Tariffs Notes

Assignment 2 due Sunday

What is it?: A tariff is a tax imposed by gov on goods and services imported from other countries

Purpose: To increase price of imported goods, making them less competitive to local goods

Gov spending in US is exponentially growing

1800-1860 revenue dominated by tariffs, minimal social spending

Departments since 1860 to now

Department of Justice

Department of commerce

Department of health and human services

Department of education

Department of transportation

Department of homeland security

On graph:

Q1 = domestic quantity supplied

Q2 = total consumption (domestic)