Who do tariffs punish? Many think they punish unscrupulous and cunning foreign manufacturers. They do not act in a fair manner and “dump” inferior products. Although the American market sells for less than the cost of American producers, that is not true. Tariffs are sanctions or penalties imposed when U.S. consumers don't pay enough.
The government regularly imposes sanctions Accuse other governments of various violations of human rights or international treaties, or other similarly egregious acts. These sanctions may deny nationals of one country to trade with nationals of another country or may result in a complete embargo. The basic idea is that by punishing a country with trade sanctions, you can change its behavior. Or, by punishing a country's people, it could encourage them to rise up and throw off the chains of their oppressors.
Sanctions have a checkered history And a less impressive track record. protectionism This is a classic example of a policy that does the opposite of what it is supposed to do. It increases American employment in protected industries, but workers' additional income is transferred dollar for dollar from consumers. Land, capital, labor, and other resources could be used more efficiently to build something else.
according to be daily mail poll When asked about President Donald Trump's plan to impose a 10% tariff on all imported goods, he said, „24% of likely voters strongly support this policy proposal; I tend to support it.“ Protectionism is bipartisan. A few weeks ago, Reuters reported that Senate Democrats in manufacturing states were pushing for tariffs on Chinese-made electric vehicles.Allowing heavily subsidized Chinese cars to enter the U.S. market would jeopardize U.S. auto manufacturing.”
It is not difficult to show that there are benefits for domestic producers. Domestic consumers' pockets. It is also very easy to show that the decrease in trade benefits to consumers is greater than the increase in trade benefits to producers and the tax revenue enjoyed by governments. These videos from Marginal Revolution University Let's look at the graphs one by one.
If you do a quick survey of economists, you'll find many more enthusiastic about freeing. international trade higher than the average person or median voter.In fact, more than 1,100 economists have signed on. 2018 Open Letter from the National Taxpayers Union He called on the government to abandon protectionism. unfortunately, Median voters accept populist demagoguery and vote passionately on tariffs and other restrictions on international trade. The results will not make America great again. They only make us poorer.
Tariffs on foreign products are „sanctions“ against American consumers. Their crime? Domestic producers don't want to pay as much as they would like.