Remember, a tariff is really just a tax, the cost of which is imposed on the American people. The higher the tariff, the higher the tax. Imagine what a 45 percent increase in the price of goods made, say, in Japan would do to a middle class family shopping for a Toyota or Honda.Isn't this the whole point of tariffs -- to provide incentives to prefer domestic products? If I understand Levin, he thinks that the middle class family shopping for a Toyota or Honda is just going to pay the higher prices. That's the same sort of error that Congress makes when it assumes that raising taxes won't affect economic activity. Of course it will. In this case, the effect on economic activity is the whole point of the exercise.
Make Them Consider Buying A Ford?
Mark Levin is on point when he criticizes Trump's hypocrisy on free trade. But he loses me here:
By Grim on Monday, May 09, 2016