Offshoring production increases profit margins. It does not lower the retail price. That is an illusion. Labor is just a small component in the cost of production. There is only some much blood that can be squeezed out of the labor turnip.
May I please share what happened in the real world with the tire tariff example?
American tires were 30% more than imported tires but still affordable for most. But the steel worker’s union cried foul and lobbied Obama to have a tariff imposed on imported tires to even up the prices and make them close to the same.
This lasted about one month before the American companies took advantage of this opportunity to raised their prices back to the 30% difference again. Then the union gave themselves another raise.
In the meantime the price bar has now been raised to the point that a set of tires is so expensive for those just trying to get by that it is the only thing between being able to AFFORD a job or not.
When was the last time you priced a set of tires? There really are a high percentage of working incomes who cannot just go out and buy a set. Many actually have to take out a title loan against their vehicle to buy a set.
Like I say, many are now also trading in their car for one with news tires. They are forced to trade a $200 payment for a $200 payment because they cannot afford the extra to buy a set. Tires should not be this expensive, it is very counter productive to those trying to work and stay off of welfare.
My point is some certain “necessities” should be not imposed because in the end it can actually do more indirect harm than good to the overall economy.
A color tv in 1970 cost $700.
In today’s money, that is $4320.
I assume you would happily pay that $4320 today, correct?
Really? Where are all these sub $100-150 internal combustion engines coming from then?
There’s a huge retail savings on offshoring, most of it is probably regulatory and legal though...