Hacker News new | ask | show | jobs
by genjii931 1064 days ago
Raising the price of imported goods via tariffs is designed to make domestic products comparatively price-competitive. Once you've driven all of your manufacturing offshore, tariffs won't work. While there are a few toolmakers left in the US, there are, for example, no cellphone makers, etc.
2 comments

Use of protective tariffs to shelter domestic production whilst developing that production capacity is in fact A Thing, and is actually a principle component of what is known as the American School of economics, which strongly influenced US economic policy from the 1790s through the 1970s, and had as a chief proponent Friedrich List (1789--1846).

A modern proponent is Ha-Joon Chang, particularly in his books Kicking Away the Ladder and Bad Samaterians.

<https://en.wikipedia.org/wiki/American_School_(economics)>

<https://en.wikipedia.org/wiki/Ha-Joon_Chang#Kicking_Away_the...>

No, it doesn't matter that there's no domestic manufacturing of X today. If you put a sufficiently high tariff on X you'll get it made locally sooner than later.

Tarrifs are crude but very effective centrally planned price signals.