The Consequences of Defeat in an Economic War

Economy In Crisis ^ | August 31, 2016 | George Barlow

[central_va]

America must stop thinking that protecting our economy is a bad thing. Protectionism, through appropriate and applicable tariffs could save our jobs, homes and economy. But, as long as we keep apologizing for doing what we must, we will not be able to rejuvenate our economy. We will keep begging for whatever jobs foreigners are willing to throw at us. Is this what we want to be – a nation of beggars? We need to be a proud nation, a strong nation once again and re-instate needed tariffs to protect and rebuild our economy.

[central_va]

Why must we always apologize for trying to protect ourselves with equalizing tariffs as we have done in the past and most of our foreign competitors do in various ways? They cry “foul” when we try to do it and since they are our bankers and they have so much leverage against us — we foolishly apologize and accede to their demands greatly to our detriment.

[cba123]

I agree 100%.

America has been sold out for over one entire generation.

EVERYONE has been selling us out. Both parties. Every single “leader”.

Until Trump.

[SMARTY]

The whole Liberal guilt and ‘apology shtick’ is passé...and for my money - it was NEVER appropriate!

[central_va]

Bump

[central_va]

“Conservative” globalist free traders are a big of a threat to the USA as the left wing liberals.

[Uncle Miltie]

Tariffs are tax increases for the Leviathan State!

How many thousands of bureaucrats will be needed to operate the new Protectionist regime?

Why do we assume they are so intelligent that they can force you and me to trade with the vendors of their selection?

If those bureaucrats make a mistake, who pays, them or us?

How is this different than the bureaucracies against whom we conservative rail each day?

How is it smart to encourage Businesses to spend more and more of their potentially productive energy pursuing protection by bureaucrats rather than producing better product to serve you and me?

Supporting a classical conservative economic position (a la Friedman, Hayek, Smith) that decries political intervention in individual freedom is no longer Politically Correct at FR. Therefore, I will log off for the day. Y'all have a great time calling me names and arguing on behalf of higher taxes, more bureaucrats and less freedom.

[MNJohnnie]

I am continually amused that the “Conservatives” rush to defend a trade system designed by European Socialists and American New Dealers in the aftermath of WW2 as “Free Trade”. No it actually Managed Trade. And i has been purposely manged to the detriment of US Interests.

The theory was trade and financial tools could be used to leverage the strength of the US Economy to level out disparity in the world economy and thus promote stability and peace. Supposedly the US could “absorb” the costs of managing that economic weakness due to the strength and diversity of its economy.

Maybe made sense during the Cold War but needs serious re-examination in our 21st century globalist economy

[econjack]

If the only tool on your tool belt is a hammer, pretty soon all problems look like a nail.

Tariffs, quotas, and other import restrictions are one way to affect the balance of trade, and usually a bad one at that because they hide the problem; they don't fit it. The fact is that we are not as competitive as we once were and part of that problem is capital investment. Our stock of capital, especially in manufacturing is getting pretty long in the tooth. This means labor is less productive and wages stagnate under such a system.

The solution: tax incentives to modernize the capital stock and raise labor productivity. Our businesses face the highest corporate taxes in the world. Personally, I would lower corporate taxes to 15% and set personal income taxes at 17%; a flat tax, no deductions, no pre-bate. Do that and capital investment in the US would skyrocket; the Pacific Rim would trample themselves to build here. Wages would rise and economic growth would increase. If you look at what happened after the Kennedy and Reagan tax cuts, IRS receipts actually increased.

Like it or not, corporations drive this economic engine and painting them as the bad guys and the poor unemployed at the good guys is simply stupid. How many of you were hired by a poor person? A rising tide lifts all boats and tax cuts is the best way to bring that tide to the US.

[central_va]

George Washington, that tyrant /sarc, Signed this into law.

The Tariff Act of 1789, was the first major Act passed in the United States under its present Constitution of 1789 and had two purposes as stated in Section I of the Act which reads as follows;

"Whereas it is necessary for that support of government, for the discharge of the debts of the United States, and the encouragement and protection of manufactures, that duties be laid on goods, wares and merchandise:"

BTW did you vote for Mr. Trump?

[central_va]

Tariffs work every time they have been tried. Conversely open access of domestic markets to 3rd world made goods destroys industrial economies, societies and countries.

Did you vote for Trump?

[stocksthatgoup]

Thanks for the quote by Milton Friedman

[central_va]

Who said this:

But, in general, the protective system of our day is conservative, while the free trade system is destructive. It breaks up old nationalities and pushes the antagonism of the proletariat and the bourgeoisie to the extreme point. In a word, the free trade system hastens the social revolution. It is in this revolutionary sense alone, gentlemen, that I vote in favor of free trade.

[central_va]

It isn't what "renowned" economist know about economics, it's what they don't know, or choose to ignore, about history.

Politics and economics are intertwined. You cannot understand one without the other.

[Toddsterpatriot]

Your hero, a failed economist.

[econjack]

Work...in what sense?

When they put tariffs and quotas on oil imports starting in the 1950's, how did that work for you? You paid four times more for fuel than you would have otherwise. Where would be be today if we had capped our wells in the 50's and sucked the mid-East dry for $.25 on the dollar and used their crude in our refineries? During the 1970's we could have uncapped those wells and laughed as the mid-East pumped nothing but sand.

The same for Japanese steel in the 1970's. We doubled the price of steel to protect an industry using 1890's technology. The result: we protected about 5,000 steel workers' jobs, but raised the price of everything that uses steel from toasters to cars for 300 million people. 5000 people are better off at the expense of 300 million. That's how you define "work"?

Tariffs, quotas, and other protective means don't "work"; they hide the problem. Let's fix it, rather than hide it.

[XEHRpa]

Good Old Karl Marx:

Source, MECW Volume 6, p. 450;
Written: 9 January 1848;
First published: as a pamphlet in Brussels, February 1848.

http://marx.libcom.org/works/1848/01/09ft.htm

[central_va]

Example 1: South Korea. Behind an impenetrable wall of tariffs, that country went from dung burning dog eaters to a 2nd world industrialized country. Try to export a car to South Korea and get back to me.

Example 2: China. During the Cold War Republicans(Nixon) came up with the numb skulled idea to industrialize China so as to threaten the USSR. Well it back fired and now they are destroying our industrial base behind a wall of tariffs. And we lent them the capitol and expertise to do it! Lent, right. We'll get that back because we will sell them a lot of stuff! Didn't happen.

Need I continue?

[American in Israel]

So a trade tariff was put in place to support the Government. There were no income taxes, corporate taxes, sales taxes or the tax on productivity by having to build widgets the way some EPA goon has decided is good for the Glo Bull warming scam for carbon taxes, or fuel taxes or manufacturing fees, or licensing fees or environmental mitigation fees or traffic mitigation fees, or property taxes or school taxes or city service fees, or sewage fees or water fees or trash pickup fees.

You get rid of the 90% tax rate from all of the above, and put back in place a market system of free enterprise and then get back to me on a simple trade tariff.

But to ignore the 800 pound gorilla in the room while thumping your chest is either duplicitous or just plain sheeple stupid.

I cannot believe how brainless this generation is that they scream for more taxes to save their jobs! Ya just cant fix stupid...

[American in Israel]

Tariffs work to destroy trade every time they have been tried. For some reason, the other guy is bright enough to see your tariff and raise you 2%.

Trade dwindles, costs go up, and government goons buy more gold plated toilets.

Trade tariffs work for the tax collectors every time. But they NEVER work for anyone else.

[central_va]

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