pull down to refresh
40 sats \ 7 replies \ @Undisciplined 8 Apr \ on: Trump’s Tariffs Are Economic Folly, Top to Bottom | The Libertarian Institute econ
We'll see if he follows through on reducing these new tariffs as other countries reduce their trade barriers. If that happens, then he was wielding America's superior negotiating power, as the major importer, to reduce overall trade barriers. That would be great.
If the point is to eliminate trade deficits, then we're in for a rough ride, because in all likelihood the dollar will lose reserve currency status without persistent trade deficits.
I don’t think that this administration was ignorant enough to try to reduce all trade deficits to all individual countries to zero. I think that they are trying to reduce barriers to trade, both tariff and non-tariff types. Some of the non-tariff barriers are far more restrictive than the tariff barriers, in fact, they preclude any trade at all in certain items. Of course, we have these barriers, too, for instance in foreign drugs. Why are ours any better than theirs?
reply
Some of the non-tariff barriers are far more restrictive than the tariff barriers
Yes, I've been trying to point this out to people who act like the official tariff numbers are the relevant ones.
reply
I am not sure whether the uninitiated understand the issues involved in trade. I can give you firsthand instances of non-trade barriers being overcome by the handy-dandy method of smuggling self-organized free trade. If you think there is a problem with smuggling self-organized free trade now, in various areas of the economy, then just wait until the heavy tariffs go into effect. Cigarettes are a good example of the smuggling self-organized free trade problem when you can buy them tax-free in one state and move them to a high tax state and undersell them to others. Tax or no tax, people will buy them cheaper, won’t they?
reply
A friend of mine from Wisconsin told me about his uncle who had been a contraband cheese smuggler, because Wisconsin has a bunch of protectionist measures in place for its dairy industry.
reply
Did he make his living that way? My feeling about it is that if they can tax or tariff it, we can dodge the tax or tariff, as long as we don’t get caught. The state is very, very strict with very, very hard sentences when it comes to undercutting them and taking their profits or stealing from them. The whole thing is not to get caught, though.
reply
I think it was more of a weekend side hustle. The story I heard involved him forgetting about a trunkfull of cheese on a very hot weekend.