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I could see such a mechanism making sense while a low-wage country gains experience to achieve productivity (measured in output / labor cost). But what would t
by IAmEveryone 9y ago
I could see such a mechanism making sense while a low-wage country gains experience to achieve productivity (measured in output / labor cost).
But what would the US be gaining during this time of protection? It cannot make the sort of productivity gains a developing economy can.
I don’t know enough about these tariffs on China to offer judgement, and it may depend on the details. The stated rational mentions IP rights, so it may actually be more sensible than the alu and steel tariffs which seem rooted in some 1950s worldview.
But sometimes politics trumps economics. Turning your relationship with Canada and Mexico into a zero-sum family brawl will without a doubt lead to a breakdown in trust that will haunt North America for decades.
And for what, exactly? Selling a few more cars when unemployment is already at a record low?