Tariffs only go to the government when people can actually afford to pay them.
When Tariffs jack up the costs of goods in a supply chain exponentially higher than they’ve even been, small to medium sized business can’t afford their now Tariffed supply chain and don’t pay.
That’s how the money disappears. Whatever industry Tariffs are added to is now an industry that small to mid size companies can no longer afford to manufacture in. Which lowers the total value of that market as the profits smaller businesses had are now captured and destroyed by Tariffs.
Without Tariffs, the supply chain is affordable. With Tariffs, it’s destroyed and doesn’t magically come back.
Soy bean market? Literally no more future profit potential now that our largest buyer has gone elsewhere.
Tariffs just effectively convert long term viable market wealth to short term government wealth in a time when markets are already suffering.
In no reasonable calculation will the gains of any Tariff offset the long term losses in the market those Tariffs destabilize. There’s literally hundreds of years of historical evidence supporting this as the outcome.
Tariffs only go to the government when people can actually afford to pay them.
When Tariffs jack up the costs of goods in a supply chain exponentially higher than they’ve even been, small to medium sized business can’t afford their now Tariffed supply chain and don’t pay.
That’s how the money disappears. Whatever industry Tariffs are added to is now an industry that small to mid size companies can no longer afford to manufacture in. Which lowers the total value of that market as the profits smaller businesses had are now captured and destroyed by Tariffs.
Without Tariffs, the supply chain is affordable. With Tariffs, it’s destroyed and doesn’t magically come back. Soy bean market? Literally no more future profit potential now that our largest buyer has gone elsewhere.
Tariffs just effectively convert long term viable market wealth to short term government wealth in a time when markets are already suffering.
In no reasonable calculation will the gains of any Tariff offset the long term losses in the market those Tariffs destabilize. There’s literally hundreds of years of historical evidence supporting this as the outcome.