One thing which always surprises me, no matter how many times I see it, is people claiming consumption taxes are fairest and simplest. Not only are consumption taxes regressive, they also require just as much nosy information as income taxes, except it's asked of stores instead of people ... except then the government wants to know about yard sales and flea markets which are dodging sales taxes, and they want to know about trading a new deck for a root canal, or selling a lawn mower to a neighbor. The EU VAT, last time I looked probably 10 years ago, had something like 100 categories, such as agricultural supplies, school supplies, etc, which require knowing what category the buyer is. There are just as many opportunities for corruption and favoritism as income tax.
I try sending people to this article on examples of tariff favoritism and corruption, but few bother.
Maybe it was addressed in the papers and not the summary, but what is the counterpoint to the belief that “tariffs will bring jobs back to America”? Even under “perfect” circumstances, the capital expenditure and time lag to “bring jobs back to America” is immense (and completely unrealistic to happen). Is it just short term pain for misguided faith in long term gain?
So far the net effect of the tariffs have been job losses. By my last count the monthly pace of manufacturing job losses has doubled since Liberation Day (April). This is because most imports (~56%) are industrial supplies, materials and capital goods that manufacturers use in the production process. A tariff on steel, for example, may provide a modest cushion for steelmakers, but for every worker employed in steel production, there are scores employed in industries that use steel to make appliances, cars, batteries, and machinery. When input costs rise, those industries hire less, not more.
One thing which always surprises me, no matter how many times I see it, is people claiming consumption taxes are fairest and simplest. Not only are consumption taxes regressive, they also require just as much nosy information as income taxes, except it's asked of stores instead of people ... except then the government wants to know about yard sales and flea markets which are dodging sales taxes, and they want to know about trading a new deck for a root canal, or selling a lawn mower to a neighbor. The EU VAT, last time I looked probably 10 years ago, had something like 100 categories, such as agricultural supplies, school supplies, etc, which require knowing what category the buyer is. There are just as many opportunities for corruption and favoritism as income tax.
I try sending people to this article on examples of tariff favoritism and corruption, but few bother.
https://www.fff.org/explore-freedom/article/protectionism-is-more-idiotic-than-it-looks/
Maybe it was addressed in the papers and not the summary, but what is the counterpoint to the belief that “tariffs will bring jobs back to America”? Even under “perfect” circumstances, the capital expenditure and time lag to “bring jobs back to America” is immense (and completely unrealistic to happen). Is it just short term pain for misguided faith in long term gain?
So far the net effect of the tariffs have been job losses. By my last count the monthly pace of manufacturing job losses has doubled since Liberation Day (April). This is because most imports (~56%) are industrial supplies, materials and capital goods that manufacturers use in the production process. A tariff on steel, for example, may provide a modest cushion for steelmakers, but for every worker employed in steel production, there are scores employed in industries that use steel to make appliances, cars, batteries, and machinery. When input costs rise, those industries hire less, not more.