The simple explanation of Trump's customs war. Economist: “Why a liter of gasoline in the US is 3.82 lei, and in Romania – 7.24 lei?”
Starting from two simple examples, the same imported car costs 40% more than in the USA, and the price of gasoline is almost double with us, the economist Radu Georgescu explains the purpose of the US Customs, Donald Trump.
The customs war started by Trump leads the world to recession. Photo: Profimedia
“It is just the economy, stupid” (“It's just economy, fool”). This is the slogan in which Bill Clinton won the 1992 elections against George Bush. This slogan has remained in history and is used in all campaigns in America. This slogan says that on the planet Earth, people vote with one eye in the wallet and an eye on the list of politicians. People are interested in first and foremost if they have money to maintain their children and family“, Georgescu says on Facebook.
The same slogan used Donald Trump at last year's elections. The first point in Donald Trump's economic plan, a plan with which the elections won, was, explains the economist: “>..
“How? The economic plan in the campaign was not a lie?”the rhetorical economist asked. “No. It was not. The door has the lowest form of trade and consumption on the planet. The door does not have VAT. The door has no excise duties. The door had the lowest customs taxes. For this reason all the prices in the door are lower. Even compared to Romania”he replies.
Why is more expensive gasoline in Romania
Georgescu explained why the same car in Romania is more expensive by 40% compared to US. He gave the example of a Honda CR-V: “In Romania it costs 45,000 euros. In US the same car costs $ 32,000. How do you?”
The economist explained: If you bring to Romania a car produced in the US you will pay in Romanian customs of 19% and 10% customs duty. So you will pay taxes worth 29% of the value of the car (VAT is paid for customs duty, but for the ease of understanding I put 29%).
If you import into US a car that is not produced in the US you do not pay VAT, he said. US has no VAT. The customs duty in the US was 2.5%, and Sales Tax is between 0-8%.
“So you will pay taxes worth a maximum of 10% of the value of the car. I guess you understand that it is not economically correct to happen, ”,,” he says.
Georgescu also spoke about the price of gasoline. In the US, the price was $ 0.85 / liter, ie 3.82 lei. “This price also includes Sales Tax of 4%. Sales Tax is the only consumer fee in the USA”, Explains the economist. The liter's liter in Romania was 7.24 lei.
So we pay gasoline 90% more than Americans?
“The door has no VAT and no excise duties ”replies the specialist. He is surprised by the fact that some Romanians do not say:
“– Baths of the brothers
– But why do we pay VAT and excise duties?
– Why don't we have gasoline 3.8 lei like Americans? ”
Not
These people say
” – Evil Americans. Very bad.”
“The Americans want to put on the products imported in the US the same level of taxation we have in the EU/ Romania. You can beat me, but I do not understand this logic.”he says.
The purpose of the war war
Georgescu explains the meaning of all what happens these days:
“Americans say so now:> It's just economy. Americans will not give back. The Americans want to change the current economic paradigm ”.
The Americans want to produce again in the USA, they want the US companies to return to the USA.
“The Americans were tired of the Chinese who stole them in 40 years all the know-how in American factories that were producing in China and now they produce cheaper, using American technology. It will be a radical change in the economy“, Georgescu shows.
He believes that the current generation has grown at the time of globalization and printing of money without number. “This era ends. We return to the origins of liberalism. Through ourselves. Have you prepared you? ”he concluded.
