> a dose of medicine for the consumer
seems like there's a risk of:
higher labor and materials costs leading to higher prices, leading to lower sales, leading to reduced revenue, leading to workforce reductions, leading to lower sales, leading to reduced revenue, leading to workforce reductions...
ie a basic recession spiral.
Re:Yield Curves Invert in U.S., U.K
by blackflame7000 on Wednesday August 14, 2019 @06:27PM
(#20700692)
An efficient market prevents any sort of death spiral. The objective of a tariff, just like the objective of regulation, is to encourage/discourage a certain practice but that doesn't mean there aren't ways around them if they become overly burdensome. For example, when environmental regulations become too burdensome, outsource the job to a place where those regulations aren't present. This is why environmental laws can easily put American companies at an extreme disadvantage and should be carefully considered. A lot of the higher costs you are worried about are self-inflicted because of all the ridiculous overhead required to run a business now a days.
People wonder where all this wealth inequality is coming from when it's as plain as day. The inequality is coming from the fact that large companies are taking jobs that were performed domestically, and shipping them overseas where there are less regulations and cheaper labor. They then sell that same good at the same price to the domestic consumer who no longer has that job. Do that with enough industries and only the people who actually own the company stand to come out on top. That is why the middle class is shrinking.