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re: Do you think it is fair that Chinese automakers can use Mexico to ship cars tax free?
Posted on 3/19/24 at 9:59 am to RogerTheShrubber
Posted on 3/19/24 at 9:59 am to RogerTheShrubber
quote:
US automakers will be forced to adapt and become leaner, more cost efficient and will put lower pressure on auto prices.
In a free market, yes.
In a protectionist market, they can continue to drive cost up and quality down.
Posted on 3/19/24 at 10:00 am to YouKnowImRight
quote:
In a protectionist market, they can continue to drive cost up and quality down.
Exactly.
It appears many "republicans" have no concepts of markets or how they function.
These baws have bought into central planning.
Posted on 3/19/24 at 10:08 am to YouKnowImRight
quote:
In a free market, yes.
In a protectionist market, they can continue to drive cost up and quality down.
When quality goes down that is the signal to central planners to lower taxes on imports to stimulate competition.
It's called regulated markets. A capitalist society needs regulated markets.
The goal of a capitalists society is to make society as free as possible so people can move up and down the economic latter as freely as possible, i.e., maximize economic opportunity.
Without regulated markets monopolies, duopolies, oligopolies become the oppressors and stifle overall economic growth for society as a whole and stifle economic opportunity for individuals.
Tariffs are only one tool in the toolbox for regulated markets. Any tool in the tool box can be abused or misused. However used properly by responding to market feedback tariffs can be used to help maximize economic opportunity in the U.S.
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