This comic misses the incentive for local businesses to chase the new profit margin created by the tariff.
If your competition is import goods, you may sell a quality product at $2, with the import version at $1.50. If the tariff causes the import to rise to $2.50, then the local capitalist will raise to $2.40. There’s no reason not to take the extra profit made from a selfish perspective.
Alternatively, the importer could leave the market. But now you have a monopoly, which again, is anti-competitive and leads to raised prices and malicious practices without consumer protections, which the administration seems to be firing.
These are great moves for capital owners to reshape and control market. Consumers will suffer.
This comic misses the incentive for local businesses to chase the new profit margin created by the tariff.
If your competition is import goods, you may sell a quality product at $2, with the import version at $1.50. If the tariff causes the import to rise to $2.50, then the local capitalist will raise to $2.40. There’s no reason not to take the extra profit made from a selfish perspective.
Alternatively, the importer could leave the market. But now you have a monopoly, which again, is anti-competitive and leads to raised prices and malicious practices without consumer protections, which the administration seems to be firing.
These are great moves for capital owners to reshape and control market. Consumers will suffer.