Business
Tariffs are a hot topic in America, leading UWL to host a discussion about their effect on the economy
Are tariffs good for the economy, or a bad thing? An audience at UW-La Crosse heard mixed opinions on the need for tariffs, during a panel discussion on Wednesday at Centennial Hall.
Associate professor Sheida Teimouri is chair of the economics department at UWL, and was an organizer of the event. She says the program presented just before spring break was organized quickly, while Washington is busy debating tariffs on other countries.
“I think that the consensus among economists is that tariffs are bad,” said Teimouri, “and I think our students, a lot of them were hearing that, and they were kinda confused, that if they are so bad, if everybody thinks they’re so bad, then why are they doing it?”
Among the opinions expressed by the five people on the university panel…tariffs don’t do magic, it’s not possible to replace tariffs entirely, and it’s generally poor countries that use tariffs a lot.
Economics researcher Nick McFaden argues that increasing tariffs would not be a good substitute for the current tax system. “In one year, the income tax generates about as much as the tariffs are expected to generate in 10 years. You cannot squeeze $2.1 trillion in revenue out of $3.5 trillion out of imports. It’s just not possible,” said McFaden.
Panelists also noted that U.S. stock prices fell about 10 per cent in two days, after recent tariffs were announced, and argued that new tariffs were in effect the biggest tax hike in peacetime since the 1980’s in the U.S.
walden
April 16, 2025 at 11:20 pm
Sounds like an indoctrination session.
walden
April 16, 2025 at 11:57 pm
Is this a joke? No legitimate economist would point to a two day drop in the stock market as a measure of the efficacy of tariffs.
Nick Berry
April 17, 2025 at 9:22 am
Manufacturing jobs are not coming back and so huge trade deficits have been and are the norm. Tariffs have not worked in the past and especially will not work now. We want high paying jobs in the US and low cost goods. Thus, we cannot compete with other countries. In addition, we want a clean environment so let other countries despoil their land and pollute. Case in point, China is building coal plants as fast as possible along with nuclear plants.
They need to have their factories running all the time and natural power( solar, wind etc) does not cut it. I doubt any of this was pointed out to the students as well as the fact that India and China buy large amounts of Russian oil despite the embargo.
I am not surprised about the language that tariffs are a tax increase. Anything to make Trump look worse than he already makes himself look.
Unfortunately, we need balanced reporting more than ever and that ship sailed a long time ago. The major universities have sold out to the left a long time ago and that is where a lot of the so called news journalists have come from for decades now. This could have very well been an indoctrination session.
Mike Hochertz
April 17, 2025 at 9:54 am
What I don’t understand is how people think. Look at the manufacturing loss in our communities.
Lacrosse boots, river steel, TRW, Northern Engraving, etc. Each one of these businesses employed people. These people would contribute taxes, they would purchase items, go to resturants, and contribute to local economies. In turn small start ups could machine parts, or make packaging, or repair pallets. Furthermore the factory would contribute tax dollars to help with school budgets
With these gone where do the government subsidized programs get money? Basic economics tells us that printing money leads to inflation. But academia wants everyone to believe differently.
The trajectory this country has been on will leave to bankruptcy and everyone will wonder how did it happen.
Bob N.
April 17, 2025 at 3:44 pm
You only mentioned a few of the losses. Auto-Lite, La Crosse Cooler, Allis Chalmers. But, La Crosse in it’s manufacturing heyday had lots of labor unrest and a stubbornly higher-than-state-average unemployment rate. It seemed like one of the major plants was always on strike. News of a reputation for labor unrest hurts a town. Look at Austin, Mn. Albert lea, next door, has passed it in growth. If La Crosse doesn’t change the liberal, eroding path it is on, Onalaska and Holmen, along with West Salem will see all the growth while La Crosse shrinks. Minneapolis is on this path now.
There’s a good chance that Trump’s initiative to regain American jobs will have some success. It may not be the smokestacks of yesterday, but newer tech businesses, instead. Power companies all over, including the one serving Racine are building additional capacity for AI builders. That company, incidentally, dipped only 1 dollar in the market and is already higher than before the market eruption.
walden
April 17, 2025 at 8:22 pm
The list of La crosse job losses is long (add Trane) and much of it occured before the UWL kiddies were born or the professors moved to La Crosse. It’s all just numbers to them.
Lacking real world experience and the nuance that accompanies experience, it probably never occured to the professors that this is all a negotiation using tariffs as leverage and might result in an improved US economy even if Trump doesn’t get everything he wants. Doing nothing and trying nothing results in nothing (See Biden, Obama, Bush).
Apparently, no-one was available to provide nuance or an alternative view point. Or just as likely WIZM chose not present that aspect.