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To: econjack

There are national security implications, some industries should be protected.


8 posted on 12/23/2023 8:01:30 AM PST by dfwgator (Endut! Hoch Hech!)
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To: dfwgator

I agree, but tariffs have a way of hanging on long after they have served their purpose. Also, tariff protection is a “push on the string” policy; it’s like pushing on a string to get something to change. If you change tax policy instead, the benefits accrue only if you take an action that addresses the problem. Too often in the US, tariffs protect small emerging companies (a good thing) while the big producers just sit back and do nothing but let the higher prices induced by the tariffs fall through to the bottom line. Stockholders benefit even though the company does nothing to alleviate the problem.

The tax change approach still gives the emerging companies benefits as it invests in new technology, but existing companies don’t benefit unless they, too, invest in new technologies.


13 posted on 12/23/2023 8:27:47 AM PST by econjack
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