Here' my answer to my pop quiz; it's in the form of a letter-to-the-editor that I sent yesterday to the Washington Post:
Monday that President Barack Obama impose additional duties for three
years on imports of low-cost Chinese tires the panel says are harming
U.S. industry" ("U.S. trade panel favors stiffer duties on Chinese
tires," June 29).
Such a move by Mr. Obama would not save U.S.
jobs on net, because fewer dollars spent on imports means fewer dollars
that foreigners have to spend on U.S. exports or to invest in the U.S.
More
importantly, in this case higher duties would actually kill people.
Higher duties mean higher tire prices, and higher tire prices will
prompt many motorists to ride longer than otherwise on tires that are
threadbare. Because riding on older tires is more dangerous than
riding on new tires, Mr. Obama will have blood on his hands if he
accepts the I.T.C.'s recommendation to stiffen duties on low-cost tires.
Sincerely,
Donald J. Boudreaux
Thanks to all of you who answered the quiz in the comments section of my previous post (or in e-mails to me), and congrats to the many of you who earned A+.
