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Here's this contrarian take re: Trumpian tariffs:
Economists usually have a keen eye for tradeoffs. They understand you cannot have your cake and eat it, too....Economics is about making choices. We face trade-offs. If you want more of this, you must give up some of that.
OK, cool. What of it?
We could rely a little more on tariffs and a little less on income taxes, or a little less on tariffs and a little more on income taxes. It is at least conceivable that, given the relatively low tariff rate and the relatively high marginal income tax rates, the deadweight loss caused by a marginally higher tariff rate would be more than offset by the gains from trade caused by a marginally lower income tax rate.

"It is not enough to say that tariffs are bad. One must also show that tariffs are worse than the available alternatives."

The relevant question is whether the marginal deadweight loss associated with the tariff is greater than the marginal deadweight loss associated with the income tax.
Worth thinking about.
Thanks, bud. I feel like I've been shouting this into the void.
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good good good.
That, plus geopolitical art-of-the-deal type negotiation tactics plus optimal tariff theory (=U.S. being such a large buyer of goods that reduction in demand lowers world market price), and tariffs are starting to look like efficient freakin policy
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It's very hard to effectively retaliate against. That's one of the nice things about an enormous trade deficit, Trump has the leverage.
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Thanks, ~econ buds. You've given me new ammo for how I can talk about tariffs.
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Well said. One would think it is no brainer to go for higher tariffs and lower taxes (makes you like your country more :-)) but the govt has a different idea. Hopefully this one (govt that is) is different and will do the right thing for a change. Time will tell
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