Applying a 30% tariff today would raise $600 billion annually and do much less harm to the economy than an increase in marginal rates. A 30% tariff on imported goods would encourage investment in US production. Combine it with a 15% federal tax rate on profits from goods manufactured in the USA and you would see investment in US factories plus the middle class jobs that come with them.
To those who say high tariffs hurt the economy, I say look at the investment in, and expansion of, the US economy from 1865 to 1900 when tariffs were high. Also look at the economic expansion and job growth of the 1950’s and 1960’s. Compare with the declining standard of living and job losses since 1990, when we started removing tariffs. The past decade in particular has been a disaster for job creation.
High federal spending to jump start demand did not work in 2008 because most consumer goods were produced overseas. Putting money in consumers hands by reducing the payroll tax, extending unemployment benefits or extending the Bush tax cuts didn’t work. To the degree the money was spent (some was saved) on consumer goods, the spending helped offshore factories, not US factories. In past recessions when the government put money in the hands of consumers they spent it on consumer products which were made in US factories. The increased sales resulted in higher production and in turn hiring by the factories. Today, deficit spending to put money in consumers hands does not work because the higher demand results in higher employment in other countries.
Raise tariffs, invest in domestic factories. More middle class jobs at home. I’d rather see low skill Americans being paid to assemble toys and toasters in a US factory than be paying high taxes so those low skill workers can sit at home and live off government benefits. If I pay $1.00 less to buy a Chinese assembled toaster than I would an American toaster but I pay an extra $2.00 in taxes to support someone who could be working to assemble the toaster but thanks to low tariffs is sitting at home depending on government handouts, I am worse off economically. The free traders, who gladly sent offshore the low skill, labor intense factory jobs, always fail to look at the total cost to society of having a large population of unemployed low skill workers who rely on government welfare to survive. There are significant costs to society and the economy when a nation sends low skill labor intense jobs offshore. Look at the experience of the last 20 years in the USA.
We, that is Americans, don’t want a high tariff. We like to buy inexpensive products.
We embrace the present and look forward to a prosperous future. We do not want to go backward. We want to innovate and maintain our prosperity.
I agree with every word of your post.