“Tariffs Protect All Americans.”

garynorth.com / Gary North / March 01, 2017

Whenever the government intervenes, there are winners and losers. Follow the money.

A popular slogan in favor of tariffs is this one: “Tariffs protect Americans.” It is an accurate slogan. The question is: “Which Americans are protected?” Another question is: “Who pays?”

In this world, you don’t get something for nothing. If some Americans are protected, then other Americans are paying to grant them this protection.

Who are the winners? Who are the losers?

The winners are a relatively small percentage of American workers who produce goods at higher prices with lower quality than imported goods offered to consumers. The only reason why these workers need protection is because they are not efficient workers.

Who judges efficiency? Consumers do. The heart of the free market system is this: people who spend money have final authority in the economy. This means consumers. Any attempt by the government to intervene in the economy to help special interest groups always comes at the expense of consumers who would have bought whatever it was that competitors were offering for sale, but who are unwilling or unable to buy the goods because of some government regulation.

A tariff is a sales tax on imported

Read more ... source: The Bitcoin Channel

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