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Joined 2 years ago
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Cake day: July 22nd, 2023

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  • Here’s what I would tell someone that thinks manufacturing is coming back.

    Say you’re a factory owner and goods are costing too much to import from China. Your trusty Excel sheet tells you that, with the tariffs, you can make your widgets for the same price in America.

    But you’re a smart capitalist! You know these tariffs are going to end up wildly unpopular and will be rescinded sooner rather than later. In any case, the economy may tank and no one will be able to afford widgets.

    Yet another problem is that tariffs will make American widgets toxic on the international market. Canadians are already looking to shed American imports.

    Now are you, Mr. Smart Capitalist, going to risk building an American factory and get left holding the bag?

    Alternate:

    “Know what the Smoot-Hawley Tariff Act was?”