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There has got to be a mechanism to keep manufacturing jobs here. Once the heart of the middle class.
Through out our history until recently the USA and other nations had tariffs as a way to keep the economy moving along. Adjusting the tariff's as needed, to keep a balance.
Tariff's need to be, so imports are competitively priced to the consumer, in comparison to American made products. So the American manufacturing does not get undercut and go out of business.
The Smoot Hawley Tariff Act, was an example of an adjustment that got things out of balance. Raising tariffs, 3x's higher than the trade balance.
It is said, that talks in congress leading up to the Acts passing, is what cause the stock market to implode.
Economists such as Thomas Rustici have claimed that whilst international trade was only a small portion of the US economy. The trade collapse directly affected vital banking institutions and services which had a much wider knock on effect.
There has got to be a mechanism to keep manufacturing jobs here. Once the heart of the middle class.
Through out our history until recently the USA and other nations had tariffs as a way to keep the economy moving along. Adjusting the tariff's as needed, to keep a balance.
Tariff's need to be, so imports are competitively priced to the consumer, in comparison to American made products. So the American manufacturing does not get undercut and go out of business.
The Smoot Hawley Tariff Act, was an example of an adjustment that got things out of balance. Raising tariffs, 3x's higher than the trade balance.
It is said, that talks in congress leading up to the Acts passing, is what cause the stock market to implode.
Economists such as Thomas Rustici have claimed that whilst international trade was only a small portion of the US economy. The trade collapse directly affected vital banking institutions and services which had a much wider knock on effect.
The mechanism to keep industry here is called economic freedom.
We have very little of it, since our tax rates and the virtual tax of regulation makes staying here financially infeasible.
Tariffs serve to raise the price of imported goods. They accomplish nothing else. Does this improve the economy?
So, if I buy $900 worth of clothing a year that's imported, and you raise the tariffs to make it cost $4000, will I spend $4000 on clothing? Likely not. But even if I had to, I would spend $3100 LESS somewhere else. You transferred employment from some other domestic production to clothing and profits from some other product to clothing, but the economy did not improve overall and neither did employment.
So, given the results, what was served by it?
Answer: Government got greater control over your spending.
That is all that protectionism serves. It enables corruption and collusion and crony capitalism.
Tariffs serve to raise the price of imported goods. They accomplish nothing else. Does this improve the economy?
So, if I buy $900 worth of clothing a year that's imported, and you raise the tariffs to make it cost $4000, will I spend $4000 on clothing? Likely not. But even if I had to, I would spend $3100 LESS somewhere else.
But I see it as putting a hurting on companies that are manufacturing and giving our jobs away overseas. If higher tariffs were imposed and nobody here wanted to pay the extra for those imported clothes it may force the companies to bring there manufacturing back to the US increasing our job opportunities and bringing back the middle class.
The "US" companies over in China gain Fat Profits by utilizing cheap labor and then selling it back to sucker Americans at elevated prices.
These companies need to have skin in the game and enacting tariffs would be one step.
If they don't like the tariffs, they could sell their widgets to their Chinese employees that make 70 cents an hour.
Tarifs don't work any more. They were a tool developed when the world was regional, not global, in it's trade.
Credit is what makes the economies of the world operate now, not tariffs. We cannot survive on our own, with walls of tariffs surrounding us. We haven't been able to do that ever since the Civil War started. The very first thing the Confederacy did was to suspend all tariffs that affected southern goods. By then, very few of the earliest tariffs even survived.
If they didn't work 150 years ago, they are surely not going to work now. It's time to catch up to the realities of the 21st century, Bent. Dreaming of returning to a blissful past ain't ever going to happen, and your version of the past never existed to begin with.
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