I agree.
Here's a link to
Posted on 03/15/2018 7:44:21 AM PDT by reaganaut1
Dear President Trump :
It seems you are about to impose tariffs on imported steel and aluminum. You probably know that just about every economist except Peter Navarro thinks this is a terrible idea. But it’s not just us economists. Aside from the steel and aluminum industries, virtually the entire business community opposes the tariffs. The stock market took a major hit. And by the way, when did you stop using the Dow to keep score?
You tweeted that “trade wars are good, and easy to win.” Actually, trade wars are bad, and impossible to win.
Voluntary trade is a win-win proposition, as Adam Smith explained in “The Wealth of Nations.” Impeding voluntary trade is a lose-lose proposition. The key word here is “voluntary.” When foreigners rent rooms in your Washington hotel, both you and they win, right? If not, why would they stay there, and why would you accept them as guests?
Next, let’s consider your “easy to win” quip. It is likely that the U.S. can inflict more pain on its trading partners than they can inflict on us, as we rely less on trade than most countries do. Sure. But merely suffering less than your opponent seems a poor definition of “winning.” Trade wars are a pyrrhic form of competition in which even the victor is left worse off.
You say America loses whenever it runs a trade deficit with any country. But in 2017 the U.S. ran a $571 billion trade deficit with the entire world, which necessarily included deficits with dozens of individual countries. Were they all beating us—and if so, at what? The truth is that America’s huge multilateral trade deficit is made at home.
Here’s why. Nations that invest more than they save must borrow the difference from abroad.
(Excerpt) Read more at wsj.com ...
Yep. I’m one of those that believes that if the government had done nothing, the GD would have been a very temporary event, with weak players going under and the rest of the economy coming back just fine.
Precisely! It can not be a war when it is now “fair trade!”
We’ve been losing the trade war since 1875, dumbass.
People adjust to tariffs. They either adjust their product pricing to pass it on, or move their production onshore to avoid them. Nobody is walking away from a potential market of 330 million.
Yep. And a funny part of this is that a tariff is basically a tax increase, which can help pay off the debt while, at the same time, reducing the trade deficit. Of course, we all pay that tax in higher prices, but that’s how it works. Don’t want to pay the tax? Don’t buy the stuff.
The amount of money we save by growing our own food and eating at restaurants maybe once a month is huge. Etc.
Trade war against the US has been going on for a long time already.
TOTAL BS! This is how trade wars END you dummies! We have an $800 billion a year trade deficit with the world ... the war is raging. We can’t sell frozen pizzas to the Eurozone! Trump is RETURNING the trade salvo. He’s putting an END to this totally unfair trade situation and making America Economically Great Again. With the tariff in place he can then say, “you want it removed? Talk to me about how you are going to remove YOUR tariff or rule.”
Blinder is aptly named......none of them have noticed that Trump is adaptable to changing situations and never takes his finger off the pulse of something he is involved in.
We’ve BEEN in a trade war and getting the $h!t end of the stick for 3 or 4 decades.
Trump is just now fighting back
With luck they will stop what they are doing and we won’t have to implement tariffs, because they know Trump will kick their asses.
We know what the outcome of “Open Trade” (Free Trade for the US Market only) has been.
And those who foisted it upon us keep warning us the alternative “Fair Trade” is far, far worse.
Let’s see.
If their claim is true, it will be EASY for the US to shift back. We are the largest market in the world and everyone wants to sell here.
But for some reason it appears they don’t want us to find out what the actual outcome of Managed, Fair Trade will be.
Wow! This board is SHARP.
We’ve been in a trade war since Carter. Trump decides to fight back, and NOW it’s war.
I say, bring all this on, including the caca from the Journal, which has been completely unmasked in the last three years.
When trade starts getting more fair, and IP companies actually have something resembling a fair venue to take IP theft cases, I can’t wait to bask in the silence of the reporting.
We’ve been in a trade war for decades. We are just ceasing capitulation at this time.
I ask you sir, how can I have an intelligent conversation about trade with you when your starting position is so ridiculous - ignorant? Can't you just admit that the USA IS IN A TRADE WAR NOW? After 4 decades of trade deficits, de industrialization and and a trade imbalance reaching almost a trillion annually, can we start there with you admitting the obvious? Instead of you insulting my intelligence?
We are sick of the gloBULList elites GASLIGHTING us!!!
I have to laugh how “staunch Constitutional Conservatives” are busy defending a managed trade system created by UK Socialists, Stalinist Communist sympathizers and US “New Dealers”
These dogmas about “Free Trade” have no base in current economic reality.
We do not have “Free Trade, we have “Managed Trade” and since the 1940s it has been purposely managed to the US’s detriment.
In 1944 at Breeton Woods the US, Britain 42 other allied nations had a conference to set up a post WW2 international financial and trade system. The Conference, run by British and US socialists, communist sympathizes and “New Dealers”, crafted a new financial/trade system for the post war world. One of their theories was the war was caused by wild swings in trade and international finance.They crafted a system that was designed to smooth out those swings and promote global stability.
The theory was, that the US Economy was so big, diverse and strong, it could adsorb other countries finical/unemployment woes thus help prompt peace and stability.This expanded during the Cold War as the US used it economic muscle to counter the expansion of communist influence around the world.
What Trump is doing is challenging the assumptions and theories of the “Managed Trade” Globalists. Rather then cling to a 70 years old theory, maybe we need to realize that both World War 2 and Cold War are long over and we need a new trade system.
Sing it sister!
That works for me.
Let's get the EPA/OSHA?EEOC/NLRB off the necks of American industry so it can compete without tariffs. Watch the economy take off like a rocket.
Of course, the AFL-CIO moles that are posting here in favor of big tariffs will not want to go along.
Trade wars? Not a problem. What we need is to use tarrifs asa negotiating tool.
Everyone knows that is the manner in which guaranteed access can be had to the US market, its called tariff on the one hand, and on the other , a negotiated reciprocal trade agreement.
Tariffs merely bring to the table the parties who want continuing access to the US market.
That’s NOT how trade wars start. That’s how trade wars are AVOIDED.Thiose whoi prefer war? Well we do not need them as trade partners. And these will be few.
The author has swallowed some Liberal fascist progressive kool-aid, and for some reason, cannot get over it.
President Trump is doing exactly the right thing.
Haven’t spent a dime on the Journal in decades. Those open borders, endless wars neocon nutjobs can take a hike.
Investor’s Business Daily is where it’s at.
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