reply to post by mnemeth1
With a reduction in tariffs, what would prevent manufacturing jobs to be lost to other nations with lower wages, and thus, job loss in
Those industries that are currently protected by tariffs would either cut costs and get competitive or they would go bankrupt.
Are you serious?
They go overseas if tariffs are reduced.
They cut local jobs if tariffs are reduced.
They are still SELLING to Us, but they are no longer EMPLOYING us...
So, what exactly makes up the trade difference.
We can't count on their exports to balance our trade deficit anymore, and that effects our currency.
We can't count on them putting money back into the economy, and that effects our purchasing power.
So where do they get the 400,000 per job saved from? From the additional cost of steel to all other industries that utilize steel.
I don't think you fully understand global economics...
Yes, reducing tariffs is going to reduce costs... but it will lower the purchasing power of the local economy... which will result in a reduction in
the overall economic power of the local nation.
If you reduce the tariffs on steel, that extra savings will be passed on to those manufacturers that use steel. They will be able to produce
cheaper products and hire more workers with the cost savings.
Yes, they will be able to save costs... this does not automatically mean that they will hire more workers.
That is a presumption on your part.
So while the US steel industry will lose jobs, other industries that use steel in the US will gain enormously.
Yes... but your two examples are not equal are they?
US steel industry looses jobs...
Industries that USE steel Gain....
But you don't say they gain JOBS... because that would be a lie.
No, they gain PROFIT... not jobs.
So, we have a net loss of jobs, which effects the overall purchasing power of the nations economy.
Seriously... it's like you think that these things happen in a vacuum...
If noone EMPLOYES american workers... then AMERICA WILL NOT HAVE ANY MONEY TO PURCHASE THINGS FROM OTHER NATIONS.
Now... Answer the corollary question to my original question:
What do you think will happen to our economy if it has a net loss of jobs?