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To: SeeSharp
Hey Paul I know! Let’s erect a high protective tariff, gut our foreign trade, and make domestic prices shoot through the sky. That’ll solve it.

Silly "unFree trade" propaganda as domestic competition will keep prices down; as it always has. Would protective tariffs cause inflation? In the short term yes, in the long term we survive.

32 posted on 10/31/2015 11:32:36 AM PDT by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
Would protective tariffs cause inflation? In the short term yes, in the long term we survive.

The Soviet Union had an air tight protective barrier against foreign competition.

Protectionism always leads to higher prices. That's the whole point of a protective tariff. If domestic manufacturers can't charge higher prices then what good would a protective tariff do them?

In the long run the only thing certain about protective tariffs is that the domestic producers will not keep up with their foreign competitors in productivity and eventually the tariff won't help anymore. Look at the American steel industry. It has been one of the most protected industries since the founding of the republic. Yet it has never been able to stand up to foreign competition without a federal tariff subsidy.

35 posted on 10/31/2015 11:47:41 AM PDT by SeeSharp
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