“What happens if Trump lays tariffs that erase the benefit of employing slavery in other lands? Let’s say for example that Trump was to figure out the difference in labor cost in a Blazer between one built here and one built in Mexico. It’s not hard — $4/hour there, $20/hour here times however many hours of labor are in the truck and all parts not made in America, plus the avoided environmental expense. That’s the tariff.
“Now take Apple’s iPhone. How much would the screws and assembly cost here .vs. over there for all parts not made in America, plus the avoided expense in the non-US components made where environmental damage is not prevented? That’s the tariff.
“Go down the list one at a time of everything we import and look at what costs are evaded by firms soliciting labor through other lands where the legal environment does not protect the right of free movement, the environment and similar. That, by the way, is essentially everything this nation imports. Set the tariff as equal to that evaded cost.
“Now lay the same via taxes on any firm that employs H1b — or the so-called “Seasonal worker” visas (H2a and H2b) . Take the full imputed cost including salary and benefits of said person and, if lower than a US individual of the same skill set employed in the same job that’s the tax due.
“What happens if you do this?
“Those manufacturers no longer have an economic reason to put labor there. They will bring it here instead, by and large. Further, watch how fast all those H2 jobs who people claim “can’t be filled by Americans” suddenly can find all the employees they need!
“The result is that all those people on the left side of the curve will have jobs that are sufficient to support themselves and their families.
“But what if the manufacturers don’t bring the labor back? Then Treasury has hundreds of billions of dollars in surplus funds to cover the welfare costs of everyone on the left side of the curve.
“Either way the outcome is the same — we have a stable, thriving society.
“No, your iPhone will not cost an extra $200 nor will your GM truck. If either company could charge another $200 or $6,000 for their products and still sell them here in the United States they would do it right now. What prevents them from doing it is that they’ve determined that demand is insufficient to support that price. That does not change if there is a tariff imposed.
“So what will happen is that Apple’s margin on said iPhone will go from 40% to 25% and their stock price will reflect that. Likewise GM’s margin on that truck (remember, they make more on trucks than any other vehicle) will come in and so will their stock price.
“Neither company will admit this because if they do there is a very real risk that those 150 million on the left side of the curve will decide to eat the executives of said firms and the politicians that screwed them out of a job on purpose so the top 2% of the nation can make money through a rapidly advancing stock price! See above for the survival odds of that ~6 million should the other 150 million take that decision.
That is why they lie repeatedly on this subject and in fact will never admit the truth.”