Domestic Producers Lose Increasing Share of Home Market to Foreign Competition (Tariff,anyone?)

U.S. Business & Industry Council ^ | 12/26/06 | Alan Tonelson ,Peter Kim

[1rudeboy]

Somewhere, in the ether, the ghost of Willie Green looks upon this thread and smiles (if the ghost of Willie Green could smile).

[em2vn]

You might want to study up on Smoot-Haley a bit. If I remember my history correctly, the damage of the Fed's tight money policy had already done the damage before the legislation was signed.

[Ben Ficklin]

"Somewhere, in the ether"?

How about the FR retread website.

[Hawthorn]

> What Would Duncan Hunter Do? <

He'd frown, growl, bash the illegal aliens, and vote to increase the size of the pork barrel.

[Hawthorn]

> The United States is a military superpower, but is steadily becoming an industrial also-ran <


And in the meantime, total manufacturing jobs and output are up, unemployment is at near-records lows, and the economy is booming.

[Toddsterpatriot]

The United States is a military superpower, but is steadily becoming an industrial also-ran

I love these guys.

$1.79 trillion in manufacturing last year. Over $900 billion in exports last year. We can't do anything here anymore. LOL!

[jpsb]

Yup the Big Lie is that Smoot-Haley caused the Great Depression, complete nonsense.

[Howard Jarvis Admirer]

You are right. The U.S. has had tariffs since the first Congress but the free traders love to point to one tariff act (among dozens) during the depression as causing all the worlds' problems. Here is a list of all the tariff acts back to the first Congress for comparison:

Federal Government
Tariff Table
Major Tariff and Trade Legislation
Year Name Description
1789 Tariff of 1789 Primarily for revenue; some protection for "infant industries;" (Washington administration).

1816 Tariff of 1816 First protective tariff; Clay and Calhoun supported as part of American System; Southern cotton growers opposed; (Madison administration).

1824 Tariff of 1824 Further heightening of rates; growing opposition from South; (Monroe administration).

1828 "Tariff of Abominations" Higher protective measures for New England mills; Southerners outraged, including Calhoun; (J.Q. Adams administration).

1832 Tariff of 1832 Moderate reform returned rates to 1824 levels; unmoved South Carolina sparked Nullification Crisis; (Jackson administration).

1833 Tariff of 1833 Clay compromise; gradual reduction of rates over time to 1816 levels; New England states opposed; (Jackson administration).

1842 Tariff of 1842 Upward revision forced by depression following Panic of 1837; (Tyler administration).

1846 Walker Tariff Democrats controlled Congress; West supported tariff reduction in hope of selling grain abroad; move toward tariff for revenue only; (Polk administration).

1857 Tariff of 1857 Downward tariff revision to almost free trade status; North opposed; (Buchanan administration).

1861-
1865 Wartime tariff acts Steadily increased protectionism to help fund Union war costs; South not represented in Congress during Civil War; (Buchanan and Lincoln administrations).

1872 Tariff of 1872 Post-war reform tariff, reduced rates on some manufactured goods; (Grant administration).

1875 Tariff of 1875 Continued downward revision; average rates reduced by 10 percent; (Grant administration).

1883 "Mongrel" Tariff Republicans abandoned reform; compromise satisfied no one; (Arthur administration).

1890 McKinley Tariff Highest protective tariff to date: average 48 percent; (B. Harrison administration).

1894 Wilson-Gorman Tariff Reform measure crippled by Senate amendments; (Cleveland 2nd administration).

1897 Dingley Tariff Blatantly protective measure; some rates at 57 percent; (McKinley administration).

1909 Payne-Aldrich Tariff Attempt to lower average level of duties; little meaningful reform; Progressives angered; (Taft administration).

1913 Underwood-Simmons Tariff Democrats took control of Congress; general duty reduction soon negated by outbreak of World War I; federal income tax provision; (Wilson administration).

1921 Emergency Tariff Republicans returned to power and responded to mini-depression; raised agricultural rates to protect farmers; only a stopgap measure until new law written; (Harding administration).

1922 Fordney-McCumber Tariff Increased rates sharply; president empowered to adjust rates; Tariff Commission created to advise president; (Harding administration).

1930 Hawley-Smoot Tariff Raised U.S. duties to an all-time high; 1,000 economists protested; foreign retaliation; (Hoover administration).

1934 Hull Trade Pacts Reciprocal treaties to reduce tariffs and stimulate trade during depression; (F. Roosevelt administration).

1948 General Agreement on Tariffs and Trade (GATT) United Nations organization created to seek tariff reductions.

1962 Trade Expansion Act President received authority to negotiate tariff reductions up to 50 percent; aimed primarily at European Economic Community (later European Union); (Kennedy administration).

1963-
1967 "Kennedy Round" GATT talks aimed at tariff reduction, primarily with Western Europe; approximate 33 percent reductions; (L. Johnson administration).

1973-
1979 "Tokyo Round" GATT talks aimed at non-tariff trade barriers; included non-GATT members; (Nixon administration).

1974 Trade Act of 1974 President given authority to end tariff duties against products from developing nations; (Ford administration).

1993 North American Free Trade Agreement (NAFTA) U.S., Canada and Mexico end most trade barriers; (Clinton administration).

1994 GATT/WTO New GATT agreement signed; World Trade Organization (WTO) formed; (Clinton administration).

[BW2221]

Many FReepers confuse "free trade" with "fair trade." The Japanese have have long had very restrictive import laws that make it very difficult and expensive to sell non-Japanese cars there (Fords, VWs or Hyundais).

In the 1960s Japanese manufacturers were selling TVs at a loss in the U.S. to drive American manufacturers out of business.

Reality is that many foreign countries have restrictive import laws and offer subsidies to manufacturers to help them compete in the U.S. market.

[Hawthorn]

> the Big Lie is that Smoot-Haley caused the Great Depression, complete nonsense <

The SHT didn't "cause" the GD all by itself, but it was certainly a contributing factor.

[ProCivitas]

More 'Economic Patriotism' Ping.

"W.W.D.H.D.?" What Would Duncan Hunter Do?

[BW2221]

"Yup the Big Lie is that Smoot-Haley caused the Great Depression, complete nonsense."

You're correct, the Great Depression hit Europe long before the United States.

I actually believe some FReepers revel in the idea that more jobs are being shipped overseas (as long as it's not their job).

[Hawthorn]

> Reality is that many foreign countries have restrictive import laws and offer subsidies to manufacturers to help them compete in the U.S. market. <

You're correct. And by doing so, these countries both (1) hurt their own citizens and (2) help American consumers. What's not to like?

[BW2221]

"It worked for Harley-Davidson."

Harley also made some smart marketing moves like giving Harleys to well-known people who they knew would be photographed on them.

[MIchaelTArchangel]

Maybe if Detroit would stop turning out crappy products (with a few exceptions such as the Cadillac product line) more Americans would buy domestic vehicles?

[BW2221]

"You're correct. And by doing so, these countries both (1) hurt their own citizens and (2) help American consumers. What's not to like?"

Please explain how the Japanese import tarrifs have hurt its citizens. That's something I (and most of the rest of the world) missed.

[Hawthorn]

> I actually believe some FReepers revel in the idea that more jobs are being shipped overseas <

Yes, indeed we do, because the transfer of low-productivity jobs overseas frees up our American labor force to engage in more productive activities. It's called "comparative advantage" -- a law of economics that's as immutable as the law of supply and demand.

And just as Karl Marx, Joe Stalin and Pol Pot couldn't repeal the laws of economics, neither can Lou Dobbs nor Nader nor Pat Buchanan nor Alan Tonelson.

[Toddsterpatriot]

Please explain how the Japanese import tarrifs have hurt its citizens.

They pay more for imports and have fewer choices. You know how expensive rice is in Japan?

[Doohickey]

You talk like there were no tariffs before or after Smoot-Hawley. Of course, that's bunk. Our government used to operate on income generated from tariffs. If there were any integrity at all left in government, it still would.

[Doohickey]

Something to think about: Is it at all possible that we import more manufactured goods because Americans consume so much more than in the past?