2 ms·
While trade barriers might improve working conditions, as you hint, it's going to come at a cost of disposable income. Those barriers work by raising the minim
by PaulRobinson 1y ago
While trade barriers might improve working conditions, as you hint, it's going to come at a cost of disposable income.
Those barriers work by raising the minimum price of a product, making it profitable to produce it in a more expensive labor market. When you make products more expensive though, it comes out the other side as people have to pay more to get the things they want, and you get inflation.
If that is what people want, OK, fine. I don't think it's what has been sold to most Americans though - not only is the narrative that inflation going to be avoided, but income tax is going to be scrapped too. It's hard to find credible economists from any part of the political spectrum who agree.
I hope it does work, because if it doesn't, what will follow will be horrible to watch from afar, even if as a result we end up with prices for most things coming down (if Chinese companies can't sell to the US, they'll just dump to the rest of the World).