24 sats \ 10 replies \ @Satosora 13 Nov \ on: Tariffs Are Not a Meaningful Source of US Government Revenue charts_and_numbers
They never were.
Arent they meant to push production in your own nation?
Actually, they were the primary source of government revenue, prior to 1913.
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Yes, moreover the creation of Fed Reserve in 1913 wasn't only gangbuster legislation that year...also was same year of creation of Income Tax. This isn't by accident.
After their 2 previous central banks, they realized they needed permanent funding mechanism in place to pay interest on the debt. So tariffs were scrapped and Income Taxes became the new thing.
In theory this is path back to no Fed: (a) Institute tariffs, (b) massively lower income taxes, (c) allow alternative currencies to prosper (ie bitcoin). (d) eventually do away with Fed and permanently end Income Taxes.
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, when the governmwnt was still a lot smaller.
ftfy
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Do you mean that low tariffs in the US help increase production in other countries? If so, I think so.
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I think he means the opposite. High tariffs are protectionist measures that retain domestic production.
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true but only in the short to medium term
low tariffs everywhere enable every geographic place to use their comparative advantage which makes everyone on earth (including the global poor AND american middle class) richer in the long term
So yes, it increases production in other countries because it increases production everywhere 🏭
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free trade empowers the comparative advantage. let each nation and people do what they do best...
Then more people will be lifted out of poverty by lower prices and greater productivity.
Tariffs do not accomplish this.
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