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re: Protectionism is not the answer
Posted on 2/24/17 at 11:44 am to Antonio Moss
Posted on 2/24/17 at 11:44 am to Antonio Moss
quote:
And creates inflation which in turn decreases revenue - unless of course you want central price controls which leads in a whole different discussion.
True, but it would also raise the dollar’s exchange rate, which could offset or cancel out some of these other effects in time. The impact on real GDP and employment would depend on how these effects panned out, and how the Federal Reserve reacted to the increase in inflation.
Posted on 2/24/17 at 11:46 am to CoachDon
quote:
And creates inflation which in turn decreases revenue - unless of course you want central price controls which leads in a whole different discussion.
True, but it would also raise the dollar’s exchange rate, which could offset or cancel out some of these other effects in time. The impact on real GDP and employment would depend on how these effects panned out, and how the Federal Reserve reacted to the increase in inflation.
Those assumptions are simply wild guesses. The last time we had a trade surplus and huge tariffs we did not have inflation---we had the Great Rosevelt Depression.
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