Will Trump's Plan to Slap on Tariffs Raise Prices and Kill Jobs?

  1. My Esoteric profile image90
    My Esotericposted 12 months ago

    A pillar of Trump's campaign is to get out of NAFTA and kill TPP as well as slap on huge tariffs for imported goods.  Economists think that well make things more expensive in America and Kill American Jobs.

    President Reagan attempted a similar anti-laissez-faire program:

    Large tariffs would mean that Americans would pay more. When President Ronald Reagan put a quota on the number of cars Japan could ship to the United States, American car makers hiked prices by $1,000 on average, knowing they would face less foreign competition.

    Do you agree?

    1. wilderness profile image97
      wildernessposted 12 months agoin reply to this

      It's a little difficult to understand how increasing prices on imports will kill American jobs.  The idea is that it will promote American jobs as it will now be cheaper to make products with American labor than pay the tariff and that does seem reasonable. 

      One could argue that it will cost American jobs because no one has the money to spend on American products (having given it to government in the form of tariffs), but isn't the obvious solution to reduce taxes by that same amount, leaving Government with the same "income" and the people with the same "spending money"?  Or do you expect liberals to gobble up the extra "taxes" in entitlements to further lock the citizen to government charity?

      I do think the tariffs are fraught with danger and that they could result in considerable harm.  The question is would they cause more harm than continued exodus of jobs, and that one is impossible to predict without seeing that actual taxes being proposed.