What would the information in this chapter predict about the effects of the steel tariffs? Does your article support those predictions? How has the steel industry responded? How about other industries that use steel as an input? Who was helped and who was harmed? Would you recommend tariffs in the future? Why or why not?
1. I would say that the chapter affects the idea of the consumer and producer surplus, the consumers had to pay 25% more for steel and 10% more for aluminum so they started turning to the domestic market which shot the prices up roughly $200 per ton, yet still cheaper than getting steal from oversees.
2. The article that I chose did support the above mentioned situation, domestic producers of steel faced an increase in surplus due to the tariff in addition to the average price of steel skyrocketing, along with a deafening loss of consumer surplus due to the consumers having to choose between paying a 25% tax on steel imported, or pay the increased price of domestic steel.
3. Industries that made nails our of Steel, for example, paid a lot more to make the nails, but sold them for much much more than they used to be able to, but Iâm not sure whether or not that offset the loss that they faced due to the increase in steel price.
4. The domestic market was helped incredibly, creating roughly 1000 steel jobs in the US alone with increasing revenue for steel producers, but unfortunately the story isnât the same fo the exporters.
I donât necessarily believe there is any reason for tariffs, yes they help jobs here, increase markets there, but if we all focused on what our countries had a comparative advantage in and make a global market then we would be well off. Yet again, Iâm not a professional in this.
After reading these essays what do you think about protecting manufacturing industries from international trade? Who is benefiting from the tariffs on steel and aluminum? Who is losing? Do you think more people will benefit than will lose? Why or why not?
http://www.becker-posner-blog.com/2012/04/concern-about-the-decline-in-manufacturing-in-the-united-states-becker.html
1. I believe domestic manufacturing industries should be protected.
2. Domestic manufacturing industries are benefitting from the tariffs on steel and aluminum since they must satisfy the demand of steel ad aluminum in lieu of an incredible decrease of steel and aluminum imports. Thus increasing their profits and they begin creating more jobs since they need to produce more of the product.
3. In reality i can only see the world market as the real loser, having a world power deciding to trade with specific countries or else their people will be taxed seems incredibly crippling in the idea that the price of something will go up. I believe that the positive effects of the steel tariff outweigh the negative effects, just because it increased jobs made production more domestic and helped thousands of people
Look up the employment trends in manufacturing. (Try the Bureau of Labor Statistics). When did manufacturing employment reach its peak? How about manufacturing output? Why do you believe manufacturing employment is declining while output increases?
1. June 1979 seems to be the peak of manufacturing employment.
2. 2001 seems to be the year that manufacturing output was at it all time high in the 21st century.
2. This is an easy question, although we all hate to admit it but machines are incredibly faster than human beings the more we make machines do, the better/ more efficient the outcome. Unfortunately, once again we hate to admit it, employers donât need to pay machines a salary.