Question

In one of the newspaper articles provide to you earlier, a WSJ opinion columnist says, “new steel tariffs would cost about eight American jobs for every one steel job protected.” In such a scenario possible? If you think it is, explain what makes it possible. If you disagree what makes you disagree?

Answer 1

I think such a scenario is possible.

Cheap steal import helps many American firms reduce cost and become more competitive. These firms can increase output and hire more workers. For example, the low cost of steel import helps many American automobile firms to be more competitive, sell more automobile, produce more and hire more workers. Similarly, cheap imported steel creates a boom in the construction industry and creates a large number of jobs. Therefore, steel tariffs result in loss of all these jobs.