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Trudeau announces 25 per cent retaliatory tariffs on U.S. goods starting Tuesday
(toronto.citynews.ca)
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this post was submitted on 02 Feb 2025
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I imagine you have a fridge, a stove, and know how to cook. Sometimes you cook at home, sometimes you eat out.
Let’s say that you want to stop eating out, or maybe save money, or maybe you do it just because it’s fun: each time you order out, you put 25% of the bill in a jar at home.
Eating out becomes more expensive for you (now that you need to pay the jar), but the restaurant makes the same money. In the long term, the restaurant might loose out on money if you decide that paying the jar is too expensive and you just decide to cook at home. But hey! You have a jar full of money at home. Maybe you’ll do something with it one day.
Replace the jar with tariffs and cooking out with whatever we buy from around the world and you have what’s happening now.
But a more accurate example for America would replce the kitchen at home with just microwave
America destroyed their manufacturing capacity outsourcing it all and failed to reinvest any of the profit from that move
Factories don't pop up like in the sims games
Same thing for all the skills. You don't basically deskill everyone over the decades and expect that to be available again overnight.