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Originally Posted by nerv14
I agree with you that if we had a niche in the global market a tariff wouldn't be needed, but a tariff would give support to companies that produce goods, and maybe when they are large enough they will be globally competative. For instance, the US had large tariffs when the country was young so the industries could grow to when they were globally competative later. If the tariffs weren't enacted than there would be no buissines to export anything later.
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But we both agree, that "general tariff first - look where to compete second" isn't the real deal, don't we? If I get you right, you are pretty much advocating a punctual tariff anyway...
But I don't think even that is needed: As I said before, realistic expectations of longterm revenue will make the companies grow on their own.
Plus you don't know how everybody else counteracts: Answering with protectionism themselves would be very likely, which would be kinda a step backwards in times.
Quote:
Originally Posted by nerv14
I am also wondering if a weakened US dollar would have negative effects
besides making it harder to import products. I am unsure of any, but it seems like that some more would exist. If there isn't any than I would be more alright if the US dollar is weakened.
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It's a necessity in terms of dealing with the deficit in balance of trade since it strengthens the exports and makes it harder for imports.
Quote:
Originally Posted by nerv14
If a tariff is increased right now it would not only increase the costs of importing products, which you are saying would happen naturally anyway, but it would give money to people in the US to buy more products overseas. The increased revenue from the jobs that were originally done overseas would also allow the US to purchase more products from other countries.
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That thought falls a little short in my opinion: You ignore that a tariff is actually pretty bad for domestic consumers, they have to pay a lot more than before. The jobs that are artifically created by that tariff, don't make up that inefficiency - don't just take my word for it, take
Adam Smiths if you like.
Quote:
Originally Posted by KidCann117
yeah abolish the brainchild of probaly the smartest economists ever!
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Well, that brainchild forced the US into the largest Depression in history, i wouldn't put too much faith in them. Abolishing the FED is IMHO the best proposal S_E made, among many pretty simple-minded ones.
