Tariffs and protectionism: An economic disaster waiting to happen?

2016-12-05_0115-trump-frustratedHow Trump’s tariff plan could backfire on American consumers – 

A tariff works like a tax but comes in the form of higher prices. The revenue generated gets split up between the government, the worker, and the companies that get protected from competition. So if you’re in Arizona and buy an air conditioner, some of that money will be handed over to workers in Indiana for example (and their corporate overlords). That air conditioner is going to cost a lot more than it did before just to preserve a job here or there.

Another one of those ideas that sound better in theory than in reality. Let us consider what Mark Levin has to say regarding populism, nationalism, and ‘Americanism’ – 

‘How many more experiments must humanity go through before it becomes obvious that our system, as set up by the framers, is and was the best? How many more human experiments must we have? How much more spending until it becomes clear that the government doesn’t create jobs? Nobody spent more to “create jobs” than Franklin Roosevelt. Obama spends a hundred billion dollars on infrastructure, what did that do? Now Trump wants to spend a trillion dollars. What will that do?’

The Road to Hell is paved with good intentions. Globalization has been a killer, but reversing decades of damage is a tricky and delicate process. It can’t be done overnight, and it can’t be done by cutting off our noses to spite the face …

Copyright 2016, Sunking278. Stay up-to-date: Twitter – @Sunking278 and Facebook – click here.

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