Earlier quoted context omitted.
Your comment proves too much. It would equally apply in the scenario where the foreign country is dumping goods to destroy local competition (i.e. the "Walmart destroys local stores" story writ large). And yet, in that scenario most people would be in favor of tariffs. More generally, as I understand it, the reason economic orthodoxy is against tariffs is because of "comparative advantage", and the idea that differen…
The US has higher wages than third world countries for most workers and more than China. So for things that take more human labor, we are disadvantaged if we make them. Those things may be cheaper to but and import. Things with more IP behind them or requiring less labor are more likely to be efficiently produced in the US. So importing those goods that can be much more cheaply in say china or mexico saves everyone i…
Why is paying higher wages while keeping the money in the community/country a "disadvantage" exactly? Aren't you looking only at consumption without considering production?
Honestly, this sounds like parroted ten year old globalist propaganda. Craft beer has already shot this entire line of argument down, and other industries show signs of beginning to follow that model.
And the sharply increasing cost of long haul as manual truckers exit the industry is hastening the trend in 2018. Historically transportation costs exceeded any efficiency of "comparative advantages".