Episode #24 - The Truth About Tariffs
We are told that protective tariffs are necessary to save jobs. We are told that high-wage countries like the United States cannot compete with low-wage countries like Vietnam and China. We are told that the dumping of products needs to be addressed with protective tariffs. But we are never told the whole truth. Politicians and mainstream news outlets never really evaluate the whole picture when it comes to tariffs. They never explain who really pays. They never ask the question: What about the consumer?
Listen to learn the truth about tariffs?
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Um, no, tariffs do NOT "allow domestic producers to charge higher prices.." UNLESS the QUALITY of their goods is at least as good as the imports. No one is willingly going to pay a higher price for 'champagne" made in NY just b/c genuine French champagne carries a tariff.
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Thanks for listening and taking the time to comment. Quality is certainly a consideration in this discussion but let's look at your champagne example. French champagne with a tariff slapped on it gives the domestic producers of champagne an advantage. And the bigger point is it is the end consumers who ultimately pay, not the corporations, not the foreign governments. That goes for the American consumer who is paying more for champagne than they would with zero tariffs and that goes for the Vietnamese consumer who is paying more for soybeans than they would with zero tariffs.
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