Ot isn't about the capital allocation of individuals persay. It's how the whole economy shifts towards producing ressource A instead of of ressource B.

Let's say it used to be more profitable to produce ressource A instead of ressource B but the tariffs changed that. They would essential be producing something that is more profitable only because the state influenced in that way. Not because it is truly more profitable (and therefore better for society as a whole) to produce it.

In the long run this is what I see. Americans producing more cars instead of doing something else because the state didn't want Chinese cars even tho they were same quality at a lower price.

(This specific example is pulled out of my ass but this is the principal..)

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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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I get what you’re saying. You may be right, I’m just a pleb. For devils advocate sake tho, now that car is made here by an American citizen with American steel that benefits both that guy and the guys that made the steel. The purchase price would be higher but that money would filter more through our economy instead of say china. I’m pulling this out of my ass too, most likely just like the politicians are as well. It will be interesting to see how this plays out. We are the experiment and have been for some time.

If doing the cars here today was the best choice they would all be made here today. The reason they aren't is because we found something more productive to do. The Chinese are better than us at making cars.

Our ressource aren't infinite. If we are making cars here, it is likely and almost certain the we would be pulling ressources (like labor) out of an other field.

If it was really as easy as "buying local is better" then why wouldn't they US put a 100000% tariffs on t-shirts to be sure they are all made here?

(I appreciate the convo it's ok if you're pulling things out of your ass)

I’m all about open markets, capitalism, water seeking its own level without overreach and manipulation. We’re on the same team fren. Nice chat