On Sat, 11 Jun 2005 17:34:04 GMT, james wrote
in :

On Wed, 08 Jun 2005 08:59:32 -0400, Dave Hall
wrote:

Tariffs have nothing to do with inflation directly. But it can
stimulate it by initiating price increases.
******

Tariffs if used on short term basis will have small effects on
inflation. When used as a part of long term policy and become over
bearing then they can become a direct cause and effect to inflation.
Producers can absorb costs spikes that are one time occuring or short
term. If they remain long term then the producer must pass the cost of
tariffs on to the consumer in higher prices. Thus infaltion.


The price of foreign products goes up as a result of import tariffs,
which encourages increased domestic production and the creation of
more jobs. The higher prices are therefore offset by the resulting
stimulation of the domestic economy. The important thing to note here
is that import tariffs don't stimulate the economy if they are used
for just one or two products -- it needs to be a comprehensive package
that includes across-the-board import tariffs on finished products,
export restrictions on raw materials, tax incentives/penaties against
US coroporations that operate mostly inside/outside the border, etc.

The problem with such a package would be that certain treaties and
trade agreements would need to be repealed. But since most of those
agreements were made at the prompting of politicians that were later
hired by foreign corps (or US shell corps) that directly benefited
from those agreements, dropping those trade agreements shouldn't be a
problem after a little public education campaign.


But hey, it's never going to happen so I'll just go replace a few
hoses in the truck and be quiet.







----== Posted via Newsfeeds.Com - Unlimited-Uncensored-Secure Usenet News==----
http://www.newsfeeds.com The #1 Newsgroup Service in the World! 120,000+ Newsgroups
----= East and West-Coast Server Farms - Total Privacy via Encryption =----