An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
If a tariff makes a price higher then alternative suppliers in other locations produce more, and no one pays the tariff, production simply shifts to a newer lower cost locale. In the case of China, costs were higher than alternatives in China, companies simply produced there for historical reasons. By expediting their moves to lower cost facilities and adopting newer, more advanced manufacturing, prices are likely to fall as a result of escaping the backwards, leftist authoritarian system in China.
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If a tariff makes a price higher then alternative suppliers in other locations produce more, and no one pays the tariff, production simply shifts to a newer lower cost locale. In the case of China, costs were higher than alternatives in China, companies simply produced there for historical reasons. By expediting their moves to lower cost facilities and adopting newer, more advanced manufacturing, prices are likely to fall as a result of escaping the backwards, leftist authoritarian system in China.
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