leadbyexample on Nostr: It's more complicated than that. In an ideal world where no states exist, no tariffs ...
It's more complicated than that.
In an ideal world where no states exist, no tariffs nor income taxes nor regulations would be a thing, so quality of life would skyrocket and real wealth and purchasing power likewise.
Canada and Mexico base a significant portion of their internal revenue on exports to US, while US raises a negligible amount of wealth by exporting to nearby countries.
Guess why that is.
Trump is playing a game where higher tariffs to export to US are used as a negotiating stand to make other countries lower their own tariffs.
A tariff on imports of good X will incentivize internal production of X (at the expense of consumers who are forced to buy X from local, more expensive producers, because would-be cheaper foreign X is overpriced due to the tariff), which is what foreign countries have been doing since forever to US exports.
The above is not my own thinking, I am merely relaying an interesting analysis by Stefan Molyneux.
In an ideal world where no states exist, no tariffs nor income taxes nor regulations would be a thing, so quality of life would skyrocket and real wealth and purchasing power likewise.
Canada and Mexico base a significant portion of their internal revenue on exports to US, while US raises a negligible amount of wealth by exporting to nearby countries.
Guess why that is.
Trump is playing a game where higher tariffs to export to US are used as a negotiating stand to make other countries lower their own tariffs.
A tariff on imports of good X will incentivize internal production of X (at the expense of consumers who are forced to buy X from local, more expensive producers, because would-be cheaper foreign X is overpriced due to the tariff), which is what foreign countries have been doing since forever to US exports.
The above is not my own thinking, I am merely relaying an interesting analysis by Stefan Molyneux.