OPINION
Tariffs are like that crazy uncle that no one likes to talk about until they show up. It is one of those truly bipartisan issues with haters and supporters on both sides of the aisle.
Last month, an overwhelming majority of Americans sent a message to Washington, D.C., and gave Donald Trump a mandate. His policies to fix our economy, secure our border, and restore American dominance abroad resonated with millions of Americans, giving Republicans not just an electoral landslide but a popular vote victory for the first time since 2004.
In recent years, the debate over tariffs has intensified, with many on the right arguing that they are a necessary tool for protecting domestic industries.
Proponents of tariffs, including President-elect Trump, assert that they can foster a more robust manufacturing sector, countering the negative impacts of globalization and the erosion of American jobs.
One of the most significant effects of global competition has been the widespread use of cheaper materials in manufacturing.
Companies, in the quest to reduce costs and remain competitive, often turn to lower-quality inputs. Unfortunately, while this strategy may lead to immediate cost savings, it results in inferior products that do not meet consumer expectations.
Consumers are inherently aware of this trade-off; they know that lower prices often equate to lower quality. While some consumers may opt for cheaper goods initially, many will ultimately seek better quality, even if it means paying a little more.
This is where tariffs can play a crucial role.
By imposing tariffs on imported goods, our government can encourage consumers to choose domestically produced items, which, despite potentially higher prices, may offer better quality and durability.
The positive effects of tariffs can ripple through the economy.
With a more significant focus on quality and domestic production, American manufacturers may invest in better materials and processes, ultimately leading to a stronger manufacturing base. This can create a sustainable cycle where quality reigns over mere cost-cutting, fostering a more resilient economy.
The evolution of labor costs in the manufacturing sector is another critical factor in the argument for tariffs.
Over the past few decades, American manufacturers have pursued several strategies to remain competitive in a global marketplace. Unfortunately, these strategies have often led to job losses and stagnant wages.
The first approach many companies adopted was to increase productivity, often at the expense of their workforce.
While increased productivity is a term heralded in academic circles, in practice it often means laying off workers and requiring those who remain to take on additional responsibilities. This practice has led to a situation in which fewer workers are expected to produce the same amount of goods, creating immense pressure on the remaining employees.
Another method to cut labor costs has been the freezing of wages. For 30 to 40 years, many manufacturing jobs have seen little to no wage increases, leading to a significant decline in real wages.
This stagnation has left workers with diminished purchasing power, resulting in a cycle of economic stress for American families.
As the first two strategies began to falter, many manufacturers turned to automation as a solution.
While automation can undoubtedly lower production costs, it has also led to further job losses. The replacement of human workers with machines has resulted in a significant reduction in the number of available manufacturing jobs, particularly in areas like Michigan, where manufacturing has historically been a cornerstone of the economy.
The argument that tariffs will work lies in their potential to create a more level playing field.
Critics often claim that tariffs are ineffective or that they provoke retaliation from other countries. However, this perspective fails to consider that tariffs can be effective in the short term, particularly when they are not met with a reciprocal response.
By imposing tariffs, the U.S. government can encourage consumers and businesses to support domestic production, ultimately strengthening the American manufacturing sector.
In a world where globalization has led to the outsourcing of jobs and the decline of local industries, it is time to respond. Tariffs can serve as a protective measure that enables American manufacturers to compete fairly, invest in quality materials, and create jobs.
By prioritizing domestic production, we can not only revitalize the manufacturing sector but also ensure that workers receive fair compensation for their labor.
Michigan was once the world leader in manufacturing and the car-producing capital of the world. Today, due to outsourcing, Michigan union workers are losing their jobs, and it is becoming harder for the state to compete in a globalized economy.
President-elect Trump's tariff policies, while controversial to many on the right, should be embraced and given the opportunity to succeed. By addressing the root causes of job loss and wage stagnation, tariffs can work to restore the prestige of manufacturing work in the United States.
Michael Markey, a Michigan Republican and former congressional candidate, is a financial adviser.
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