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by colechristensen
435 days ago
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for countries that pay a worker $10 a day, put a tariff on the goods produced by that worker to total $10 for countries that pay a worker $15 dollars a day put a tariff on the goods produced by that work to total $4 therefore someone importing goods produced by one worker in one day from the lower wage country would spend $20 for the goods from the lower wage country but only $19 for the goods for the higher wage country giving a competitive advantage for higher wages obviously that is a simplistic example but that's what i mean using tariffs to incentivize better behavior and level the playing field so the most exploitation doesn't make the most money |
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But now you see that the low wage manufacturer has a third option, $10 labor + $1 markup + 10 tariff ($21), which would maintain their competitive advantage and in this scenario only cut their daily per employee profit by $2, as opposed to the $5 hit they would suffer by raising their employee wages to $15 day from $10.