Posted on 08/29/2015 2:15:27 PM PDT by yongin
The fiscal conservative group Club for Growth put out a news release that reads, in part:
Donald Trumps threat to impose new taxes on U.S. car companies will hurt the American economy and cost more American jobs, said Club for Growth President David McIntosh. It should thrill liberals and Democrats everywhere that Trump wants to create new taxes and start a trade war to force American companies to work where he demands.
Instead of lowering corporate taxes, cutting unnecessary regulations, and fostering a more profitable environment in the U.S., as some Republican candidates have proposed, Trump wants to unilaterally threaten a major U.S. manufacturer with higher taxes.
The strength of the U.S. economy has historically been our free markets. But, for the past seven years the Obama Administration has driven up costs for consumers by attacking free markets with costly regulations and executive orders. Now Donald Trump wants to one-up the Obama pen-and-phone method by threatening global companies like Ford with higher taxes to make cars for Americans. If Donald Trump gets his way, the heavy hand of government will get substantially heavier, and car buyers will be left holding the bag.
Well, good for him, but why stop there? Trump advocates protectionist policies against Mexico and China, says NAFTA has been a disaster and advocates a huge scheme to round up illegal immigrants that would cost hundreds of billions in taxes (with no method for paying for it). None of this is remotely conservative or the sort of thing the CFG and other pro-market groups support.
(Excerpt) Read more at washingtonpost.com ...
Trump says NAFTA is a disaster, not as an idea, but because of poorly designed agreements, poorly negotiated. His point is that it is not “free” trade. Jennifer is not being completely truthful.
Free Traitor dogma 101:
Corporations do not exit as a workfare program for the USA. They can hire who they want, where they want, whenever they want in what ever country they so desire. If they operate in the USA, and they feel that wages are to high, they must be given a free hand to import as many workers as possible to get the labor down to what they think is reasonable to buy time before they ultimately move production to a third world country. They must be given free access to US markets regardless if other countries deny our products free access. They do not exist to bring the lowest cost, highest quality and best designed product, although that can happen and does happen but it is not even a priority.. Corporations exit only to maximize ROE for the stock holders.
This is the dogma that I have been fed by thbe Free Traitor around here for years and years.
Agreed. Don't tell central.
Imports are equal to 16% of our GNP. So if you tariffed all imports at 25%, The worst case is that youd see a one time inflation of about 3.4%.
3.4%, plus the increased cost of the US products.
Obviously. Although you are free to form one that is.
They can hire who they want, where they want, whenever they want in what ever country they so desire.
Too much freedom for you?
If they operate in the USA, and they feel that wages are to high, they must be given a free hand to import as many workers as possible
I disagree.
They must be given free access to US markets regardless if other countries deny our products free access.
Free access? We have thousands of pages of tariffs and rules about imports.
They do not exist to bring the lowest cost, highest quality and best designed product, although that can happen and does happen but it is not even a priority..
If you can make the lowest cost, highest quality and best designed product and you can't attract investment or make a sufficient profit, you'll go under or fail to start up.
Corporations exit only to maximize ROE for the stock holders.
Why do you feel they exist?
I don't see the cost of US products being impacted much.
You've just raised the price of imported goods by 25% but you don't think the price of the equivalent US produced good will be impacted much?
So maybe a 20% increase in price? 15%?
Competition between US competitors will limit prices increases.
Eventually. Partially. Probably.
No I don’t.
There is no reason a US good that doesn’t directly compete against a tariffed good would go up at all.
US products with sufficient competition between US producers will not go up.
And products without sufficient competition will draw additional competitors.
Maybe but the USA only collects about 1.5% of the total amount imported in tariffs. Very insignificant.
I agree that a 25% tariff on bananas won't impact the price of corn.
US products with sufficient competition between US producers will not go up.
Isn't the entire point of the 25% tariff we're discussing to increase the price of US goods that directly compete?
And products without sufficient competition will draw additional competitors.
Yes, a 25% increase in prices tends to do that.
Yes, thousands of pages of rules and a very low average rate.
Why do you feel they exist?
Why do you feel they exist?
Corporations exist to make a profit, not to do anything possible to maximize profits; things that are immoral or weaken the USA. Corporations have greed as there motivator for better or worse, greed is good most of the time. HOWEVER THEY MUST BE REIGNED IN when they act not in the best interest of the USA.
Agreed.
not to do anything possible to maximize profits;
So if they can move out of California and into Texas, should that be allowed?
things that are immoral or weaken the USA.
And when Obama, or any other useless politician, does something immoral or something that weakens a corporation, then what?
HOWEVER THEY MUST BE REIGNED IN when they act not in the best interest of the USA.
Is there a limit to the regulation you can impose on them?
(This applies to manufacturing only.)
So it depends, a tariff is on the upper end of the scale of punishment.
Their competitors can either increase their prices or lower their prices to gain market share when a domestic competitor is fined and/or tariffed, as we have already discussed.
I agree that regulations can increase the price of a product, but it is my contention that corporation love those regulations because small start ups can never meet those regulations and it keeps the "riff raff' out.
Do you mean when foreign competitors are fined/tariffed?
I agree that regulations can increase the price of a product, but it is my contention that corporation love those regulations
Much like tariffs, excessive regulations help corporations and government while harming consumers and smaller competitors.
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