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Reply to "Trump tariffs: ruin U.S. economy until 2040"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Can someone explain what Trump voters like about this? I truly don't understand. Why would anyone want this?[/quote] Increasing the cost of imports will decrease the amount of imports we buy, and will make locally produced products more competitive. Maybe Democrats should have focused on policies that US voters want. Like mandate e-verify, which Democrats refuse to do[/quote] It sounds so simple, but it does not happen so easily. First, there are not enough or any locally produced products that can replace imports, depending on the import. In order to spur manufacturing, the U.S. has to have a policy in place that lubricates the runway for production. If I asked you to start making toaster ovens tomorrow, how would you even start? You need capital, you need expertise, you need to build a factory, you need employees, you need investors. And importantly, you need parts, like light bulbs, heating elements, circuits, glass, etc - which you could have imported from Asia, but now you have to manufacture them yourself, or wait for the U.S. light bulb factory to get up and running. Otherwise your toaster oven will be more expensive than the one imported from taiwan, even with the tariff. The revenue from the tariffs will not be enough to subsidize factories. The only way that tariffs might help a nascent industry is if they are targeted and if there is a clear plan to start an industry. In S Korea, Hyundai wanted to make cars and the government supported this because, at the time, S Korea was still developing their economy. They bought a bunch of cars from ford so they could study them, went beyond tarrifs and outright banned foreign car imports, forcing Koreans to drive local cars even though they would rather be driving Mercedes and bmw’s. I’ll add that they started in the 1960’s and managed to produce their first car in 1975. And then survived the disaster that was the Hyundai excel, before finally becoming a respected manufacturer in the 90’s/2000’s. So it took 35-40 years. But that is not what is happening with trump’s crude, scatter shot, blow it all up strategy. [/quote]
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