Posted on 03/19/2018 12:50:03 PM PDT by Thalean
Shapiro claims that I favor total state control of the economy because I think it is possible to simply pick the best industries and subsidize them. Apparently, tariffs are Communism, and I am Stalin. . . Shapiro has it entirely backward: tariffs are the form of taxation most consistent with small government. . .
tariffs are antithetical to big government because they preclude socialism. How? Tariffs make imports expensive. This encourages domestic production and discourages offshoringthereby boosting demand for American labor. Basically, tariffs create stable jobs and increase wages for American workers...
The key to solving this puzzle is recognizing that employed Americans are less likely to elect socialist governments because they will not benefit from the policies. The converse is likewise true.
Consider what happened in Americas Rustbelt. The region used to be a Republican stronghold. However, when millions of people began losing their jobs because of offshoringcaused by asymmetrical tradethe region turned blue. People voted for socialism to insulate themselves from the ravages of economic globalization. Socialism was a direct, and sadly iatrogenic response to free trade. It did more harm than good: Democratic governments raised taxes and imposed regulations that further crippled American industry. They made a bad problem worse.
Shapiro must answer this question: Were the alleged gains from freer trade with Communist China worth the proliferation of socialism in America? Was saving a few dollars on your $1,000 computer worth decades of Democratic governments, which damaged the U.S. economy with higher taxes and more regulations? I doubt it. We cannot limit our discussion of tariffs to their economic consequencespolitical reality forces Shapiro to choose: tariffs or socialism? What kind of big government does he want?
(Excerpt) Read more at amgreatness.com ...
Where I draw the line is with tariffs being used to protect inefficient industries.
All industries are inefficient if they are not manned with what is essentially slave labor as they are in China.
Not necessarily with the unions. It was competition with Japanese and German vehicles which helped to improve our car quality.
I agree with you about the purpose of tariffs though
The UAW is the opposite end to slave labor?
Not to mention the fact that in China and many other countries, you have state-subsidized industries that can afford to sell goods barely above (and sometimes below) production costs thanks to those subsidies. Additionally, industries in the developing world don't have to worry about pollution regulations - they can just dump their industrial waste raw, wherever they please.
The bottom line is that unless the US wants to convert its economy to a system of de facto slave labor, state owned/funded industry, and an environment of toxic air, water, and soil, imposing tariffs on the manufactured goods of China and other "developing" economies is the most reasonable way to account for our own overhead costs and level the playing field.
Corporate mergers are as much if not a greater impediment to efficiency and good service as labor unions, which is why I'm also in favor of strong anti-trust laws.
You are correct IF there is domestic competition. Some of our industries are ground into dust.
Agree
It’s non sequitur, well-outlined in the OP article. I’m happy to have finally found an argument which mocks the free-traders on BOTH sides.
Plus the apt comment by MNJohnnie on “managed trade globalists.”
The situation is DYNAMIC and not STATIC. Factories are being built all the time, even in the USA.
I’m not against organized labor. just its criminal and political activity.
The situation may be dynamic now, but starting Ninties it has not been.
I am not against organized labor either. But I am against forcing someone to join a union as a precondition of employment.
And, of course, unionized government employees.
What Free Traitors want you to believe is that the supply function is static and no new domestic suppliers will EVER come on line. Despite their best efforts brand new factories are still being built in the USA all the time. Not as many as are closed mind you but the situation is dynamic and not static. With more domestic supply will mean pressure to reduce prices.
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