Tariffs: Are They Too Populist or Is There a Conservative Case for Them?

Townhall.com ^ | February 28, 2022 | Rachel Alexander

[who_would_fardels_bear]

BoomerCons: Are they really conservative or just another bunch of RINOs?

[Gaffer]

Tariffs fell by the wayside when Congress figured out they could just tax the crap out of its own citizens for what they wanted instead of charging foreign entities via tariffs. Why not? It turned out easier to brow-beat citizens than getting foreigners to pay tariffs.

[who_would_fardels_bear]

People buy used Rolexes for three times MSRP when there are other better watches to be had at a significant discount. So, no, people don't always want to pay the least amount.

The simplistic demand and supply curves we were taught in Econ 101 are not the be all and end all of the human condition.

[Alberta's Child]

People buy used Rolexes for three times MSRP when there are other better watches to be had at a significant discount. So, no, people don't always want to pay the least amount.

1. "Better" is a very subjective term in this context. Someone who buys a used Rolex for three times MSRP isn't looking to buy a watch. He's looking to buy a Rolex. Anyone who pays three times MSRP for a Toyota pickup truck when he can get the exact same model at a dealer down the street at the listed price is either retarded or is laundering money.

2. The factors I've described here are absolutely applicable when aggregated across large groups and geographic scales. If people and businesses aren't interested in paying less for things in general, then why have "free trade" at all?

[semimojo]

...they could just tax the crap out of its own citizens for what they wanted instead of charging foreign entities via tariffs.

US tariffs are paid by us, not foreigners.

[semimojo]

So, no, people don't always want to pay the least amount.

They want to pay the least amount for a Rolex.

They don't always want the cheapest product, they want the lowest price on any given product.

[Gaffer]

They are paid for by the importer, but the effect is to raise the prices of the INCOMING goods. In the end, the consumer pays the price but that price has some measure of consumer choice in it with respect to choosing not to buy and opt for another source not tariffed.

[semimojo]

...the consumer pays the price but that price has some measure of consumer choice in it with respect to choosing not to buy and opt for another source not tariffed.

Right. It's the government taxing products from one producer to subsidize another, favored, producer who can't or won't match the cost of production.

[escapefromboston]

Income tax is paid by Americans and they can’t avoid it. I could just not purchase foreign goods or (ideally) buy a similar product made in America.

[who_would_fardels_bear]

People also want to be gainfully employed and they don’t all want to learn to code.

[who_would_fardels_bear]

An important point of the demand and supply curves is that if one producer is supplying product at a high price then other producers will come in and provide equal or better products at lower prices resulting in a new equilibrium. However, Rolex marketing has been so successful that for many people there is no substitute.

Econ 101 doesn't account for marketing so people still buy iPhones when there are less expensive options with as many or more capabilities.

Econ 101 doesn't explain OnlyFans where men throw hundreds or thousands of dollars at women they have no hope of ever meeting.

Econ 101 doesn't explain the global response to COVID which has had a more important impact on the average person than the relative price of a Big Mac vs. a Whopper.