You have an input good (wood let's say) which used to cost $100
You tax importing it at 25%
Producer marks up the wood to $125 to make up for the tax
There are some corrective forces which can mitigate this a bit but no matter what prices are going up, taxes and restricted trade always cause inefficiency
Zach⚡️
npub1hy…3ntt0
2025-02-03 15:46:46
in reply to nevent1q…js4r
Author Public Key
npub1hymqekqgkf8vhlgr2a0n6cmmre3v48l2g9dvv7mvtvg7790j35rqh3ntt0Published at
2025-02-03 15:46:46Event JSON
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