EconBuff #54 with Rex Pjesky
Dr. Rex Pjesky talks with me about tariffs. Dr. Pjesky describes what tariffs are and how the incoming administration views them. Dr. Pjesky presents a number of potential uses of tariffs, including revenue generation, negotiation, addressing the trade deficit, as a tool towards achieving national security ends, protecting fledgling industries, and protecting intellectual property. We explore the revenue implications of tariffs on trade and their historical use as revenue generators. Dr. Pjesky argues that economists have not thoroughly researched the use of tariffs as negotiating toosl. Dr. Pjesky explains tariffs might lead to retaliatory tariffs and what that might mean for a trade war. We discuss the conventional wisdom on tariffs in the field of economics. Dr. Pjesky details how tariffs, and other taxes, should be evaluated in light of their impact on the width of the tax base. Finally, we consider the trade offs between an income tax and tariffs and we conclude with Dr. Pjesky’s view on the administration applying broad tariffs across the board next year.
SE6: E2
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Music Credit: DUBONOMICS at https://www.youtube.com/@UCqXsGBa-OplAomMuPqmmPKg
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