BOOM!


Every dollar spent will cycle through the economy being taxed multiple times! And unlike today where you pay a tax when you earn it, pay a tax when you spend it and ... out to China, Mexico, Korea...
By 2032 it does no go out to manufacturers in other countries!


So instead of the distributor and then to wherever (insert country) it goes:
Distributor pays a tax and moving up the chain
Manufacturer pays corp. Tax, Employees are taxed and they spend (tax back into the cycle)
Up and UP!
Component manufactures and raw material refiners taxed, employees taxed... Cycle!
Up and UP!
Raw material extraction taxed, employees taxed... Cycle!
Up and Up!
Equipment manufactured for all! taxed, employees taxed... Cycle!
Up and Up!
Service sector! Yes Service sector and external support structure! Restaurants opening to feed the employees at lunch! Small businesses opening to support the large manufacturer!...
Win, Win, Win!!!!

[Axiomatic]

Understanding economics would not lead one to support his knee-jerk protectionist plan to impose a 45% tariff on imports.

Any tax on imports will be paid by Americans in the way of higher prices for the goods they buy on jobs that still won't come back when foreign trade nations retaliate.

Any jobs that do somehow crop up in the wake of the choking off of otherwise freer trade simply cannot pay what you think they should and still be a result of a tax on American consumers(which is exactly what a tariff is).

Any products produced by those jobs would obviously be more expensive than they otherwise would be.

The result would be a decrease in real income, not an increase, and, very probably, recession and extended economic stagnation.

This is why you don't see economists, from any camp, willing to defend tariffs as a good thing.

[Archer0915]

Understanding economics would not lead one to support his knee-jerk protectionist plan to impose a 45% tariff on imports.

Any tax on imports will be paid by Americans in the way of higher prices for the goods they buy on jobs that still won't come back when foreign trade nations retaliate.

Any jobs that do somehow crop up in the wake of the choking off of otherwise freer trade simply cannot pay what you think they should and still be a result of a tax on American consumers(which is exactly what a tariff is).

Any products produced by those jobs would obviously be more expensive than they otherwise would be.

The result would be a decrease in real income, not an increase, and, very probably, recession and extended economic stagnation.

This is why you don't see economists, from any camp, willing to defend tariffs as a good thing.
I am so glad you understood and addressed my post. It is awesome how you commented on what I said about a tariff! Great!

So do you have a comment on my post? Perhaps start your own thread?

[Axiomatic]

I am so glad you understood and addressed my post. It is awesome how you commented on what I said about a tariff! Great!

So do you have a comment on my post? Perhaps start your own thread?

Fair enough. I didn't read the whole thing. I've just been reading on his economic proposals recently, and those stupid tariffs are stuck in my mind. When I read

Manufacturing comes back, prices rise but so does the tax base. [...] unlike today where you pay a tax when you earn it, pay a tax when you spend it and ... out to China, Mexico, Korea...
I couldn't help but think you must have been touting his trade policy as a good thing.

[Archer0915]

Fair enough. I didn't read the whole thing. I've just been reading on his economic proposals recently, and those stupid tariffs are stuck in my mind. When I read

I couldn't help but think you must have been touting his trade policy as a good thing.
This needs analysis! Just jumping in with an arbitrary tariff is not wise. Remember we are talking about a business man!

Know what you are willing to accept but start out with an unreasonable proposal! The other guy walks away from the table feeling he beat you down and you get exactly what you wanted.

My post is off topic though.

I just think the college loan plan has merit.