The argument was that wages rise if labour is scarce. My counter is that labour will just be moved outside with the people, thus countering the scarcity, thus making wages stagnate rather than increase.
Somehow tariffs are supposed to balance this out. Which is really the nonsense in all of this.
Yes, to some extend they can achieve that, if they are high enough to cancel out the wage differences.
But they have a lot of additional effects. Companies with small margins that import ressources will have to raise prices to stay profitable, others will do it because they can riding the wave of those that must. All in all tarrifs just raise prices.
Thus the nominally raised wages stagnate in buying power.
So either the wages stagnate without the tarrifs because the work follows the cheap labour or they stagnate because tarrifs raise the prices alongside with the rising wages. The tarrifs achieve nothing for the buying power of consumers.
The argument was that wages rise if labour is scarce. My counter is that labour will just be moved outside with the people, thus countering the scarcity, thus making wages stagnate rather than increase.
Somehow tariffs are supposed to balance this out. Which is really the nonsense in all of this.
So you have no rebuttal to tarrifs stopping companies from moving manufacturing outside the US.
Yes, to some extend they can achieve that, if they are high enough to cancel out the wage differences.
But they have a lot of additional effects. Companies with small margins that import ressources will have to raise prices to stay profitable, others will do it because they can riding the wave of those that must. All in all tarrifs just raise prices.
Thus the nominally raised wages stagnate in buying power.
So either the wages stagnate without the tarrifs because the work follows the cheap labour or they stagnate because tarrifs raise the prices alongside with the rising wages. The tarrifs achieve nothing for the buying power of consumers.
You don’t have to completely offset wages with tarrifs just make the ROI on moving take 10 years.
The steal tarrifs Trump used led to increased production in the US while Europe production stayed the same. Tarrifs do not have to hurt buying power.
Based on your arguments I assume you’re against minimum wage too.
That wouldn’t be accurate. I am for global taxes and minimum wages to stop the whole “we’ll just move the company elsewhere” bullshit all together
Yes, the buying power of consumers will take a hit from tariffs.
At first. But many of those consumers will benefit from increased wages.