The argument was that wages rise if labour is scarce. My counter is that labour will just be moved outside with the people, thus countering the scarcity, thus making wages stagnate rather than increase.
Somehow tariffs are supposed to balance this out. Which is really the nonsense in all of this.
Yes, to some extend they can achieve that, if they are high enough to cancel out the wage differences.
But they have a lot of additional effects. Companies with small margins that import ressources will have to raise prices to stay profitable, others will do it because they can riding the wave of those that must. All in all tarrifs just raise prices.
Thus the nominally raised wages stagnate in buying power.
So either the wages stagnate without the tarrifs because the work follows the cheap labour or they stagnate because tarrifs raise the prices alongside with the rising wages. The tarrifs achieve nothing for the buying power of consumers.
You must have missed the reply two comments up.
https://lemm.ee/post/47845390/16367562
You must have missed my response to that
https://lemm.ee/post/47845390/16368689
I read your non-response, which is why I asked how wages will stagnate to your response to tarrifs.
The argument was that wages rise if labour is scarce. My counter is that labour will just be moved outside with the people, thus countering the scarcity, thus making wages stagnate rather than increase.
Somehow tariffs are supposed to balance this out. Which is really the nonsense in all of this.
So you have no rebuttal to tarrifs stopping companies from moving manufacturing outside the US.
Yes, to some extend they can achieve that, if they are high enough to cancel out the wage differences.
But they have a lot of additional effects. Companies with small margins that import ressources will have to raise prices to stay profitable, others will do it because they can riding the wave of those that must. All in all tarrifs just raise prices.
Thus the nominally raised wages stagnate in buying power.
So either the wages stagnate without the tarrifs because the work follows the cheap labour or they stagnate because tarrifs raise the prices alongside with the rising wages. The tarrifs achieve nothing for the buying power of consumers.