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0 sats \ 2 replies \ @Rothbardian_fanatic OP 15 Nov \ parent \ on: Machiavelli's Sage Advice To Transformational Leaders Politics_And_Law
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.
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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