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| if your farm is a sole proprietorship, you impose indirect "tariffs" on who you do business with. the chemical/seed dealer that doesn`t treat you as fair as they treat other of their customers, you take your business elsewhere. in that case the buck stops on your desk.
in the case of a country "price" is the ultimate driver among consumers that doesn`t take larger consequences into account. a tariff is a "sin tax" for costs of hollowing out the living wage manufacturing jobs that are lost from seeking foreign produced goods based solely on price. ie, taxes and deficits go up if there are social costs of a segment of under-employed people. quick example, if we made a 27" television set in the US that cost $1,000 that would be the true cost of production. i know that 84" chinese made flat screen for $400 at walmart is nice, but it was made with slave labor and excess pollution.
we cheer other sin taxes such as extra cigarette tax because of the lung cancer and other societal costs that taxpayers will ultimately bear from repercussions of smoking. it`s not much different from costs from sins of hyper-consumerism. | |
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Your farm has a trade deficit
