4 ms·
Well, yes, that's the point: it doesn't matter who pays up front, it affects the supply/demand equation, typically hurting everyone. Regardless of where I am i
by fatbird 2y ago
Well, yes, that's the point: it doesn't matter who pays up front, it affects the supply/demand equation, typically hurting everyone. Regardless of where I am in the chain, I'm not going to run at a loss and hope to make it up in volume.
- jgalt212 2y agoIt doesn't hurt the government, though. The first order effect is new tax revenues they don't have to source elsewhere.
- fatbird 2y agoAs you pointed out, demand will drop, so there's fewer sales, and it drives inflation, slowing the economy, leading to (ultimately) a reduction in revenue all around. Also, it's basically a heavy sales tax, since it's through purchasing that's it's implemented, and sales taxes are always regressive (the poor spend all their money on consumables, the rich spend only a portion, so the poor pay more proportionate to their income). There's a reason no economist these days is in favour of tariffs.