4 ms·
Tariffs = bad, see https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act 1 Business lobbies to get op
by king07828 9y ago
Tariffs = bad, see https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act https://en.m.wikipedia.org/wiki/Smoot–Hawley_Tariff_Act
1 Business lobbies to get oppressive tariffs promising it will spur innovation
2 Tariff passes, business market value rises because of reduced competition
3 Business stops innovating because there is no foreign competition
4 Business shares stagnate without innovative product line because there is little need to innovate
5 Business lobbies for higher tariffs, repeat from step 2
It can be argued that tariffs are little more than Pyrrhic victories for the industries involved that hold back the nation as a whole and create a downward spiral
- jacknews 9y agotariffs on their own are not necessarily productive, they have to be used in conjunction with policies that spur domestic competition. But most developed nations appear to have gone through a protectionist phase when building their industries, and often beyond, either by imposing tariffs on imports or subsidizing exports, manipulating the currency, providing cheap credit, fat government and military contracts, etc, etc, and that includes America. And it most certainly applies to China now. Tariffs and other policies should be designed to balance subsidies, eg the effective postal subsidy for Chinese goods (I use the term loosely, in many cases) delivered to American homes.