"My colleague Walter Williams explains the easy-to-miss distinction between prices and costs. A slice:
In his 2012 State of the Union address, President Barack Obama boasted that “over 1,000 Americans are working today because we stopped a surge in Chinese tires.” According to a study done by the Peterson Institute for International Economics (http://tinyurl.com/jdtbktu), those trade restrictions forced Americans to pay $1.1 billion in higher prices for tires. So though 1,200 jobs were saved in the U.S. tire industry, the cost per job saved was at least $900,000 in that year. According to the Bureau of Labor Statistics, the average annual salary of tire builders in 2011 was $40,070."
Thursday, March 2, 2017
The High Cost Of Saving Jobs In The Tire Industry
From Don Boudreaux of Cafe Hayek.