Consoom tariffs
(youtube.com)
New here?
Create an account to submit posts, participate in discussions and chat with people.
You are viewing a single comment's thread. View all
Toast message
Tarrifs are DOMESTIC PROTECTION FOR PRODUCTION. The cost IS paid by the consumer, raising the prices. Yes. Thats the point.
A HIGHER COST TO CONSUMER means a wider opportunity to increase domestic production as competition in the market. It allows domestic manufacturers to compete against lower wage costs from overseas.
It improves DOMESTIC PRODUCT and increases LOCAL ECONOMY. Its not a negotiating tool. It's not a sanction threat. It's not a tit for tat. It is a sound economic REQUIREMENT for strong internal industry.
It's trade protectionism meant to create a greater competitive advantage for local producers. Imported prices too high means you buy domestic, which keeps money in the U.S. and creates more opportunity for local business.
You got it right on.
If you have good production locally, there's an incentive to buy local.
If not, customers are paying more *and* making do with less.
Tariffs won't help unless the useless foreign workers and the labour unions get dealt with.
No. Not "if not". In a country like the U.S. there is ample means of production. The problem is cheap foreign goods flooding the market which disincentivizes local production.
Tariffs should only be used as a "negotiating tool" of "tit for tat" to keep other countries in check with their dumb tariffs and pseudo-tariffs.
A "strong internal industry" does better with the supplement of actually being able to export.
If one supports America raising tariffs against countries with lower tariffs, one either thinks America is incompetent at competing or tacitly admits the American worker is paid too much.
E: To go even more absurd, why stop at countries? Shouldn't US states apply tariffs against other states? Cities, townships, and counties can jump in too. Perhaps even families so that father has to make all the products for his family so that we can have an extremely strong "local economy" everywhere.
This is 5th grade level economics. It isn't hard to understand. Companies move SUPPLY production to the most ECONOMICALLY PROFITABLE PLACE, and can only sell where DEMAND is. They don't care if it's made in Taiwan or Toledo Ohio, as long as it makes the best fiscal sense. If you don't have high demand, then you don't matter, but WE DO. No company in the world wants to lose America as a customer, and if they do decide to maintain foreign production, then a new company WILL be founded domestically to compete because there will be DEMAND for their SUPPLY.
It isn't specifically to "help us"
It does raise the cost of foreign products, and that simultaneously pushes down demand (furthering anti-consumerist behavior, something we probably agree is a good thing) and it can in some cases create situations where domestic demand for products and employment in related industries is increased marginally by the prices of foreign products becoming more expensive artificially.
If trump was our guy, he would put a 10,000% tariff on everything and we would go full Juche, which is what we should have been doing the whole time.