Quote:
Originally posted by Skunk:
Tarrifs are not the answer - that only encourages firms to maintain the same uncompetitive status-quo. Rationalisation, modernisation and the development of new industrial sectors provide the answer.
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Tariffs can and do work usually in very specific areas and for short periods of time. A famous example was the pitiful state Harley Davidson was in during the early 1980's. A tariff was placed on imports of motorcycles over a certain size. This gave HD time to restructure and boy just look at them now! It also added further investment in manufacturing of motorcycles in the USA by Japanese companies.
Well targeted, short term tariffs can and do work, those ill thought out tariffs both upfront *steel* and hidden *farm/Boeing ect* usually do have long term negative impact for the country and unwanted side affects on innocent 3rd party countries like Australia.