Can manufacturing help?

Question:

A lot of manufacturing jobs of all kinds, from cloths to cars, left the US because of high costs of goods and labor. The American public has enjoyed lower costs as a result of lower costs of imported goods. If the purpose of tariffs is to bring manufacturing back to the US, how does that help the consumer? Am I wrong in assuming that because of wages and costs associated with manufacturing in the US the prices of those products will be significantly higher than when production was out of the US?

Answer:

You raise a wonderful point. In a globalized world, countries produce goods in which they have some sort of comparative advantage. Countries like China have a comparative advantage in producing manufactured goods which is why it makes sense (in terms of efficiency) for the US to buy manufactured goods from them. But it's not all about efficiency. If manufacturing jobs came back to the US, many Americans would find gainful employment, which means they will earn good incomes, spend and grow the economy. The cost will be higher prices of US-made manufactured goods. No one knows if the cost will outweigh the benefits. The answer likely depends on which sectors or industries we are talking about.