AT&T Uneasy with Clearwire Portion of Sprint-Softbank Deal
Top message: Good by stevelvl
Replying to: Re: Good by newfoneguy
(2) I do believe that government intervention with cellular will happen in next decade, unless the industry self-regulates and VZW & AT&T voluntarily sell off large portions of their operations to new competitors. Just like Ma Bell.
(3) If you think import tariffs are the way to help the average American, you're not familiar with the dynamics of international trade:
If American steel costs $3 and Chinese steel costs $1, American companies will buy the Chinese steel.
If a $3 tax is added to Chinese steel, then its price becomes $4 and American companies will buy the domestic $3 steel instead of the $4 Chinese steel.
But, what about European customers?
American steel still costs then $3, but the Chinese steel is still only $1 U.S. taxes aren't assessed on European transactions, so European companies don't buy the American goods...
Does that make sense?
This is why federal subsidies are issued to specific industries in the United States. Taxes can reduce imports, but the will NEVER increase exports. A subsidy can drop the global price of American steel, allowing American firms to compete overseas, where U.S. tax policy has no impact.
Tariffs only work bilaterally, when two countries are exchanging product directly. Throw in a third country with its own goals and tax policy, and everything blows up.
As such, tariffs aren't very effective in the 21st century.
- Re: Globalism by newfoneguy