Quote:
Originally Posted by PursuitOfHappinessParty
Tarriffs aren't directly a trade restriction, unless if taken in the strictest sense. Let's just say that import taxes (which level the wage differentials) aren't going to be enough to create an embargo situation. Cutting off your number one customer is serious business. The sactions to date have been more of a postering nature, and meaninful sanctions would be a hardship most if not all foreign countries wouldn't be too supportive of. How did I ever say I advocated more WTO sanctions?
If they did, it might be the tonic America needs to strengthen it's own industries, tho.
And it gets away from the point of how to pay for our defecit and become fiscally responsible without crushing taxation.
|
We can impose import taxes on non WTO members...but otherwise it would be enough to warrant serious sanctions....the only reason the sanctions haven't been serious is because we've rescinded the protectionist practices.
But I disagree with the notion that we should impose tariffs on other nations anyways...all it does is lead to higher cost goods...and a drop in real wages...not to mention retaliatory tarriffs imposed on our goods...hurting our exporting industries worse than they already are. And it breeds inefficiencies...which is why we're in trouble to begin with. Your argument was very popular at one time...especially in S.America. It's known as Import Substitution Industrialization, which is the brainchild of the Prebisch-Singer thesis and the infant industry argument.....but it's never worked out well....In fact the opposite is true...industries will be healthier when forced to compete globally...see Japan...