Who Pays for Tariffs Explained by the Shirt Off Your Back. Whether you are a fan of tariffs or not, it could be useful to discuss how they influence the price you pay for some simple item, like for instance, an inexpensive polo shirt. First, we need to know something about calculating retail prices. If you don’t give a damn about calculating retail prices, skip the next four paragraphs*. *Retailers usually determine the retail price of something they sell in terms of the markup , which is the amount added to their cost for the item. That markup is usually expressed as a percentage, and a common markup for items such as polo shirts is 40%. However, the base for that percentage markup should NOT be the cost of the item. Rather, it is almost always the selling price. Here’s why: *Suppose a seller’s cost for a package of underwear is $6.00 and he bases his 40% markup on his $6.00 cost. Calculating 40% of $6.00 produces 40% X $6.00 = $2.40. Add the $2.40 to $6.00: $2.40 + $6.00
Caveat: IANAL, I am ignorant of the law, however, I know a little about statistics and testing hypotheses. On one hand: Suppose we are confronted with making a decision based on limited data; most real world data is incomplete. Consider, for example, the charge that Ted murdered Jack Our legal system doesn’t require that jurors be omniscient. It only requires that jurors begin by assuming that Ted is Innocent until Proven Guilty . In more precise language, jurors should begin with the hypothesis that Ted is not guilty as opposed to the alternative that Ted is guilty . Jack is guilty is not a reasonable alternative hypothesis. We do not test whether Ted is innocent versus Ted is not innocent . If the reason for this is not immediately obvious, I hope it soon will be. The jurors examine the presented evidence, and ideally without bias, evaluate the accumulation of evidence and arguments. If the accumulated arguments and evidence presented by the prosecution persuades the jury