this post was submitted on 23 Nov 2024
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[–] [email protected] 17 points 1 day ago (1 children)

No, the first page is how it introduces inefficiencies into a supply/demand equilibrium, resulting in a lower quantity supplied and at a higher price.

No one who every studies economics, even in passing, would even consider another country paying a tarrif for something you buy. The concept is just.... what?

[–] [email protected] 4 points 17 hours ago (1 children)

Yeah, the, misguided, idea is that the increase in price from imports will drive domestic production, of those things, as the high prices reduce demand, and cut into profit margins. This used to be something that was a sensible assumption of what would happen. However the contemporary world has far too much infrastructure for tariffs to truly work like that any longer. It will, usually, be cheaper to increase the costs for the tariffs, than to restructure back to domestic production.

[–] [email protected] 1 points 8 hours ago

It could drive up domestic production, however there us a good reason we import, which is similar to your last point.

Bad example, but its the same reason you "import" Mexican workers - their skills and work ethic, along with willingness to work long hours for low wages. You aren't going to get hundreds of thousands of Americans to decide to work in a sweat shop, or on farms, or doing handyman work for the same wages.

I was going to mention the low cost of a life in China, and the lax H&S, ethic and environmental regulations, but America is trending that way too.