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I think it fair to say that there are both problems and benefits. Our steel and aluminum tariffs are resulting in more jobs in steel and aluminum. On the other
by grigjd3 8y ago
I think it fair to say that there are both problems and benefits. Our steel and aluminum tariffs are resulting in more jobs in steel and aluminum. On the other hand, it is resulting in fewer jobs that treat steel and aluminum as the raw product. So this impacts production of nails, buildings, ships, cars, airplanes, and a ton of things I don't have the space to list here. This is well before we even get to the inevitable response from China, Canada and Europe which has impacts like this, leaving farmers unable to sell their crop.
So yes, there are more steel and aluminum jobs. But in hand there are also less jobs in farming, building construction, ship building, nail manufacture, and plane manufacturing. So the question becomes what do you value more, people working a smelter or people building airplanes, etc. Well, most people who study this have found that the effect of protectionism is fewer jobs overall and higher prices.
You can choose to disbelieve this and irrationally point to 19th century economies as a counter example while refusing to acknowledge that many factors are always in play and trade is one of them, but this is the argument being made.