3 ms·
Many governments do things that are economically inefficient, for example imposing tariffs to protect industries.
by Bostonian 2y ago
Many governments do things that are economically inefficient, for example imposing tariffs to protect industries.
- johnnyanmac 2y agoAnd they also - subsidize farmers so consumers have cheaper groceriess - help fund public schools so education is less limited by socioeconomic status - fund science to advance the future - offer tax credits to encourage adopting environentally-friendly technology - apply taxes to disincenivize bad habits (e.g. tobacco) So I'm not sure where you're coming at with this angle. That's government's greatest effect on society. > imposing tariffs to protect industries. Trump is doing it wrong and recklessly, so no disagreement in reality But there are smart tactics for this short term inefficiency that can cause long term competitiveness. You can apply a high tarriff if you trust that domestic competition can catch up in a few years so you don't lose your own market to overseas competition. Long term, encouraging domestic stimulation is much better and more reliable than relying on foreign products for consumption. Especially essentials.