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Better is to use it to subsidise other imports for which the import country is a price taker. The classic one would be oil and gas. Import tariffs free up impor
by hgomersall 3y ago
Better is to use it to subsidise other imports for which the import country is a price taker. The classic one would be oil and gas. Import tariffs free up import space which should be used wisely.
- somethoughts 3y agoWould be curious to hear more as I'm not sure I quite understand. I think the proposal seems like a more conventional proposal which seeks to maximize classical measures like overall global economic productivity and ignores the general domestic populace. It seems like that using import tariff duties to subsidize more imports would encourage more importation of goods by lowering the final cost to the end user. It would also likely just directly benefit the domestic importers and the foreign exporters. It would also further exacerbate the differential over domestic producers and domestic alternatives and do nothing to prevent economic/labor regulation arbitrage.
- hgomersall 3y agoIt's explicitly about stabilising prices of necessary goods for which a country is a price taker. Using luxury goods to stabilise the prices of necessary goods. Here's an analysis that raises it in the context of the broader problem: https://new-wayland.com/blog/the-uk-energy-crisis-mmt-analysis/ https://new-wayland.com/blog/the-uk-energy-crisis-mmt-analys...