Tariffs: the good and the bad

[pjohns]

There is currently a rather large argument over whether tariffs (basically, taxes) are a good thing or a bad thing.

It would probably be better if we noted that they have both an upside and a downside--and then looked to see which appears more important.

The upside is that more Americans are put to work, who were previously unemployed.


The downside is that just about everything--even tangentially related to those things affected--costs a bit more.

In short, not everything is 100 percent good or 100 percent bad.

My own preference is for lower prices--which are not congenial to tariffs.

Of course, those who have been laid off for awhile, and who may be personally affected--as well as their families--may vote for tariffs.

Thoughts?

[Chris]

I have to disagree. Specific tariffs on imported goods can protect and even increase jobs for US companies that produce those goods. But if those goods, like steel, serve as inputs to production processes in other companies, then the rise in the cost of those goods will harm many more jobs in those industries, like say auto manufacturers who consume the steel. On balance, it's not good for tariffs.

Now I can understand military/defense arguments for tariffs. In order to be strong, we need to have US production of some goods, like steel. We just have to sacrifice price for security.

I can also understand using tariffs as bargaining chips to get other countries to lower theirs. I hear German automakers are demanding the removal of German tariffs on importing US cars. Trump has said he would prefer zero tariffs.

[jigglepete]

The only tariff I can see negatively affecting me personally is the olive tariff, I mean, what am I to do? Switch from olives to a twist in my martinis? Make them with well vodka (keep the cost down)? Stop drinking martinis? All unacceptable, my first world problems are never ending...