Disregarding the complications that might be introduced by short-term changes in currency exchange rates, dollars that are expended abroad are typically spent sooner or later on American products (
). Consequently, the y dollars denied to the foreign producers will no longer be spent on American exports, as they normally would have been in the absence of the tariff. In other words, American export industries are sooner or later denied y dollars of business. Even if a gold standard were in effect and market value were measured in gold ounces rather than dollars, the consequences would be similar. Any net outflow of gold to other countries would result in lower domestic prices, thereby encouraging purchases of American products by foreign buyers until equilibrium was restored. Thus there could be no long-term balance-of-trade problem, and any savings of funds resulting from restrictions on imports would be offset by losses in export business.
According to our analysis so far, the tariff has brought x dollars of additional revenue to protected American industries, while depriving American export industries of a still greater y dollars of revenue. This transfer of funds, moreover, has caused more resources to be allocated to a less efficient industry (as determined by the market), while fewer resources are allocated to a number of more efficient industries (). American consumers, meanwhile, are obliged to spend an extra x dollars on the more expensive domestic product, to the detriment of their own standard of living. Since every worker is also a consumer, this effect of the tariff amounts to a reduction in workers' earnings. 
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