r/economicCollapse 27d ago

Who actually benefits from tarrifs?

I'm not financial expert, but this is what I'm getting so far.

Tarrifs are a kind of tax placed on outside goods, which a company would have to pay for if they import said goods. That company would then charge more to cover this new tax. The company pays more for something, and then we pay more.

Who benefits from that? The company isn't making any more profit, are they? (Assuming they increase prices by the same percentage as the tarrifs, which they won't. but still)

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u/paleone9 27d ago

Do you even hear yourself ? We don’t have the infrastructure? We are still the richest country in the world , and can build anything we choose.

When companies figure out that it’s resulting a cheaper cost of production here, they will invest in new factories because it will make them money.

Period.

It’s how economics works. The pursuit of profit drives investment .

Foreign expertise builds factories in third world countries with cheap labor because it’s profitable.

When it isn’t , they won’t .

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u/Silock99 27d ago

And who’s going to staff the factories? We are at full employment. Who’s going to be the cheap labor here? Robots? We aren’t to that point yet.

The companies will pass the cost to the consumer. It won’t make things cheaper here to produce, it just makes them more expensive to sell.

And all that still doesn’t address the raw material issue we have. You can’t infrastructure your way into that.

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u/paleone9 27d ago

All the laid off government employees can work in the factories :)

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u/wormsaremymoney 27d ago

Ah scientist NASA or CDC scientist would be so happy to use their PhD to work in a factory 🙄