>>1398276You didn't address the point I made at all. Yes, the elasticity and passthrough rates (assuming accurate estimates) are supposed to account for reduction in demand from import price rises, thus setting the revenue from tariffs to be equal to the trade deficit. Those were the adjustments I mentioned. But insisting on having no deficit (after tariff revenue) at all with any individual country is ludicrous and makes no sense, like I explained. Is Cambodia systematically ripping the US off by being too poor to buy foreign goods and making cheap shit? These tariffs will ensure incredibly high consumer prices and saying 'just make nearly everything at home' is simply unrealistic.
>twitter theoriesI've never used that, but consider why economists universally advise against this, and why the party you probably support has been pro free trade for decades. NIneteenth-century autarky isn't a viable strategy for a modern developed country.
