Where is the manufacturing? Not here in the US. Why do you buy the less expensive products made overseas? Probably because they are less expensive.
What about outsourcing jobs to India? To other countries?
Why do companies do that? Labor is less expensive!
Companies go where labor is cheap! We go to where products are cheap!
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Now, will US made products ever be as cheap as other countries? Nope.
Will US labor ever be as cheap as other countries? Nope.
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Will the US survive with companies outsourcing jobs?
Will the US survive with imports that are half the price as ours?
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Bottom Line..... should the US government provide heavy tariffs to US companies when they do outsource their jobs to another country?
Should there be heavy tariffs on MOST imported products?
The Giant Noodle, although all USA purchasers benefit from the imports’ superior values per dollar, those advantages do not compensate for our chronic annual trade deficits effects upon working families and others to the extent they’re dependent upon enterprises that are themselves somewhat dependent upon USA’s median-wage’s purchasing power.
Both tariff and Import Certificate proposals for global trade would increase prices to their nation’s purchasers of imported goods. Under proposed bilateral USA tariff policy, the increased prices we would pay for imported goods would be entirely government determined and any net federal revenues due to the tariffs would contribute to our federal budget.
Under Wikipedia’s proposed unilateral Import Certificate proposal there would be no net federal costs or revenues.
Any federal fees that exporters of USA goods choose, (i.e. they’re not required) to pay, are to defray net federal expenditures’ due to this policy.
Additional costs beyond federal direct expenditures due to this policy are entirely market determined and such additional costs to the importers of those foreign goods effectively serve as price subsidies for USA’s exported goods.
This policy would certainly increase USA’s GDP and numbers of jobs more than otherwise under all economic circumstances. Regardless import price increases, (even if they were only pennies per transaction), this policy would eliminate or almost eliminate USA’s chronic annual trade deficits of goods.
Tariffs cannot achieve their purposes unless they are sufficiently high. The most drastically high tariffs could effectively eliminate USA’s entire global trade but any lesser rate could not assure elimination or almost elimination of USA’s annual trade deficits of goods.
Tariff policies are entirely driven by their government’s determinations. Those on the political left generally deny and/or ignore markets rather than governments determinations clearer reflecting their participants’ preferences.
Those on the political right cannot acknowledge the fact of annual trade deficits drag upon their nation’s GDPs and numbers of jobs. This enables them to deny or disregard trade deficits net financial detriments to aggregate family’s dependent upon employment derived incomes or to enterprises more dependent upon the financial circumstances of those earning less than the nation’s median wage.
Refer to Wikipedia’s “Import Certificates” article.
Respectfully, Supposn
