dingodan
New member
- Feb 16, 2011
- 10,080
OK, no tariffs unilaterally, have a think on that and see if you can see the problem for yourself.
Poorer people not having to pay more than neccessary for a product?
If we are buying a product from overseas at the expence of manufacturers in this country, why? Do tariffs solve the problem? No. If we can't make as good a product or we can't compete on price, there is good information there, we should probably make what we are making better, or make something else. To think that making a product more expensive for everyone is good economics we are fooling ourselves. There is maybe one set of circumstances which are difficult, like China dumping it's steel, because perhaps when they raise the price we will need our own again, but in general it's better economics to have people pay the best prices for goods (anything else hurts the poorest in society), and if neccessary adapt and improve our own sectors so as to either compete with or complement those competitive goods from overseas.
Protectionism and trade wars are generally not good policies, and hurt the poorest in society. They also discourage an innovative, adaptative and flexable economy.