- Reaction score
- 0
- Points
- 160
geo said:correct me if I'm wrong but, wasn't the intent of the tarifs to raise the price of lumber going into the US so that US consumers would have to pay more for the lumber that was already going into the US. The coin collected was supposed to go to lumber company owners weren't prepared to sell to US consumers at the same price the Cdn producers were......
So it's the US Consumer who gets it in the neck here - right?
Pretty much. The American consumer has to pay more for lumber, and they also have to pay more money for new houses. In the end, the end consumer gets shafted. And besides, American softwood ain't as great as Canadian softwood; the grains in Canadian softwood tend to be longer and stronger, resulting in superior wood. And in a free market, the superior good is prefered over an inferior product at the same price level, which is what the lumber market is: a free market with the market setting the prices. And since Canadian softwood lumber is usually sold at the same price as American lumber, consumers will prefer the superior good over an inferior product, in this case, Canadian softwood lumber. Basic Economics 101 for ya.