4 ms·

Isn’t this at least one goal of setting appropriate controls such as tariffs?

• genjii931 3y ago
  Raising the price of imported goods via tariffs is designed to make domestic products comparatively price-competitive. Once you've driven all of your manufacturing offshore, tariffs won't work. While there are a few toolmakers left in the US, there are, for example, no cellphone makers, etc.
  • avar 3y ago
    No, it doesn't matter that there's no domestic manufacturing of X today. If you put a sufficiently high tariff on X you'll get it made locally sooner than later. Tarrifs are crude but very effective centrally planned price signals.
  • dredmorbius 3y ago
    Use of protective tariffs to shelter domestic production whilst developing that production capacity is in fact A Thing, and is actually a principle component of what is known as the American School of economics, which strongly influenced US economic policy from the 1790s through the 1970s, and had as a chief proponent Friedrich List (1789--1846). A modern proponent is Ha-Joon Chang, particularly in his books Kicking Away the Ladder and Bad Samaterians. <https://en.wikipedia.org/wiki/American_School_(economics) https://en.wikipedia.org/wiki/American_School_(economics)> <https://en.wikipedia.org/wiki/Ha-Joon_Chang#Kicking_Away_the_Ladder https://en.wikipedia.org/wiki/Ha-Joon_Chang#Kicking_Away_the...>
• billfruit 3y ago
  It will drive price of goods upwards for consumers though.