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Protective tariff on Chinese-made goods.?
If a protective tariff was placed on all Chinese-made goods, would that be beneficial to the US economy? What are the pros and cons of doing this? Wouldn't this halt outsourcing to other nations and promote American industry, which would ceate jobs?
4 Answers
- RileyLv 79 years agoFavorite Answer
No, the reason why American business's and company's are moving or outsourcing work overseas, is because of the Blue Law restrictions. Due to this US business, manufacturing, finance, banking, retail trading, hospitality, exports and many industry's. Can't be 24/7 globally competitive with the rest of the world in the United States.
With only working 9-5 Monday to Friday, and all closed down for religion on Sundays, while the rest of the world works 24/7. When the USA all closes down on Sundays, it's Monday in the most globally financial, manufacturing, exporting, and consumer spending countries in the world.
It's already late Monday afternoon in the Asian Pacific, lunchtime in Europe, morning in the UK, and it's still only Sunday evening in the USA. American business can't globally compete being closed, nor would be able to globally trade or export if we all closed at 5pm, or on weekends like they do.
This is why US business's, and thousands of Americans are migrating and moving overseas, to get jobs, than remain staying in the USA. Being US business can't afford to remain globally competitive in business in 2012, with these 17th century Puritan blue law restrictions. Religious Americans in the USA refuse to have them removed. This is what the problem is, and it's not going to go away, if you want a job there are millions of full time jobs in all employment industry's in Australia, and the wages are over three times more than in the USA. There is no recession here, or shortage of jobs.
http://news.yahoo.com/australia-targets-americans-...
- justgetitrightLv 79 years ago
Placing a tariff on Chinese goods would likely hurt our exports to China which last year was about $103 billion. There is a huge trade deficit or close to $300 billion already.
I would think that anyone that would get serious in thinking about placing a tariff take a good look at the Fordney-McCumber tariff Act of 1922 and the Smoot-Hawley Act of 1930.
Smoot-Hawley has been identified as one of the likely culprits of the Great Depression. Wall Street knew the act was about to be passed and in October 1929 the stock market crashed in anticipation.
Fordney- McCumber was a bit more like your proposition, it was a protectionist tariff centered around factories and farms.
Not disagreeing just saying that we should study history before it repeats itself and the fact that we owe China a ton of money.
- ?Lv 79 years ago
It would initially hurt the US economy, but there is an argument that it could help long term.
The reason it would initially hurt our economy is we are primarily a consumer based economy, meaning people make money and make jobs when people spend. A tariff on Chinese goods would inflate the price of many things, lowing the purchasing power of the dollar and making it so people have less to spend.
In the long term, it could help bring manufacturing jobs back to the United States IF that tariff covered the other hotbeds of manufacturing, like Taiwan, Vietnam, etc.
- posyaquepLv 59 years ago
Chinese garbage its invading the world commerce, with the lowest quality and dumping, this is not free trade its unfair competition