(no subject)
Feb. 28th, 2006 02:27 aminteresting (though slightly dated) article on the trade deficit and a possible mechanism by which to bring imports and exports into equilibrium
So if this policy would work as expected, exports would increase and imports would decrease and meet somewhere in the middle. To an American consumer, this is equivalent to a cut in supply from both domestic and foreign sources; prices would definitely go up across the board unless consumer demand is reduced. I guess my concern would be whether the effect would be primarily progressive (proportionally higher price-hikes for luxury goods) or regressive (proportionally higher price-hikes for basic necessities)... I have a feeling that it would be mostly progressive, but who knows.
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Bill from the internet. i should probably fix that.
So if this policy would work as expected, exports would increase and imports would decrease and meet somewhere in the middle. To an American consumer, this is equivalent to a cut in supply from both domestic and foreign sources; prices would definitely go up across the board unless consumer demand is reduced. I guess my concern would be whether the effect would be primarily progressive (proportionally higher price-hikes for luxury goods) or regressive (proportionally higher price-hikes for basic necessities)... I have a feeling that it would be mostly progressive, but who knows.
...
Bill from the internet. i should probably fix that.