Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: arrogantsob

Agreed. See Bush’s 2002/3 Steel tariff..............


11 posted on 01/23/2018 7:43:55 PM PST by Reagan Disciple (Peace through Strength)
[ Post Reply | Private Reply | To 6 | View Replies ]


To: Reagan Disciple; All

Our history with the tariff began with a tariff designed to collect revenue for the government since that was the only way to tax. Our economy had been distorted by colonialism and justified leaning in the other direction of protection for certain industries. Hence it was a revenue tariff and a protectionist tariff.

The other type tariff is a retaliatory tariff which is designed to retaliate against a nation which raises its tariff or is involved in practices which reduce Free Trade.

Markets make better use of the factors of production than governments and the change from more profitable to less profitable means less wealth is created. It is inescapable logic

There is no economic justification for a political tariff which is what this is. Trump just fired a shot across the bow demonstrating that he is serious about foreign trade with the view that trade should move more towards Free Trade.

But there is no real question about the fact that a tariff reduces economic growth, like all taxes. Trump understands that but is willing to accept economic losses in the short run for a larger payoff in the long run


26 posted on 01/23/2018 10:06:27 PM PST by arrogantsob (Check out "Chaos and Mayhem" at Amazon.com)
[ Post Reply | Private Reply | To 11 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson