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Tariffs distort market signals and function similarly to subsidies. They make goods or resources that were previously unprofitable to produce locally seem viable. However, this isn't a true gain in efficiency through innovation or technology. It’s an artificial shift driven by state intervention.

When we imported goods from countries that were more efficient at producing them, we could allocate our own limited resources to areas where we held a comparative advantage. State intervention in the market disrupts this natural flow and leads to capital misallocation, hindering true economic progress.

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BottleTeams 11mo ago

The academic tariff playbook assumes countries don't weaponize their currency and reduce their populous to slave labor. This is the world we live in and tariffs are the only defense against that.

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Discussion

Leathermint 11mo ago

I'm not sure what you're trying to say.

BottleTeams 11mo ago

If another country produces goods with save labor (eg. China through excessive currency devaluation) a country that does not excessively devalue their currency along with them loses all their domestic production through outsourcing (eg. The US)

The only way to defend against this is through tariffs.

The reason the US has to play the currency devaluation game is because of China. This is why we're in this situation in the first place and why #Bitcoin was created to defend against this attack vector.

Russia for example has not played the currency devaluation game; and has sky high interest rates to defend against outsourcing. The result is a totally stagnant economy but a "sound" currency. The US cannot have the world reserve currency along with high interest rates (by default we should have the lowest interest rates) so we cannot compete in the currency devaluation game with China. Bitcoin is the mechanism that resets the currency devaluation game.