Almost nothing is all good or all bad, yet we often feel a need to cast things as one or the other. This is lazy thinking.

Tariffs might have potential benefits or serve certain purposes. This tax on goods can raise money for government that can go toward other programs or to paying down debt. Some countries provide special benefits to industries that make those products more competitive than homemade goods. Other countries might have different labor regulations or enforcement mechanisms that artificially lower their costs. Tariffs might help level the playing field.

Tariffs can promote the growth of certain industries that our leaders view as necessary or strategic. The threat of tariffs might bring countries to the negotiating table, resulting in better trade outcomes. Tariffs might result in an increase in our manufacturing at home as we try to control our supply-chain risks, thereby creating employment opportunities.

There is a saying that knowledge is an obstacle to knowledge. When we are certain of something, we are no longer curious. When you find yourself viewing things as all good or all bad, then you are no longer able to comprehensively analyze the costs/benefits of an issue. This affects not just our finances but also our relationships. This type of thinking is us vs. them: I know what’s best for me, and I also know what’s best for you, and the greatest of all closed-minded ironies, “I can’t talk to them about this because they are closed-minded.”

An additional benefit of studying opposing views is it might make you more forgiving of your own mistakes, allowing you to stop doing something that is no longer serving you. When we are completely convicted about something, we tend to continue to find things that support those convictions and disregard others that don’t match our worldview. The best financial outcomes come from recognizing errors and making a change rather than stubbornly plowing ahead.

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