Brief Q&A About Tariffs – Why tariffs don’t attack the root causes of businesses fleeing America

Premise: U.S. tariffs arbitrarily force higher-than-market prices for the American consumer. Tariffs do nothing to improve quality or productivity. Either the consumer will choose not to buy the good or will make changes to budget for the higher price of the good. Either way, the standard of living for the American consumer has been lowered by the tariffs. In the meantime, tariffs do not address the root causes of enterprises fleeing the county which are the direct result of federal government actions of high taxes, regulations, minimum wage and union protection.

Question: Tariffs are a leverage factor which should be imposed on countries and companies who cheat. What about countries that subsidize their productions to drive American businesses out of business? What about countries that manipulate their currency to underprice their products.

Answer: That country is essentially shooting itself in the foot and will not last long in that sector in the competitive market. HOWEVER, a country that ACTUALLY has lower costs of production without manipulation will have the competitive edge AND SHOULD win in the marketplace with the consumer as the ultimate winner of the best product for the best price.

Many confuse legitimate competitiveness in the free market from which the consumer benefits with the brief but always failed currency-manipulation/subsidy/tariff tactics of countries including the U.S. Those measures tend to weaken the economy making it more difficult for domestic industries to compete in the open market

One well-known reason for America’s economic woes is we are one to the highest taxed countries in the world. THAT alone will send enterprise elsewhere.

Question: Take a look at plasterboard alone and its effect on building and health costs. Who paid the price for a cheaper product? America did, far over and above any benefit of a cheaper price.

Answer: Supply and demand without government subsidies and interference will take care of those problems as demand for faulty products will disappear and demand for quality products will strengthen.

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