history question please help!!?

C

Cleo H

New member
please describe and summerize what this means!

a bill to levy a tax on imported manufactured iron works to protect local iron works manufacturers. for every $100 of manufactured iron works imported into any state from a foreign country, a $10 tax will be collected.

why is this a good thing?
 
In short because it protects domestic (ie American) iron producers by making imports more expensive. Ideally this would have the effect of making imported iron more expensive than iron produced in the US. This ensures more money spent on iron stays in the country and less is 'lost' to foreign businesses.

The goal is to make domestic iron more attractive to 'the consumer' (those who will eventually buy the iron) by making it cheaper in comparison to foreign/imported iron. This policy is called 'protectionism' and is actually the opposite of free-market liberalism. However the USA still chooses to practice it in several areas.

The State could theoretically ban imports to achieve this end though this usually violates trade agreements so a tax or 'tariff' is usually a useful middle-ground.
 
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