Abstracts Economics

The Effect of Tariffs on the Unemployment Rate: A Political Propaganda Issue in the United States

by Victor Jose Roa

The unemployment rate in the United States is a number that gets to be used as a pollical tool to influence policies. Furthermore, this number is fueled with words such as tariffs and 'saving jobs for Americans', leading to debates over what unemployment really means to Americans. For example, Anderson and Neary (2013) ask, "What kind of tariff reform is likely to raise welfare in situations where tariff revenue is important?" It is imperative to note that outside the fields of economics, some people from the general public believe that tariffs will save jobs and help the economy. This paper found that there is a political history behind unemployment as well as more vindicated truth behind it. It found that different presidencies tackled tariffs and unemployment according to the political environment during their terms. Also, tariffs affect unemployment rates different depending on racial groups. At the end, it is a combination of both, in which political plays overshadow the policies behind tariffs and unemployment.