Tariffs only go to the government when people can actually afford to pay them.
When Tariffs jack up the costs of goods in a supply chain exponentially higher than they’ve even been, small to medium sized business can’t afford their now Tariffed supply chain and don’t pay.
That’s how the money disappears. Whatever industry Tariffs are added to is now an industry that small to mid size companies can no longer afford to manufacture in. Which lowers the total value of that market as the profits smaller businesses had are now captured and destroyed by Tariffs.
Without Tariffs, the supply chain is affordable. With Tariffs, it’s destroyed and doesn’t magically come back.
Soy bean market? Literally no more future profit potential now that our largest buyer has gone elsewhere.
Tariffs just effectively convert long term viable market wealth to short term government wealth in a time when markets are already suffering.
In no reasonable calculation will the gains of any Tariff offset the long term losses in the market those Tariffs destabilize. There’s literally hundreds of years of historical evidence supporting this as the outcome.
The commenter above said “The money exacted for tariffs leaves circulation is entirely, it’s basically destroyed.” They are talking about money that was spent on the tariff already. What you are talking about is the larger impact tariffs have on the economy.
I am not on the side of tariffs. I’m not against them on principle, but the implementation has never really been stellar. I appreciate your perspective, but in my opinion the OP made a somewhat misleading statement that is not really related to your point. People could walk away thinking that tariff money is basically just put in a big pile and incinerated. The money continues to exist and in fact could be directed toward a specific thing. So if we build luxury yachts here and people start importing them, we can add a tariff to them and allocate those funds to retraining programs for people who used to make yachts. I’m not advocating for that, but in that case the money would reenter in a specific location and affect a specific sector.
Tariffs only go to the government when people can actually afford to pay them.
When Tariffs jack up the costs of goods in a supply chain exponentially higher than they’ve even been, small to medium sized business can’t afford their now Tariffed supply chain and don’t pay.
That’s how the money disappears. Whatever industry Tariffs are added to is now an industry that small to mid size companies can no longer afford to manufacture in. Which lowers the total value of that market as the profits smaller businesses had are now captured and destroyed by Tariffs.
Without Tariffs, the supply chain is affordable. With Tariffs, it’s destroyed and doesn’t magically come back. Soy bean market? Literally no more future profit potential now that our largest buyer has gone elsewhere.
Tariffs just effectively convert long term viable market wealth to short term government wealth in a time when markets are already suffering.
In no reasonable calculation will the gains of any Tariff offset the long term losses in the market those Tariffs destabilize. There’s literally hundreds of years of historical evidence supporting this as the outcome.
The commenter above said “The money exacted for tariffs leaves circulation is entirely, it’s basically destroyed.” They are talking about money that was spent on the tariff already. What you are talking about is the larger impact tariffs have on the economy.
I am not on the side of tariffs. I’m not against them on principle, but the implementation has never really been stellar. I appreciate your perspective, but in my opinion the OP made a somewhat misleading statement that is not really related to your point. People could walk away thinking that tariff money is basically just put in a big pile and incinerated. The money continues to exist and in fact could be directed toward a specific thing. So if we build luxury yachts here and people start importing them, we can add a tariff to them and allocate those funds to retraining programs for people who used to make yachts. I’m not advocating for that, but in that case the money would reenter in a specific location and affect a specific sector.