Re:Port of Los Angeles says shipping volume will plummet 35%...
by rayiner on Wednesday April 30, 2025 @02:08PM
(#43848827)
But it’s politically impossible to reduce the federal deficit. So what do we do?
Re:Port of Los Angeles says shipping volume will plummet 35%...
by s1artibartfast on Wednesday April 30, 2025 @02:50PM
(#43849257)
Not make it worse?
What problem is tariffs trying to solve?
If the goal is to plug the budget issue, you want imports to continue so that you can extract more tax from the citizens.
Even then, quality of life is less impacted if you just raise general taxes like a VAT or sales tax. That way consumers still get the best bang for their buck.
What is the upside from the tariffs?
Cost increases from onshoring are more than wage increases from onshoring.
There is no problem with trade deficits. Countries accumulating USD means they have to lend it back at cheaper and cheaper rates.
The real problem is the federal deficit. In 2024 the USA had to borrow $2 trillion to keep the lights on, while foreign countries only had $1 trillion from net trade deficit.