Message from @SilverLining
Discord ID: 503322393574375435
It is not. What Autarky does is something like social welfare. Everyone survives, so overall quality is lower. Free market destroys weak competitors so quality is higher. But this higher quality also entails destruction of relatively poor business owners, who cannot compete with MNCs.
So, you destroy businesses today and benefit tomorrow
Equal tariffs would also produce a large amount of immediate damage as well
Imports/exports are required to sustain each state and its current quality of life
They won't. If they are imposed on nations which export more to the country putting tariffs. That is why Trump's tariffs are a success.
A success?
It's going to harm farmers in the long run
It already is, actually
Exports are going to decrease
You were talking short term. You said immediate damage
Both short and long term
In short term they are benefiting USA
Even then, you're more or less saying that short term benefits outweigh producing something sustainable in the long term
No. I am saying that they are theoretically equal.
Not particularly...
International trade, particularly without tariffs, shifts out the ultimate amount of potential productivity possible
It'd force some short term shifts in specialization (potentially, domestic industries don't need to pay transportation fees as high and would have shorter delays in shipment, so there are a lot of domestic boons), but in the long run, would result in greater overall productivity
That overall loss is equalised by earlier boons and increase in government exchequer. You can literally prove it via mathematical equations
Over time, however, the amount of damage caused would continually increase
Leading to the overall loss being by far greater
And a large portion of the immediate benefit perceived was due to rapid, last minute purchases of products before the tariffs were put in place
Hell, there's got to be a massive bailout now due to lost sales by farmers
$12,000,000,000 US dollars going straight to that
Do you know what is cost of capital?
I do
So, that continually increasing damage, if discounted would be actually decreasing.
Because it would be divided by exponential series
And exponential series is one of the fastest growing series that naturally exists
exponential series?
1/r^n
I know what exponentiality is
So? You know that for every passing year, we increase exponent by 1
ehm, what?
Discount rate effect increases exponentially.
We're still looking at a lessened supply with greater tariffs
That would never overtake growth in exponential series.
howso?
A $100 gain today will be more than $10,000 gain after 100 years. That is a factor of 100. So, if USA's share even becomes a quarter than it currently is, it would still be more beneficial to have a short term gain.
We're also considering the wellbeing of other nations too
Specialization in what one holds a comparative advantage in still, regardless, culminates in greater productivity long run and benefits both nations rather than just a single one
I am not sure what more I can show you. No, it does not happen that way. The more liberal econmonies did benefit by globalisation but they also were the biggest sufferers of depression because of lack of autarky. Data shows that developing nations were lesser affected than developed nations.
That happened because these nations were entirely dependent on other nations for certain products.