re: My hero Javier Milei releases lengthy statement on tariffs

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If a tariff would create more jobs domestically resulting in additional tax generation it could outweigh the relative increase to prices

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First of all—and I post this here all the time—the jobs that will be created by bring more manufacturing back to America are not high paying jobs. The average factory worker makes $17 an hour here. The tax base addition from 10 million new $17 an hour jobs is going to be basically nothing. People making $17 an hour don't pay much in net federal income taxes.

If we weren't deficit spending and didn't have umpty-nine Trillion dollars in debt to pay down, maybe what you are saying would make sense based on collecting the tariff themselves. Because in that case we could theoretically lower taxes based on the additional revenue coming in from the tariffs.

But do any of the tariff numbers even come close to offsetting enough taxes to be able to do that with the situation we've got?

EDIT: Nevermind, I looked it up. According to the Tax Foundation, a universal 20% tariff would raise $3.3 Trillion over 10 years. But when you factor in the cost of the economy shrinking due to the tariffs, the net is only $2.8 Trillion, and that doesn't factor in the additional shrinking of the economy caused by retaliation (which we're already seeing).

It seems like the net effect isn't significant.

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in the case of critical infrastructure like medicine or steel be justified as a national defense act.

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If it really is something that impacts national security then tariffs are not the way to go about it. The government should simply contract directly with domestic companies to provide whatever it is that is considered essential for national security. No tariffs needed for that, and we're guaranteed a supply of whatever it is.

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By replacing welfare takers with tax payers the impact is felt multiple times particularly if the money the worker spends is kept domestically rather than spent globally.

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What makes you think people will suddenly abandon welfare for a $17 an hour job?

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The rub is where you find trading partners bending you over, making sure American producers can’t compete in their markets. Then something has to be done, or you are all complicit in the destruction of those American producers.

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American producers are "destroyed" by not being able to compete equally in Canada and Mexico?

Seems like American whiskey producers, for example, were competing in Canada until someone decided to "do something" just recently.

Look, according to the International Trade Administration companies who export goods to other countries employed 10.2 million people, or roughly just under 7% of the American workforce.

100% of American consumers pay higher prices with us imposing tariffs.

You're causing 100% to pay more in order to protect 7%.

The math just doesn't work.

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American producers are "destroyed" by not being able to compete equally in Canada and Mexico?

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Did I say Canada and Mexico? I did not, but they are among the worst offenders of using tariffs to force the USA to subsidize their government.

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Seems like American whiskey producers, for example, were competing in Canada until someone decided to "do something" just recently.

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That would be Castro Jr you are talking about. Instead of working to bring some fairness to their tariff schedule, they decided to have a trade war they have no possibility of winning.

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Look, according to the International Trade Administration companies who export goods to other countries employed 10.2 million people, or roughly just under 7% of the American workforce. 100% of American consumers pay higher prices with us imposing tariffs. You're causing 100% to pay more in order to protect 7%.

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List for me the top 5 items that are not or cannot be produced domestically. Nobody forces anyone to buy imported products.

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I see the MAGA folks are not enjoying this thread very much, and are avoiding.

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MAGA guy here and I love this thread. Know why? Because guys like you prove you have no idea how things really work.

In short, Argentina has much different problems than we do, and different solutions are needed. I'm not going to explain all this to you other than to tell you that you thought you had a snappy reply and its just dumb.

Have a good weekend!

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I see the MAGA folks are not enjoying this thread very much, and are avoiding

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Hmmmmm. The article doesn't mention tariffs...