Here comes Smoot-Hawley II (ObamaCare) - Health care, Democrat's kamikaze mission

Politico ^ | December 18, 2009 | Larmar Alexander

[dalight]

But this wouldn’t be Congress’s first historic mistake.

The Smoot-Hawley Tariff of 1930 to “buy American” sounded like a good way to protect jobs by keeping out cheaper foreign products. Historians agree it was a mistake, setting off waves of retaliatory tariffs and making the Great Depression worse.

[padre35]

"Business have to make a profit. If you have many competing competitors, you have duplicated owners, accountants, sales staff, advertising other back office expenses. You most also might have many under capitalized companies that can not afford expensive moder machinery and process. So, you do’t get lower costs from more competitive companies becasuse either they can not, because of small size and low profits with a market that is materially full filled, or they are inefficient and don’t have the excess profits to fund new equipment" That would be true wherever it occurs, and it presumes that companies cannot compete, which is an odd position to take, if that were true, it would be true everywhere. "In your case what usually happens is either price fixing, or consolidation, then you might have two, price fixing, or even one company. This is the usual effect seen in many Latin and South American countries." And that is what Anti Trust laws are for, they seemed to work well for splitting up MaBell. "You can drive from northern New Jersey, up to Maine, then accross that width as far south as Pensilvania, and along the lakes to as far West as Detroit/Gary and there are hundreds of dead cities all run on Democrat economic notion" And you can drive from upstate SC, Northern and Central GA, Central NC, Western NC up into WVa and see the dead and dying former towns that are the products of Globalism's curious notions. All areas that used to be reliably Republican and Conservative who have begun voting for Democrats in local, state, federal and presidential elections...

[padre35]

I dunno...perhaps I would purchase domestically produced steel. and avoid the tariff.

[1rudeboy]

But the tariff was imposed so that domestic steel producers wouldn’t have to lower their prices, and in a good number of cases the domestic steel producers will raise their prices higher than where those prices would be in the absence of the tariff. Still believe in a free lunch?

[1rudeboy]

Not to mention, you won’t be the only one calling a domestic producer when the tariff rate goes up. Others will, as well. What usually happens to prices when demand increases?

[padre35]

Why, prices will increase of course, until the become parallel with the tariff, and until extra capacity is created to handle the increassed demand...

[1rudeboy]

". . . if anything it creates uncertainties in an already uncertain US Business climate as well as raises taxes in the middle of a recession."
--December 19, 2009 6:55:49 PM CST

"Why, prices will increase of course . . . ."
December 20, 2009 10:29:02 AM CST

Did I miss something over the past twelve hours or so?

[padre35]

Please, prices do increase, even during a recession, look at the local gas station.

Which of course, ignores the fact that Tariffs are voluntary taxation as well as domestic competition is just as viable as one’s beloved Globalism, the problem is it doesn’t maximize Global Corporation’s profits.

[1rudeboy]

You’ve switched reasons for price increases between your comment #45 and your comment #47.

[Toddsterpatriot]

Which of course, ignores the fact that Tariffs are voluntary taxation

How is it voluntary when domestic producers raise their prices because of the tariff?

the problem is it doesn’t maximize Global Corporation’s profits.

Does Arcelor Mittal in the US benefit when US steel tariffs are imposed?

[padre35]

A price increase is not a tax increase one winds up in the private sector the other into the goverment’s coffers.

As for Mittal...it would depend on the domestic market of course, of course Honda and Nissan would probably benefit as compared to say Mercedes or Hyundai as they have more internal productive capacity, if anything they would benefit greatly as domestic manufacturing would expand.

[1rudeboy]

Returning us to my comment #21:

It is a false choice. Stop trying to imply that a tax is less of a tax because it is “indirect.” You still pay it . . . what difference does the existence of a middleman make?

[Toddsterpatriot]

If the government forces you to give money to a company, that's okay. /paleo off

[1rudeboy]

“I have ten dollars in my pocket to pay for steel. Whoops, steel now costs twelve dollars. Um, that’s ok, because . . . um, more capacity down the road will lower the price back to ten dollars.”

[Toddsterpatriot]

of course Honda and Nissan would probably benefit as compared to say Mercedes or Hyundai as they have more internal productive capacity

How do higher steel prices in the US benefit auto makers using US steel (like your examples of Honda and Nissan)? How do higher US steel prices hurt auto makers overseas (like your examples of Mercedes or Hyundai) using foreign steel?

[Toddsterpatriot]

My former employees will appreciate that they were put out of work by the government raising non-taxes.

[1rudeboy]

Well, we could have the government set-up some GSE’s to help low-income families buy steel. What could possibly go wrong?

[Leisler]

We didn’t have an interventions policy vis a vis the Connecticut Valley and the Five Nations, the French in the upper Mid West, the British along the outlet to the Columbia River, the Mexicans in the lower West, the Spanish in Cuba and the Philipines, Boxer Rebellions, forced opening of Japan..WWI troops in Russia?

Sorry, I got facts and history.

Post war, we have lost less men in all the wars/conflicts combined then in the last two months of WWII.

China is a dispute, that will be settled, no different that our French wine/cheese dispute.

[Leisler]

These are the same states trading( there’s that word again) mill jobs for assembly of BMW’s, Hondas, now Boeing Aircraft?

Wasn’t the lefty, enviro’s shutting down low cost coal?