Forum Discussion
Bedlam
Jan 10, 2017Moderator
otrfun wrote:Bedlam wrote:Absolutely true. With this in mind, how does an American corporation compete with another competitor who's willing to take advantage of these disparities to produce the same product more cheaply?
Cheaper labor, less worker safety, less restrictions on pollution, lower tax rates...
Trade tariffs with countries that do not hold the same safety and pollution standards as our own have been used in the past to somewhat equalize pricing. However, adding tariffs to subsidize higher worker pay in the US does not seem like the solution - This will just allow our labor costs to spiral upward due to artificial controls.
Foreign countries that dump cheaper products on our shore due to government subsidies are another target for tariffs. This ploy is typically used to undermine our manufacturer base so they become the sole source. I'm all for competition that brings the best value to consumers, but let's play nice.
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