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by megaman821 424 days ago
No, what if the tariffs go away before you are done building your widget factory. Now you have widgets that are too expensive to sell to anyone.

If they want anyone to believe that the tariffs will remain in effect long enough to make a profit, they will need to pass a bill. Ideally, a bill that ratchets tariffs up over a long enough period of time to actually build the capacity in the US of the thing you want to tariff.

2 comments

Still not sure a bill will give you that stability, since Trump has used loopholes to sidestep ratified trade agreements that he himself negotiated. Anything signed by this President isn't worth the paper it's printed on.
A bill wouldn't provide any security. It'd just be repealed as soon as the economic stagnation set in. If you wanted to build a factory through socialist policy, the only way to do it would be to cover the capital costs with direct investment by the treasury.