@InfraBlue,
InfraBlue wrote:
livinglava wrote:
Stores and businesses north of the border don't have to raise prices to cover the tariffs, just as sellers in Mexico don't have to. Of course everyone wants to try to pass on cost-increases such as tariffs or other taxes, but the market doesn't have to allow them to.
So, according to your economic model, who pays for the tariffs?
I already explained it, but I'll try to make it simpler so you can understand:
If/when businesses south of the border hire/pay migrants to not migrate, they pay the tariffs to the (former) migrants they hire.
Then, of course, they will try to raise price for their buyers; but they would try to do that anyway regardless. It doesn't take a tariff to cause that.
If they don't stop the migration and the tariffs keep rising, they will eventually shift their business to selling where there are no tariffs on what they produce.
Now are you asking if people/businesses/government in the US maintain high wages and other business expenses, who will pay for those?
Answer: the same people who have always paid for them. It's just we had some temporary relief from cheap imports for a while.
While imports were cheap and without tariffs, US people/businesses/government were supposed to realize they needed to change things to complete with offshore economies.
They didn't, so now the pressure on them is going to increase by cutting off the cheap imports that have become an economic crutch.
Why not just start lowering production costs and creating a good, sustainable economy through reform? Why all this fighting about tariffs and who's going to pay them? Because economic reform is impossible? If so, why would that be? Because people don't want to change their habits and economic expectations? If that's the reason, how is any kind of reform for climate or social justice or anything else ever supposed to take place? Do you want to maintain the dysfunctional economy and just shift privilege around, like deck chairs on the Titanic?