The bad thing for the US is that its a lot of revenue to lose. This type of thing has knockon effects. America has a very large tourist hospitality sector.
Yes, it was promised but the people thinking it a good thing, who voted for it and are implementing it do not understand how the economy works.
On one hand, it is a lot of revenue lost. On the other, it’s also a lot of resources freed up for Americans that would otherwise have been used by foreign tourists. As long as the supply remains the same and the demand drops, prices should get reduced as well. That’s what people understand.
What they don’t understand is that companies expect this to be temporary, and they’d rather have losses they can write off, rather than smaller profits that their investors will be upset about.
The bad thing for the US is that its a lot of revenue to lose. This type of thing has knockon effects. America has a very large tourist hospitality sector.
Yes, it was promised but the people thinking it a good thing, who voted for it and are implementing it do not understand how the economy works.
On one hand, it is a lot of revenue lost. On the other, it’s also a lot of resources freed up for Americans that would otherwise have been used by foreign tourists. As long as the supply remains the same and the demand drops, prices should get reduced as well. That’s what people understand.
What they don’t understand is that companies expect this to be temporary, and they’d rather have losses they can write off, rather than smaller profits that their investors will be upset about.