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To: 4rcane

Got a question. Is raising taxes on imported goods to match how much it will cost if produced locally, considered a capitalist or a socialist policy?


39 posted on 07/26/2009 1:01:01 AM PDT by 4rcane
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To: 4rcane
Got a question. Is raising taxes on imported goods to match how much it will cost if produced locally, considered a capitalist or a socialist policy?

Rarely is raising taxes a capitalist policy. This example is more protectionist than socialist. Socialism is more about equity in outcomes and wealth redistribution while protectionism is more anti-free trade and anti-competition.

Usually, in this case the problem is the government has made an environment that makes it uncompetitive for local producers to compete. However, instead of making policies that will allow local producers to be more competitive the government raises tariffs to block the consequences of such policies.

41 posted on 07/26/2009 1:07:57 AM PDT by Cheap_Hessian
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To: 4rcane; All
Got a question. Is raising taxes on imported goods to match how much it will cost if produced locally, considered a capitalist or a socialist policy?

Good rule of thumb for anyone wrestling economic questions [and I'm pretty sure I'm preaching to the choir in your case, 4rcane]: if it requires central-planning by the government, it sure the hell ain't capitalism.

52 posted on 07/26/2009 1:32:42 AM PDT by LowCountryJoe (Do class-warfare and disdain of laissez-faire have their places in today's GOP?)
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