This article talks about the last decisions that Trump's administration is doing related to tariffs, more specifically for solar panels and also washing machines not so long ago. The article is arguing that according to most of the economists these decisions are going in the wrong direction because they should be trying to move towards free trade and not away from it. It is true that in the short run this decision is going to save some jobs in these industries because they are not going to have competitions from different countries, but in the long run, this is not going to be beneficial to the economy as a whole. There are 3 articles mentioned that show why free trade is a better option in the long run, and how most of the countries that have decided to have free trade have been growing a lot more compared to countries that have strong tariffs. In my opinion, these decision to raise tariffs is more a political move and not thinking about the economy, because this is going to affect the economy in the long run, but at this point, it might get Trump and his administration more acceptance because he is saving many jobs, but at the end he should think what would be best for the country in the long run even if people lose some jobs, because they could get training and get a job ion a different industry.
https://www.nytimes.com/2018/02/16/business/trump-economists-trade-tariffs.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business®ion=rank&module=package&version=highlights&contentPlacement=13&pgtype=sectionfront
5 comments:
I completely agree with the article, there are repercussions in other industries from Trump's tariff decision, by saving jobs in one sector he is hurting others, as well as damaging international relations. This is a bad sign for our economy in the future.
The article states its concerns regarding this imposed policy, somewhat I think it's a short-term strategy to protect U.S economy, but I definitely agree negative impacts will occur in the long run.
I one hundred percent agree. Using tariffs as a form of protection to domestic industry promotes inefficiency for others around the globe. However, at the same time, people keeping their jobs from this most likely see this in a very different light.
The author brings an interesting point that it may not be the trade restriction but the government policy that slows growth. However, the pros of free trade outweigh the pros of restricted trade.
I believe the strong tariff is against the globalization, and one country could not produce everything people want. There is no doubt that tariff could protect the domestic industries and labors, but it means there would be less competition in the domestic market. If the free trade comes in the future, how could the domestic industry compete with international industries.
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