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Tariffs have benefits that are easy to imagine but costs that are hard to trace. When economists do the full analysis, the cost per job saved usually ends up b
by brownbat 8y ago
Tariffs have benefits that are easy to imagine but costs that are hard to trace.
When economists do the full analysis, the cost per job saved usually ends up being many multiples of the yearly salary:
http://www.aei.org/wp-content/uploads/2017/01/MFG-1.png http://www.aei.org/wp-content/uploads/2017/01/MFG-1.png
If you really want to understand the impact of tariffs, start by learning how to calculate "deadweight loss" and consumer and producer surpluses. There are a million YouTube videos on the subject, I think Kahn has one.
It's not something most people can grok in the time it takes to read a comment. Might take thirty minutes, or learning and thinking about it over the course of a week.
But it lead to a pretty profound eureka moment for me, I think it's worth understanding.