Most people look at tariffs as something bad. It impedes free trade which helps to bring down the cost of production and the prices of goods.
The advocates of free trade ignore the important aspects of tariffs.
a) It is a way to bring tax revenue to the government to fund its operations. The alternative of relying on income and corporate tax is not reliable due to the ability of the wealthy to hide their profits in tax havens.
b) It helps to retain jobs in a country by reducing the impact of differences in wages and working conditions in various countries.
It is true that tariffs will increase the cost of products in a country. But the revenue collected from tariffs are needed to fund the government. The alternative is to have governments in chronic deficits, as had happened in America and other advanced countries.
More of my views here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1072
The advocates of free trade ignore the important aspects of tariffs.
a) It is a way to bring tax revenue to the government to fund its operations. The alternative of relying on income and corporate tax is not reliable due to the ability of the wealthy to hide their profits in tax havens.
b) It helps to retain jobs in a country by reducing the impact of differences in wages and working conditions in various countries.
It is true that tariffs will increase the cost of products in a country. But the revenue collected from tariffs are needed to fund the government. The alternative is to have governments in chronic deficits, as had happened in America and other advanced countries.
More of my views here:
https://tklcloud.com/Feedback/feedback2.aspx?id=1072
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