Is it viable to have mild protectionism to account for higher regulations?
Ok, I am not an economist and I am fairly bad with economics. That said, I am interested to learn more and I am sure there is a logical reason against this idea, or plenty of faults within it.
US standards are higher than standards in other countries we outsource labor to. Our wage standards, environmental standards, workplace standards, etc. This contributes to a higher manufacturing cost at home. Rather than pay this, it's cheaper to outsource to countries with more relaxed standards.
I understand that this helps these countries economies, and overall allows for cheaper goods, but to me it seems like it's just undercutting US based manufacturers, and every regulation incentivizes companies to move away from the US.
To counter this, I think it would be logical to have a tax on goods that are produced in conditions that don’t meet US standards. Just enough to get prices to roughly equate to what they would if they followed the regulations US manufacturers would have to.
I imagine it would be incredibly difficult to quantify this tax since different countries work very differently, but some form of this would probably help maintain global trade without many of the costs towards US manufacturing, help fight climate change, and reduce modern day slavery.
Posted Jul 9, 2025, 4:20 AM UTC