What Tariffs Actually Do

“Does a tariff on imports also reduce exports?” – Dr. North

Tariffs are taxes that the government instituted to be paid on imports to “protect” us from foreign competition. They restrain us from purchasing imported goods/services that we want. It makes goods/services more expensive for the consumer.

tariffs

Pro-tect-tion-ism

noun

The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports. 

Protectionism is a misnomer. The only people protected by tariffs, quotas and trade restrictions are those engaged in uneconomic and wasteful activity. Free trade is the only philosophy compatible with international peace and prosperity. – Walter Block

Tariffs will definitely reduce exports. People in foreign countries paying these tariffs will not have as much money to buy our exported goods. In turn you will not have as much money to buy their goods. When this happens no one is getting what they want but the government.

It is also important to note here that tariffs will cause a decrease in competition thereby causing a decrease in quality of product. When there are less people to sell to it only makes sense that product standards will go down because companies feel less threatened. When the product is less available and we do not have many options we will pay a higher price for a poorly made item.

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Small Business or Apprentice?

When asked the question of whether I would prefer to start my own small business or take a minimum-wage job as an apprentice to a mentor the choice, for me, is clear. I would definitely choose my own business. I do realize working for an apprentice could be beneficial if you know exactly what you want to do in the future. For me, however, starting my own business gives me a great opportunity to continue to build on that business and branching out in other areas. In my Economics Course on The RP Curriculum I touched on this a little with the assignment, “Is it worth my time to get a part-time job at the minimum wage?” Here is the link https://donnihulbert.wordpress.com/2016/10/14/getting-a-part-time-job/  I suppose taking a minimum-wage job with a mentor could give me experience that I could roll into my own business and that would be the only reason I would choose this route.

There are several reasons for wanting my own business. The freedom of making my own schedule is very appealing to me. Also, there may be tax benefits for entrepreneurs like writing off travel and dining. Job security is another good reason, I do not have to worry about getting fired. If my business does really well maybe I can do good things with my profits like sponsor a charity. That would be a great feeling. There is also the recognition I might get as there are many awards out there for entrepreneurs. Financial independence is another great reason. Actually this is probably the biggest reason I want my own business. If my company is successful maybe I can create jobs helping the economy, or maybe I can even be a mentor someday.

The pride involved in building my own business and seeing it grow and become successful would be so gratifying. I do not think this feeling can be matched by working for someone else. Also having my own business is something that perhaps I could pass on from generation to generation in my family.

Who does not love new experiences and the excitement that comes with them? If I am sitting in an office with a job title my daily routine would be the same. Running my own business will probably guarantee new challenges bringing with them new experiences and always keeping me on my feet.