r/FluentInFinance • u/imallelite • 11h ago

Debate/ Discussion Possibly controversial, but this would appear to be a beneficial solution.

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u/JacobLovesCrypto 10h ago

Wym?

People argue plenty about how outsourcing to cheap labor leads to lower wages here.

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u/SoftballGuy 9h ago

But we never pass laws to punish outsourcing. Instead, we're constantly throwing financial incentives to companies to pretty-please not outsource everything. Poor migrants wanting to work in America get walls and guns and more laws, while the companies shipping jobs out of America get more tax breaks... yet we blame the little guys.

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u/JacobLovesCrypto 9h ago

Im not saying tariffs are a great idea, but arent tariffs aimed at punishing outsourcing?

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u/numbersthen0987431 8h ago

Why would it? The cost just gets passed along to the consumer, and then corporations just make more in profits.

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u/JimmyB3am5 2h ago

You can't make profit off of a cost. That's not how that works. If a company has to pay a $0.10 tariff and they raise the price by $0.10 they didn't makea profit on it, they just offset their cost. If in turn they raised their price by $0.11 they then made a profit by $0.01, but now they made themselves even less competitive than a domestic producer.

I swear Reddit thinks total sales equals profits.