4 ms·

I get what you're saying, but I'm not getting any way that the economics here work. Expanding (rather than shrinking) the economy that way only works if you can

I get what you're saying, but I'm not getting any way that the economics here work. Expanding (rather than shrinking) the economy that way only works if you can export some of your production, which you won't be able to do if the production only exists because of tariffs. (Because other countries will enact counter-tarrifs.) If you move Walmart employees to building widgets at a somewhat higher wage and that shrinks your economy, you'd have better overall results if you just raised taxes and gave the money to Walmart employees directly.

Aloha 2y ago
If every high wage country did the same thing - and specifically targeted low regulation places - it would. I'm certain that the US can build something that is competitive in Europe, and most of the Americas. Also flatly, people cannot pay their rent, or eat GDP, its possible to have lower GDP growth and still be more prosperous country, most of the GDP loss will be to upper income earners.
- Marsymars 2y ago
  > Also flatly, people cannot pay their rent, or eat GDP, its possible to have lower GDP growth and still be more prosperous country, most of the GDP loss will be to upper income earners. Right, but then you’re working with a smaller pie than if you just skipped tariffs, taxed the upper income earners, and redistributed that. And tariffs are particularly regressive - mostly resulting in higher costs for your low income earners, since tariffed goods are a relatively higher part of their expenses than they are for the wealthy. Tariffs are an economically inefficient way to get a bigger pie slice for the median earner.
  - Aloha 2y ago
    Sure - but they're a politically possible one. I'm a big fan of UBI - love it, make all my librarian bits very happy! - but I also acknowledge the political reality of it. I also do see the value in work, people derive significant mental health benefits from meaningful work too, that shouldn't be discounted.

Aloha 2y ago

If every high wage country did the same thing - and specifically targeted low regulation places - it would. I'm certain that the US can build something that is competitive in Europe, and most of the Americas. Also flatly, people cannot pay their rent, or eat GDP, its possible to have lower GDP growth and still be more prosperous country, most of the GDP loss will be to upper income earners.

Marsymars 2y ago
> Also flatly, people cannot pay their rent, or eat GDP, its possible to have lower GDP growth and still be more prosperous country, most of the GDP loss will be to upper income earners. Right, but then you’re working with a smaller pie than if you just skipped tariffs, taxed the upper income earners, and redistributed that. And tariffs are particularly regressive - mostly resulting in higher costs for your low income earners, since tariffed goods are a relatively higher part of their expenses than they are for the wealthy. Tariffs are an economically inefficient way to get a bigger pie slice for the median earner.
- Aloha 2y ago
  Sure - but they're a politically possible one. I'm a big fan of UBI - love it, make all my librarian bits very happy! - but I also acknowledge the political reality of it. I also do see the value in work, people derive significant mental health benefits from meaningful work too, that shouldn't be discounted.