@InfraBlue,
InfraBlue wrote:
living lava wrote:If/when businesses south of the border hire/pay migrants to not migrate, they pay the tariffs to the (former) migrants they hire.
You have an extremely erroneous understanding of how tariffs work.
I don't know whether it's dumber that you say what you say or that I take the bait and go on explaining it when you're just going to keep typing one-liner sentences that imply you have a clue, when in fact you probably didn't understand a thing you read in the post you're responding to. And now, because I accused you of being dumb and not understanding, you turn this exchange into an opportunity to accuse me of being prejudicial and discriminatory toward you.
No matter, the point is I explained EXACTLY how a tariff or any other tax motivates the tax payer to seek a less costly solution that avoids the tax/tariff.
If I make, say, DVDs and I have to pay 5% of what I sell them for in the US as tariffs, then it would be worth it to spend up to that amount on hiring would-be migrants so they won't migrate.
The incentive is even greater knowing that the tariff rate will keep increasing until the migration stops. In other words, if I don't spend 5% to make it stop now, I will be paying 10% later, or 15%, etc.
So it now makes financial sense for businesses operating south of the border to pay migrants not to migrate instead of paying tariffs.
What's more is that if the migration doesn't stop, then the tariff revenues will be spent on a wall.
Now you can say that the tariff costs will be passed on to US consumers, but if US businesses would just create US jobs to produce the imports, those tariffs could be avoided.
That's how tariffs also stimulate US job-creation.
This is not all to say that it wouldn't be fine to have a more efficient global economy that produces more with less jobs overall and then just ensure that everyone has adequate means of buying what's produced.
But that doesn't happen for numerous reasons. The major one is that when you provide people with welfare guarantees that afford them a basic standard of living, they supplement that assistance with illegal businesses, such as drugs and prostitution, which end up causing social problems and economic problems.
So when everyone is willing to behave themselves properly and accept a conservative standard of living that doesn't harm the environment, future sustainability, and cause social-economic problems to pile up; then it might be a good idea to create a hyper-efficient socialist global economy like China wants; but currently there is not enough self-discipline among the people of the world to exercise the liberty to make such a system work without it leading to massive abuses and exploitation that undermines the whole egalitarianism and humanitarianism of the communist ethic that is idealized.
In other words, when all the drug trafficking, human trafficking, and other abuses of liberty stop globally; then we can talk about a Global Green New Deal, or whatever you want to call it, but it will be one that actually works and doesn't cost so much it destroys the world it's pretending to save; i.e. because people will have developed the self-discipline by that point not to abuse the system before it can achieve what it's supposed to.