I'm not an economist. On one hand, you can make the argument that I don't have the advanced education and resulting philosophy to understand the nuances of international commerce...and you'd be correct. On the other hand, I then must base my understanding and opinions on life's experience, personal observation and common sense. Maybe good, maybe bad but it is what it is.
I observe that the cheaper an item is in the store, the more likely that it is made/produced in another country and imported to the United States. International trade. Walmart is an excellent example. Part of the reason that Walmart can out price our locally owned small businesses is because Walmart buys in huge lots, getting a volume discount for the goods they market. The other, very obvious, reason that things at Walmart are so much cheaper is because it appears that a large percentage of their goods are made in China. Chinese production has very little overhead since their workers are little more than slave labor and they take no notice of environmental concerns. The same can be said about many of our international trade partners.
So, if President Trump slaps tariffs on their imported goods, that increases their over head, thus increasing prices. I would think that would then negate the advantage of buying foreign goods over American Made. If pricing is comparable, then the (usually) higher quality American Made products sould be more attractive. Also, local small business, fighting the Big Box Stores, are suddenly on a price parity with those big chain competitors, which should make local businesses even more attractive to the customer base.
The complaints I hear, from the highly educated and thus much better informed economists, who are crying about President Trump's tariff ideas, is that the tariffs constitute what amounts to a sales tax on those imported goods, because the tariff prices will be passed on to the consumer. This is a case where the economists and I are in total agreement. Tariffs will increase the prices of imported goods.
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| American Apparel factory: L.A. California |
So. What's the solution, for those of us on the consuming end? Seems pretty simple to me. If the toaster, car, package of steaks or vacuum cleaner, which has been imported from another country, is of equal or greater cost than the same product made right here in America...BUY AMERICAN! The job you save may be your own!
Maybe Walmart will find it advantageous to begin stocking their shelves with the higher quality American Made products, since there will no longer be such a profound wholesale price difference. Maybe Costco will begin stocking meat products produced in the United States instead of Canadian or Australian beef or pork. Maybe more Fords, Chevys and Dodges will be sold than KIAs and Hondas.
It just seems so simple to my uneducated and unsophisticated mind. If tariffs create more demand for American Made goods, then more American jobs will result, creating more wealth for Americans, who will then use that wealth to buy more American made goods, which will result in more American jobs, which will result in more wealth with which to buy more American made products. Hmmm?
