Conversation at lunch yesterday:
- “Was there any sensible economics in the debate?”
- Venky: “That’s the world’s worst drinking game, drink when someone makes sense.”
- Ruhl: “I think Rubio said something sensible about tariffs”
Here’s the relevant excerpt from the transcript (lightly edited, emphasis added):
CAVUTO: So you’re open to a tariff?
TRUMP: I’m totally open to a tariff.
RUBIO: I think we need to be very careful with tariffs, and here’s why. China doesn’t pay the tariff, the buyer pays the tariff. If you send a tie or a shirt made in China into the United States and an American goes to buy it at the store and there’s a tariff on it, it gets passed on in the price to the consumer.
If we were picky, we’d say something about the slopes of the supply and demand curves, but this is close enough to take a drink.