Posted on 05/17/2016 12:12:21 PM PDT by Jim W N
The ROOT CAUSE of our economic woes including business leaving our shores is the FEDERAL GOVERNMENT unconstitutionally forcing minimum wage on business. Minimum wage, regulations, unions, and high taxes are THE CAUSE of businesses moving elsewhere. Federal government is the problem NOT the solution.
Although I support Trump, his tariff proposals are MORE federal government and do NOTHING to attack the ROOT CAUSES of the loss of jobs in our country. Tariffs have the appearance but not the reality of a solution - they are only palliative and delay the actual reforms needed.
A tariff is a tax and China and Mexico don’t pay the tax, WE, THE AMERICAN CONSUMER PAY the tax in the form of forced higher prices. TARIFFS, LIKE INCOME TAX AND INFLATION, DIRECTLY LOWER OUR STANDARD OF LIVING.
(Excerpt) Read more at investors.com ...
Sirius Lee wrote: “It lowers the cost of labor in other countries to the point where the quality suffers.”
Tariffs lower the cost of labor in other countries? That can’t be a ‘Sirius’ answer.
I fail to see how any of these couldn’t be reduced by reducing the size of government.
Money, as a market force is fluid. It will always flow to the lowest point, there being no other artificial obstacles, such as regulation, or artificially high labor prices.
We need a government that recognizes that we must become the attractive setting for business that we once were before Roosevelt and the progressives started pulling us down the road to socialism.
Perhaps the solution is forming a hybrid political party in the US, something that would be used to organize boycotts involving tens of millions of people of certain companies, for example like Walmart. Attack it from the demand side.
Also, why shouldn’t China be punished for their bad behavior, such as stealing intellectual property, violating patents (Segway, anybody?).
Why is free trade used as an excuse by people who think the US should just roll over and take it up the anus from China and other Third World cesspools?
If you ask me, its a damned shame we didn’t drop about 50 hydrogen bombs on China when were fighting them during the Korean War.
The only ‘good’ reason for a minimum wage is IF a nation has a manipulated economy and a manipulated immigration system.
In that case, wages are not adjusting to their real level. As many have said, illegal immigration UNDERCUTS the wage of workers at the lower end.
The manipulation of the economy through trade deals that send jobs overseas so companies can benefit from 50 cent an hour labor ALSO manipulates what a real wage would be.
Reagan heavily tariffed motorcycles, not because Harley Davidson needed protection, but because foreign companies were dumping their products here and able to do so because of manipulated currencies and wages. When it became more of a balanced market, Harley Davidson was able to compete and reestablish itself.
The best market is a truly free market and not these ‘fake free markets’ that our liberal/socialist government has allowed as part of their concession to fascist-like elitist coordination with crony corporations.
Your child labor laws comment as somehow proof that the federal government is not a major problem in America today and THE cause of business leaving America is simply way off point and is something I’d expect to see on MoveOn.org. Yes, a waste of time.
Stay on the subject: how minimum wage is a core issue of business fleeing America and how tariffs fail miserably in dealing with the core issues of such flight.
A tariff is not a cost of production. it is a cost ADDED at the point of import. the only extent that it is seen/perceived by the producer is in its impact on the quantity demanded. I have a few economic texts in my office at home, so I don’t even need to visit the stone building you mentioned. I also have online access to several economic texts as well. You are correct that producers bear the final cost of production. External costs, however, are borne by consumers.
No, comparative advantage in opportunity cost refers to the fact that factors of production are finite and if you allocate those factors to manufacturing one good, then those factors of production are not available to produce other goods. The value of the goods forgone in using resources to produce a given good is the opportunity cost of producing that good. When that opportunity cost is distorted thru externalities such as government subsidies, tariffs, excessive regulation, etc. then resources are allocated to produce goods that the market would have allocated elsewhere. The worker being paid more than the market would bear to produce the good benefits, but fewer goods overall are available to consumers at the same level of income because of the inefficient allocation of resources. An allocation of resources based on comparative advantage would result in higher quantities of more goods available for all consumers.
Really? I guess I misunderstood your post.
Any company engaged in DOMESTIC manufacturing should be exempt from income taxes. (emphasis added)
Carl's, Jr. can choose to "eat" the additional employee costs. But what rational corporation chooses to eat the costs when they don't have to?
sigh...again, facts not in evidence.
again mine was a response to a specific general question-statement you made.
Child labor was a contributing factor in america’s sucsess in trade for the period you indicated i.e. thru the 1920’s.
sorry. I should have spelled it out from the get go.
now more like a waste of space..
FreeRegards
It is amazing that people don’t remember, probably because they don’t teach history anymore, is that this country’s only source of income to run it was tariff’s and fees, there was no income tax the first 130 years or so.
Completely off point.
Bye.
Right and another amazing thing is how people confuse and equivocate the purpose of using tariffs for government revenue (a valid and preferred way to tax rather than the noxious income tax), with the purpose of using tariffs to interfere with business practice and the market economy (an exercise in futility like shooting yourself in the foot). Two entirely different animals.
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