The reason state need tariffs to support domestic business is that local businessmans decided that they will get more profit moving manufacturing out of country to the cheaper regions. With some ethics and care about local people from the businessman, there would have no such situation in the beginning. And now the same businessmans who destroyed local manufacturing get subsidies from the state. Guess how that will go.
If you make it too expensive to outsource manufacturing, then those companies need to compete with other local companies. In even a moderately efficient market, if you are price-gouging then there will be other competition that comes in at a lower price. Similarly, if you need to compete with other local companies for labor then you need to pay better.
This assumes efficient markets, though. However, every system will always tend towards consolidation and monopoly, it is ingrained in human nature. To counter this you would need robust breakup of monopolies. This also will eventually be gamed or corrupted.
Then we're back to natural cycles of consolidation, revolt, decentralization, repeat.
If you make it too expensive to outsource manufacturing, then those companies need to compete with other local companies.
Of course. But that's not what happening. F.e. iPhones completely made in China are accounted as "made in USA" and not fall under tarifs.
To counter this you would need robust breakup of monopolies.
Today it is nearly impossible to do anything with monopolies, unfortunately. Electronics and software made vendor lock and monopolisation even simplier than any time before.
Then we're back to natural cycles of consolidation, revolt, decentralization, repeat.
That's not right if civilisation can't develop without that cycles. Unfortunately nobody cares.
If you make it too expensive to outsource manufacturing, then those companies need to compete with other local companies. In even a moderately efficient market, if you are price-gouging then there will be other competition that comes in at a lower price. Similarly, if you need to compete with other local companies for labor then you need to pay better.
This assumes efficient markets, though. However, every system will always tend towards consolidation and monopoly, it is ingrained in human nature. To counter this you would need robust breakup of monopolies. This also will eventually be gamed or corrupted.
Then we're back to natural cycles of consolidation, revolt, decentralization, repeat.
Of course. But that's not what happening. F.e. iPhones completely made in China are accounted as "made in USA" and not fall under tarifs.
Today it is nearly impossible to do anything with monopolies, unfortunately. Electronics and software made vendor lock and monopolisation even simplier than any time before.
That's not right if civilisation can't develop without that cycles. Unfortunately nobody cares.