Tuesday, July 11, 2006

Supply Side Shock

I knew in the back of mind that this was coming, but I had no idea it would be so soon:

President Reagan negotiated a "voluntary" import quota on Japanese cars sold in the United States during the 1980s. Some of his advisors had recommended that he impose a higher import tax (tariff) instead. Assuming the tariff was in the form of a constant tax T per Japanese car sold in the United States and that T was chosen to produce the same quantity reduction as the quota, how will the prices paid for Japanese cars by U.S. consumers compare under the two policies?


I hate Reagan. I hate his Building, I hate his library, I hate his airport, and now I hate this textbook. Hate hate hate.

6 comments:

the Alpha John said...

Justin: I'm warning you now. If you comment, I'm deleting it. There is no room in this post for your filthy, Reagan-loving sarcasm.

Justin Wilson Reagan said...

What did I do??? Oh the voices......oh.....how they scream.....

Anonymous said...

Oooooooo. Justin didn't listen. His brain must not be as big as his penis.

HeeHee. ~J

the Alpha John said...

Wrong Justin kiddo. This is "Heavy Metal Reaganomics Justin", not "Nice Pants, Tripod" Justin. :)

Justin said...

Also "Gun control is being able to hit your target" Justin.

Anonymous said...

But hey,if it wasn't for Reagan,we wouldn't have George Bush! Hahaha

G-spOt