2 ms·
Free trade benefits all parties except for the people who previously benefited from the redistribution of wealth/income that that the tariffs effectively caused
by doubleunplussed 10y ago
Free trade benefits all parties except for the people who previously benefited from the redistribution of wealth/income that that the tariffs effectively caused.
We've opened up free trade, and gotten rid of many hodge-podge, patchy tariffs, but we haven't replaced the wealth/income redistribution with anything else. The tax system is now less progressive than it was.
Every tariff removed should have had the government income it represented replaced with an increase in some other broad-based tax to compensate. Otherwise you're not just making the system less patchy, you're actually just taxing less, and lower taxes generally means worse income and wealth inequality.
So tariffs are a terrible idea, but I think no tariffs at all can be worse. I'd rather have a patchy inconsistent push against rising wealth inequality than none at all.