"Microeconomics" Brief edition" Mc Connell, Brue, Flynn [Referrens Ch 12 on the book]Think like an economist. Discuss this subject: Assume that tariffs and quotas are enacted only when national...
Think like an economist. Discuss this subject: Assume that tariffs and quotas are enacted only when national defense is affected by the imported good. Develop creative arguments to convince Congress that sugar, scissors, textiles, alcoholic beverages, and other products now covered by tariffs or quotas might be essential to national defense. In other words, assume the role of a lobbyists for these industries. - defend your claims.
It is easy fora lobbyist to argue that scissors and textiles are essential to national defense. Scissors are a critical component of uniform and clothing manufacture. National steel resources would be focused on defense goods manufacturing and cheap imported scissors would not divert costly resources. Textiles are a similar situation. Cheap textiles for civilian clothing would leave higher quality nationally made textiles available for clothing and other military textile needs.
Looking at sugar and alcohol, you could argue that morale is a huge part of war. If the people of the country are discouraged, they will turn against the war. Therefore, it is important for them to have access to sugar and to alcohol. This will allow them to have their desserts and their glasses of wine and such and will keep them happy enough to support the war effort.
A government tax specifically on luxury goods would cause consumption of them to decrease as people disgard their needs, but it would also cause a black-market scenerio where the same goods are offered at reduced prices. Eventually, the taxed companies would collapse as people stop purchasing their products, making the act of taxation a destructive one.
We could melt down the scissors and make weapons out of them. Also, I think you could argue that textiles are important. We need them to make uniforms for our military personnel. On the other hand, I’d be more inclined to argue that it is in our best interest to get any of these things as cheaply as possible, to better spend our money on defense.
I think #2 makes an excellent point about morale and its importance for any nation. Alcohol and sugar would allow us to continue to celebrate and give us a much-needed opportunity to enjoy life's ups and downs. They are essential to developing a healthy workforce and population in this sense.