4 ms·
i'm with you that a tariff scheme is better than giving money to large corps, which always puts money in the pockets of the already rich rather than into creati
by clairity 4y ago
i'm with you that a tariff scheme is better than giving money to large corps, which always puts money in the pockets of the already rich rather than into creating customer surplus and driving innovation. there is a (mostly front-loaded) cost, but there is also a clear net benefit in the long run. the tariff scheme just needs to be graduated (both on and off) and based on industry milestones. if it isn't ramped down as soon as feasible, then it becomes a overly-depended-upon subsidy and a market distortion masking price signals instead.
because we know there is a large and likely growing demand for semiconductors, it's not a very risky bet for us to be subsidizing it via trade restrictions for some finite amount of time.