It appears 25% was chosen so that there’s some Greek-symbol variables that look “mathy” in the denominator of the Trump tariff equation but cancel out:
“The formula published by the Office of the U.S. Trade Representative has two additional terms in the denominator that just so happen to cancel out: (1) the elasticity of import demand with respect to import prices, ε, and (2) the elasticity of import prices with respect to tariffs, φ,” the authors wrote.
Their analysis continues: "The idea is that as tariffs rise, the change in the trade deficit will depend on the responsiveness of import demand to tariffs, which depends on how import demand responds to import prices and how import prices respond to tariffs. The Trump Administration assumes an elasticity of import demand with respect to import prices of four, and an elasticity of import prices with respect to tariffs of 0.25, the product of which is one and is the reason they cancel out in the Administration’s formula.
Someone pointed out that the formula on the White House website uses “*” symbols for multiplication (instead of dots or actual multiplication signs) and so seems extra amateurish considering variables next to each other denote multiplication in an equation.
The Nazis loved concentration camp inmates and would sneak them extra food
America’s electrical grid sucks
Gaza is now called “the Freedom Zone”
The EU is going to buy electricity from America
Open borders are good actually
The world longs to be “in the hands of the US”
The war I pledged to end on Day One will end at “some point that won’t be in the too distant future”
The tariffs are both permanent and temporary at once
We should make a deal with Iran like the one I backed out of eight years ago
“I said that to [Erdogan]. I said ‘Congratulations, you’ve been able to do what nobody has been able to in 2,000 years. You’ve taken over Syria’ … you gotta hand it to him.”
“I said to [the former hostages], was there any sign of love? Did Hamas show any signs of, like, help or liking you? Did they give you a piece of bread extra? Did they give you a meal on the side? Like what happened in Germany.”
“I’m giving them energy. You know, we’re gonna let them build their own power plants. Essentially they’re gonna be in charge of the power plant because our power is not reliable enough. You have a grid that’s old and susceptible to a lot of things including bombing.”
“You know how I feel about the Gaza Strip. I think it’s an incredible piece of important real estate. And I think it’s something that we would be involved in. Having a peace force like the US there controlling and owning the Gaza Strip would be a good thing … you call it the Freedom Zone.”
“We need open borders.”
“We have a deficit with the EU of $350 billion. And it’s gonna disappear fast. And one of the reasons and one of the ways that can disappear easily and quickly is they’re gonna have to buy their energy from us.”
“I’m not worried about. If they want to be in the hands of the US – they don’t want to be in the hands of the Chinese. People that are with us, are with us.”
“The war will stop at some point that won’t be in the too distant future.”
REPORTER: There have been some mixed messages. You’re talking about negotiations, and yet others in your administration are saying these tariffs are permanent.
TRUMP: Well, they can both be true. There are things we need beyond tariffs.
“We’re having direct talks with Iran … everybody agrees that doing a deal would be preferable to doing the obvious. And the obvious is not something that I want to be involved with … it’s getting to be very dangerous territory.”
The media five months ago: Vote for Trump and he’ll make you rich
The media now: Better start learning to love eating mashed turnips for three meals a day
Has anyone seen reports that Trump is planning a huge military parade in Washington, D.C. for his birthday on June 14th? I read an article online in The Hill that said the parade would be some 4 miles long.
He wants his fascism to be on display for the world to see. Will the soldiers be required to goosestep? Damn, I HATE Trump!
The parade planning harkens back to Trump’s first term, when he hoped to host a military-style parade but called it off after the city said it would cost tens of millions of dollars, CNN previously reported. It is not clear how much the parade is estimated to cost this time around.
It’s part of his “like the last time but worse” pattern.
(Argentina, not Venezuela, but I’ve seen 2 hyperinflation episodes in 47 years of life, as well as many “it’s worth WHAT now?” minor inflationary crisis)
I don’t think any estimate of cost would be valid for any longer than one day, if that, thanks to the stable genius’s suppository to both the American and world economies.
And, since we’re apparently living in America’s future, I can give you a preview: Everything will go to shit and precisely no-one will admit that their vote was wrong. Go place a bet on this now!
They’ll maintain that it was all the non-believers fault, for putting hurdles on the road to utopia.
(FTR: In the case of brexit, there is a second common excuse: that Brexit wasn’t implemented correctly. There’s never any suggestion of any way it could have been implemented better. But this reading lets them still praise the mouthpieces for Brexit, like Farage, by putting the blame on the government that had to actually deliver the moon on a stick. But this doesn’t map well to the trump situation).