Want to pay more for your car? Support a tariff on steel from China. Low-cost steel makes American made cars, pots and pans, lawnmowers and anything made of steel less expensive for Americans including most American workers.
A tariff is a tax. It raises the price of an imported good for all Americans. Some analysts advise that tariffs cause a decrease in product quality as the importer ties to recover some of the additional cost of the tariff.
Some American workers lose their jobs when steel is imported. Most Americans save money when they buy products made with low-cost Chinese steel without tariffs. Americans wind up paying for the tariffs imposed on Chinese steel .
Low-cost Chinese steel benefits 319 million Americans. There are 320 million Americans and about, unfortunately, 700,000 American steel workers lose their jobs when American manufactures use Chinese steel. Compare 700 million to 319 million. the advantage is 456 people benefit for each steelworker who is penalized but what about the unemployment benefits that go to the displaced steelworkers?
Steelworkers have some of the most powerful unions in the world. they protect their workers especially when tragedy hits and they are out of work. The displaced steelworkers still maintain their income although at a slightly lower rate in some cases. In many cases the displaced workers get additional benefits they do not get when they work. Losing a job can be tragic but money soothes the tragedy and many times their lifestyle gets better as they collect benefits while not working. Many join the underground economy and get even more money while those who employ them off the books pay less to get work done.
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