As global trade dynamics shift, the dinner table conversation around tariffs has resurfaced.
What if Australia decided to implement tariffs on imported goods?
Manufacturing jobs have been hollowed out by successive governments, with many regional areas suffering the brunt of the Coalition's policies for advocating free trade. Over the past few decades, many aspects of our society have suffered some devolution with a large number of high paying jobs being shifted to low income countries.
Australia does not manufacture anything meaningful anymore. The jobs created would need to involve more than just assembling of products. Tesla is widely touted as being a car assembler, not a car manufacturer.
One of the side effects of tariffs could include a decrease in income taxes.
What types of jobs do you believe could be re-shored back into Australia? Would you consider working in those industries if they adhered to developed nation safety standards? This is crucial, as many industries are often reported in the media as being undesirable due to lax standards in lower-income countries. Surely, Australia could manufacture lithium batteries better than most countries they are currently being produced in.
Overall safety is improved as a net result. A net benefit to the global economy is created by utilising tariffs. Adam Smith's theories of a benefit to society only seem relevant if you suspend disbelief and do not price in the effect to workers, environment and other external costs. Globalisation has not worked. It has created a culture where people are Ice Cold to others, demeaning them in bad employment situations where they are exploited for a few dollars.
By bringing back jobs to Australia, it goes a long way to remediating this issue. Interest groups focus on sustainable this and sustainable that, but how about starting with locally produced goods?
Can Australia keep affording to run trade deficits with so many countries? Where are the good jobs? Sure, there are service jobs here and there but they are low paying jobs that cannot arguably sustain a family starting from nothing, in that you cannot actually afford a house with a backyard.
I think it is important to note that Australian manufacturing is much more down the road then the US.