The Importance of Comparative Advantage

The price of steel went up. Companies that used steel had to pay more, and so they had to raise their prices. This in turn led to higher prices for consumers for all sorts of things. And that means a lower quantity demanded for those goods, and so fewer sales. Fewer sales mean fewer jobs. So steel tariffs help protect steel worker jobs, but they cost other american jobs in industries that steel. Jobs in steel using industries outnumber those in steel production, pay about 80 to one. There may even have been a nit job loss. That sounds kind of bleak, you know, it all comes down to the fact that we can produce more whenever the people with the lowest