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It's because those second-order effects are pretty much theoretical and they're just a distraction. Nobody actually believes that tariffs will increase producti
by const_cast 1y ago
It's because those second-order effects are pretty much theoretical and they're just a distraction. Nobody actually believes that tariffs will increase production in the US because you would need to be very naive and stupid to believe that. And, well, you're not. So yes, people might call your bluff and unfortunately this means we all have to actually try when we're creating our arguments.
The reason for this is that we understand it would take on the order of decades to make that kind of domestic economic reform. And we have seen this administration cannot even hold decisions on the scale of weeks.
So yes, you're correct that this could, theoretically, increase domestic production. In the same way that if I run my hand into a wall there's a chance all the atoms miss each other and I phase right through.