I will be giving you some information on Tariffs and the two types. I will also be giving my counter arguments to Wendy's support of tariffs and trade protection measures. The three points that I will be counter arguing will be tariffs encourage Americans to buy US made products, tariffs protects workers and wages, and tariffs helps to maintain a favorable balance.
I am going to start off by giving you a little information on tariffs. "According to our text there are two kinds of tariffs. The first is protective tariffs (import taxes), designed to raise retail price of imported products so that domestic goods will be competitively priced. The second is revenue tariffs, which are used by developing countries to help infant industries compete in the global market."(P.87)
Wendy argues that tariffs encourages Americans to buy Us made products, but in fact the people are looking for what is in their best interest, and really don't care if something is made in America or funded by American banks. If consumers have to pay higher just to get something from the US then they would probably go with getting capital products made by other countries at a cheaper price. In our text it states "Uninterrupted flow of capital gives countries access to foreign investments, which help keep interest rates low."(P.69")
Another counter argument is that tariffs protect workers and wages. But I have learned that tariff has increased the prices of materials and the products, making things more expensive for the consumers. By adding additional monies to prices hurts trade and goes against what the consumers wants and that is cheap pricing. "Global competition and less costly imports keep prices down, and to inflation does not curtail economic growth" (P.69)
The third argument of Wendy's is that tariffs help to maintain a favorable balance. Sometimes when you trade, it won't always be about what is favorable to the countries, but it goes upon what the...