Raising tariffs on imported goods, such as those supplied to Walmart, would either raise prices to Walmart's millions of low wage customers or decrease profits and hurt their millions of shareholders, including pension funds that pay out to retired workers from many industries and others, some of whom derive income from the dividend, not to mention the many index funds (impacting 401K and IRA plans) that would be hurt as well. And we're not just talking about Walmart; the Trump goal is to raise tariffs on many goods from many countries and play a protectionist game with the world economy. When GDP growth has been accelerated worldwide by freer trade and the developing world has been helped immeasurably by freer trade policies by many countries. a reversal of that set of policies can only hurt the world's economic growth and hurt workers worldwide through either loss of jobs or higher prices.Kpdemello wrote:Yes. The concept of free trade has been stretched to allow US companies to leverage low labor costs in countries that treat their labor terribly (i.e. China) which, while it reduces costs, results in lowering wages both here and abroad. Allowing imports from such countries without a tariff is tantamount to supporting abusive labor policies. In short, it's bad for everyone, including the wealthy owners long term, who will find their market smaller because average workers can't afford to buy their stuff.Bubba wrote:Can I assume you would also support increasing tariffs on imported goods (i.e. suppliers to Walmart) would also be a good thing since it would theoretically increase prices for American made goods?
This is one of the few areas that I find strong affinity with Trump's policies.
Granted, however, that increasing tariffs would best be done on an international cooperative level as if a company based in the UK was able to leverage cheap labor in China and sell those good in the US without a tariff, that would just get around the whole point of the tariff.
What we have failed at in this country is to deal with the impact of freer trade on those industries and workers who are suffering dislocation as a result of these policies. Whether it be freer trade or policies to discourage coal, we should have had programs and policies in place to assist the workers affected.
Meanwhile, back to labor shortages in the seasonal resort industry, the subject of this thread. What Killington and other winter playgrounds are going through has also impacted summer resort areas throughout New England and, I assume, elsewhere. When we were in Maine this past June, we learned that the state needed far more seasonal housekeepers and others. When we were on Cape Cod in August into September, we learned the same about restaurants and hotels there as well. Did this force an increase in wages to attract more locals? Obviously, not enough to solve the shortage. Will next summer be different? We'll see. Will higher prices driven by higher costs reduce tourism? It depends on a number of factors but, regardless, letting the market work is the best solution.