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0 sats \ 6 replies \ @Rothbardian_fanatic OP 15 Nov \ parent \ on: Machiavelli's Sage Advice To Transformational Leaders Politics_And_Law
Yes, they are technically called tariffs.
That would have devastating consequences for the US. I'm sure Trump blandishes that only as a mean of negotiation against China and the like. But if actually put into practice, the US will go down straight into a severe recession. That's precisely the protectionism that crippled Argentina's economy for decades, and the solution out of the crisis and into economic prosperity is to take tariffs down.
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Yes, that is what the Austrians say. But, theoretically, the whole world would have to drop tariffs to make free trade work. I don’t see that happening at any time. Too many countries prefer to do protectionism.
Yes, we could drop our tariffs and try to freely trade, but what are we making lately that people want? I would say nothing that they want because who wants tanks, bombs and other weapons? Only thieving states want them.
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the whole world would have to drop tariffs to make free trade work
That's the exact opposite of how tariffs work, where did you got that theory from?
Ain't no "theoretical" here, I'm talking to you from first hand, real-life experience: tariffs devastated the local economy in Argentina. We are in our way to eliminate them for good.
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Tariffs work to block free trade. They work to protect local businesses at the cost of local consumers. The local businesses under tariffs become non-competitive with outside businesses. Thus, devastation when they are exposed to outside influences.
England had the same experience when they made their “Corn Laws” that lowered tariffs, their consumers were better off and the businesses became very competitive. In the short term there was a lot of problems in the economy when they had to adjust to the new regime.
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Thus, devastation when they are exposed to outside influences.
No, this is the part you are not getting. Devastation occurs because local businesses become both non-competitive and expensive (for prices can rise up to the tariffs and more), and before markets are re-opened, which is done indeed to allow the economy to come back to life and correct the damage protectionism caused. I'm not theorizing, I'm not making assumptions based on something I was told, I'm telling you exactly how it works from within, because I'm living it.
Trump will not apply tariffs because that will blow up the economy. He is blandishing that possibility as a weapon to actually negotiate free-trade treatises, as with Argentina right now, and China soon.
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That is what I said.
Trump will do as he will. I am not sure that he is a friend to consumers, though.
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