05-13-2019, 06:22 PM
Tariffs aren't necessarily a bad thing, but it's unlikely the ones we're doing are going to have much of a positive impact.
The positive of tariffs is that when they get high enough, they encourage American companies selling products to Americans (or any company selling products here, really) to move production here instead of using cheap labor in other countries. That creates more jobs, which pays more taxes, which is part of how we got the booming economy we used to have.
The negative is the cost is passed on to the consumer. So if the companies creating stuff don't move the jobs back (or if they do, but want to keep profits high), then it just raises the cost on consumers who still have low paying jobs.
The reason these aren't going to have a positive impact is because it's all theater costing taxpayers money. Instead of imposing tariffs and forcing businesses to adjust wages or increase jobs, Trump (and I say Trump because he's about the only one in favor of it) is imposing tariffs and Congress/Trump is making up the losses to companies at the cost of taxpayers. So the end result is a higher cost for stuff, no real job creation and consumers/taxpayers having to make up the loss of income for businesses.
Seeing that, other countries know they don't have to negotiate trade deals more beneficial to the US because whoever comes in next is going to wipe them out.
The positive of tariffs is that when they get high enough, they encourage American companies selling products to Americans (or any company selling products here, really) to move production here instead of using cheap labor in other countries. That creates more jobs, which pays more taxes, which is part of how we got the booming economy we used to have.
The negative is the cost is passed on to the consumer. So if the companies creating stuff don't move the jobs back (or if they do, but want to keep profits high), then it just raises the cost on consumers who still have low paying jobs.
The reason these aren't going to have a positive impact is because it's all theater costing taxpayers money. Instead of imposing tariffs and forcing businesses to adjust wages or increase jobs, Trump (and I say Trump because he's about the only one in favor of it) is imposing tariffs and Congress/Trump is making up the losses to companies at the cost of taxpayers. So the end result is a higher cost for stuff, no real job creation and consumers/taxpayers having to make up the loss of income for businesses.
Seeing that, other countries know they don't have to negotiate trade deals more beneficial to the US because whoever comes in next is going to wipe them out.
![[Image: 4CV0TeR.png]](https://i.imgur.com/4CV0TeR.png)
