Trump's Trade Tirades Won't Benefit Consumers, Workers

Investors Business Daily ^ | Dec. 15, 2016 5:18 PM ET | JESSE HATHAWAY

[expat_panama]

In a video posted to his political campaign's YouTube account on Nov. 21, President-elect Donald Trump vowed to withdraw the U.S. from the ongoing negotiations related to the Trans-Pacific Partnership (TPP), a 12-nation trade agreement designed to reduce government barriers and tariffs restricting exchanges between consumers and producers in Asian countries.

By restricting trade and making it harder for goods to flow in and out of the country, Trump, who campaigned on promises to make government work for the working man, would actually be making government work for special-interest groups, such as industry lobbyists.

Milton Friedman, an economist allegedly revered by many lawmakers who are now backing Trump's trade tirades...

...that nationalist attacks against free trade are often the first step toward an assault on freedom.

"Interferences with international trade appear innocuous; they can get the support... ...leads inevitably to the rationing of imports, to control over domestic production that uses imported products or that produces substitutes for imports, and so on in a never-ending spiral."...

...The effects of Trump's anti-trade rhetoric aren't limited to keeping U.S. goods off the shelves in Japan or Malaysia, though. In September 2016, Trump promised to add a 35% tax on automobiles...

...charge them a 35% tariff," Trump told morning talk-show hosts...

...economic nationalism, implemented in the form of a wall against shipping goods purchased by American consumers...

...mistakes is to judge policies and programs by their intentions rather than their results." After running a campaign predicated on helping the little guy get ahead, such policies would have the opposite effect.

Trump's economic populism may be intended to benefit the working man and not the connected insider, but restricting free trade and giving Washington a larger role in people's economic decisions will only benefit government and those who depend on government for their paychecks.

[keving]

Funny the rich make more money than ever and others don’t have jobs. Maybe the investors are looking for their own interests.

[ari-freedom]

he has no idea what Trump is talking about!
Trump’s plan explained:

https://www.youtube.com/watch?v=aGLyHpZKWWI

[HarleyD]

Well, my 401K is looking pretty good these days so a whole bunch of other people must think Trump is on the right track.

[expat_panama]

Good morning to all our fellow traders slogging thru the end of an excessively interesting week (but don't worry, no Fed announcements today, just Housing Starts and Building Permits).   Yesterday the NASDAQ and the S&P rose 4/10ths of a % in mixed trade (as usual the NASDAQ showed the strength) but metals tanked w/ gold at $1,136 and silver falling to $16.19. 

That's before.  Futures traders now see stocks'n'metals going flat/up (+0.07% 'n +0.04%).

We can talk about it all on these threads:

• Factory Growth Jumps, Builder Sentiment Soars As Trump Fuels Animal Spirits
• NAFTA 2.0: Upgrading Economic Ties To Boost Competitiveness
• Obama environmental legacy at stake as GOP, industry align
• Larry Kudlow is being considered to chair Trump's Council of Economic Advisers

[jsanders2001]

> Funny the rich make more money than ever and others don’t have jobs. Maybe the investors are looking for their own interests.

Yeah imagine that. Those evil capitalists! Why won't they share the money they worked for?.../s

[jsanders2001]

All I know is that small busines owners that I have talked to said they are getting more work and I’ll put a lot more stock in that than some talking heads from the MSM that are being fed false data by the government to make Trump look bad.

[baltimorepoet]

Funny how Malaysia can undercut US workers by employing literal slave labor.

Someone needs to take these globalists and bury them up to their necks in sand at the low tide point on a beach.

[ThePatriotsFlag]

These people said Hillary would win easily. Fake news site.

[bert]

Investors invest to make a profit. Those that have no jobs should go into business for themselves. The fact is, many do

[Caipirabob]

Again the “elites” miss the point. A toaster at $10 is an attractive price point in a normal market but with 100,000,000 Americans unemployed it is unobtainable. A toaster at $40 is a less attractive price point and a discretionary purchase, but an American with a job and reasonable salary can now make a decision to actually buy it.

[Joe 6-pack]

Yes, curious how all the people who were telling Trump that he was running his campaign wrong are now wanting to advise him on policy.

[hawg-farmer - FR..October 1998]

Yeah imagine that. Those evil capitalists! Why won’t they share the money they worked for?.../s /s

[cp124]

>Yeah imagine that. Those evil capitalists! Why won’t they share the money they worked for?.../s

It is hard to hire lobbyists and pay off politicians to pass trade deals that favor just them and other countries and their slave labor.

[BRL]

“Tirades” ... neeeeext.

[oldplayer]

Fake news or fact?

Milton Friedman cited here, didn’t say anything against Trumps tweets or so-called “tirades.” Friedman died in 2006.

[USS Alaska]

By restricting trade and making it harder for goods to flow in and out of the country, Trump, who campaigned on promises to make government work for the working man, would actually be making government work for special-interest groups, such as industry lobbyists.

China has a 27-47% tariff on US autos and taxes on every thing we want to export to them, and we have none.

All this talk about a trade war is nutz.

When you are running an $800,000,000,000 {that's 800 Billion} trade deficit and a trade war starts, WE WIN.

Will imported consumer goods increase in price? Yep! But, our exports will increase and more Americans will be gainfully employed at a job that is not retail or fast food and pays way more than the minimum wage.

As a retired old fart, I know that we will be the ones that suffer the most, but it's part of the price we have to pay to:

MAKE AMERICA GREAT AGAIN!!!

[BaldJohn]

Well put, you are right on the money. Thank you.

[keving]

I agree generally in theory. But the reality is a few people receive profit, by the government trade agreementst, the remaining workers don’t have a regular wage or profit. These workers cant pay for the goods and services.

Do you think the government should enact unfair trade for the US and the workers? That was the election was about. It is Deplorable.

[Lazamataz]

TRUMP’S TIRADES!!!???!?

TRUMP’S TIRADES??!???!??!??!

I HAVE NOT HEARD ANYTHING BUT WHACKED OUT LIBERALS COMING UP WITH EVERY WAY POSSIBLE TO GAME THE SYSTEM AND DENY TRUMP WHAT HE EARNED!!!!!