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To: central_va; Mad Dawgg
If you look at the BLS stats for manufacturing, Labor is still 30% of the cost of manufacturing for those industries that are still in the U.S. Of course, I expect the highest labor industries have long since been off-shored. And there have probably been a lot of high labor components off-shored as well.

I would come at Central_va's calculation of a few cents on the dollar a different way. If you raise tariffs by 10%, and you know imports are equivalent to 16% of our GNP, that's an average price increase of 1.6%. That puts an effective cap on the effect of the tariff.

Effectively the tariff will re-shore production of highly automated processes and products with lower labor components first. High labor products will continue to be off-shored.

And I'm not sure a 10% increase will be enough. A lot of damage has been done. I'd recommend raising the tariff 2.5% a quarter until full employment has been reached and using the proceeds to offset taxes on Americans.

137 posted on 01/24/2014 11:11:31 AM PST by DannyTN (A>)
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To: DannyTN
If you raise tariffs by 10%, and you know imports are equivalent to 16% of our GNP, that's an average price increase of 1.6%.

So you think, while paying no attention to industries that rely (in part or in whole), upon imported inputs.

141 posted on 01/24/2014 11:18:00 AM PST by 1rudeboy
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To: DannyTN
"And I'm not sure a 10% increase will be enough..."

Oh I can guarantee it. Once the congress critters get THAT particular bit between their teeth it will be Katie-bar-the door.

And of course none if your pie-in-the-sky tariff schemes deal with all the compliance costs of locating a manufacturing business here in the USA. Its why your $1.00 to $1.10 increases is so laughable.

You are all pretending that Obamcare and the EPA and OSHA and the Greenie movement and the Tort Lawyers won't have a huge impact on the issue.

You also pretend that the lobbyists won't riddle your tariff to the point it will be so complex all that will get done is it will make more lawyers rich as they constantly go to court over exemptions and rulings etc.

Now my question is are you really that naive or is it part of the unionista movement to point over there while ignoring whats over here?

145 posted on 01/24/2014 11:26:39 AM PST by Mad Dawgg (If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
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