Posted on 01/28/2016 11:55:58 AM PST by AngelesCrestHighway
Donald Trump is right when he calls for high trade tariffs to protect American jobs, according to one brave economist. The Republican presidential candidate’s protectionist rhetoric has been playing well with voters heading into the primary season. But Trump has been attacked by economists and the media for violating the sacred belief that free trade is always a good thing, writes Peter Morici, a professor at the University of Maryland. Morici argues that China hasn’t been playing fair, however, and says the artificially weak yuan has cost America hundreds of thousands of jobs. “Trump’s proposals for fixing trade — starting with China — address the salient issues of currency, trade barriers and subsidies,†Morici wrote on Newsmax. A recent academic study by three prominent labor-market economists found China’s entry to the global trading system 15 years ago has caused deep and lasting harm to Americans.
(Excerpt) Read more at marketwatch.com ...
No such lesson has been learned. The consumer is free to purchase a cheaper non-tariffed item. The tariff is not a tax for this reason.
OK Mr. Keynes.
Correction: The tariff is not a tax on the consumer for this reason.
Sure they can. It depends on how much profit margin they have.
A tariff on one bad actor doesn’t prevent the consumer from purchasing goods from another actor. The consumer has a plethora of options in the age of the global economy.
Whatever you say!
Globalist!
Free trade has ruined out industry, manufacturing and jobs!! We pay tariffs in China. They don’t pay here. This is going to change very soon.
You have no idea how tariffs work, do you?
yes — Do you?
Looks like it. Tariffs are applied to imports and paid for by the country's consumers that buy the goods, since they are almost always passed along by the importer. We don't pay China's tariffs and they don't pay ours.
Not at all. That is where you are all screwed up. Tariffs are paid by the MANUFACTURER/ shippers!!!~ You need to rethink!!You have no clue. Did you just get out of college?
?
Nope. The tariffs are paid at the border. Do you deny that?
You really don't know what tariffs are. Tariffs are applied to imports. U.S. companies sell their goods to a local business and that tax is applied when the goods are landed. It's the importer that pays them and not the exporter.
Taxes are paid when the goods are landed in the country in question. I sell a widget to someone in China for a set price plus shipping. The widget is shipped to a warehouse in China and delivered to the person I sold it to. They pay the tariff at that time.
At the time of passage the economy was measured in GNP not GDP and the USA did not rely on trade to keep its economy running. Trade was an after thought as the USA was virtually self sufficient in everything as the Nazis found out a little later on. The GNP is similar to GDP and the figure not adjusted for inflation is 90B. So how much of GDP did trade represent? The answer is that exports accounted for $4Billion dollars which was around 4% of the economy, a tiny amount of the economy.
So if Smoot Hawley reduced exports by 66% then the USA lost $3B or around 3% of GNP, tiny. A 3% loss in GNP is not even 1% per quarter. It is not good but had almost zero effect on worsening the economy.
You are really mistaken. The amount of labor per manufactured (durable) item is a very small part of the retail price and averages around 6-8% and that is for domestically produced durable goods. For ChiCom made durable goods figure is around 2% per item pays for labor. A small tariff would balance that indifference. Maybe 10% tariff.
Free Trade theory is built on a mountain of lies and misinformation.
You pay again when yo have to replace the poor quality ChiCom product every 2 years instead of every 5 years for the domestic model.
Do you have any pro American views?
Free Traitors™ try to separate politics form international trade. That is like trying to separate politics form war. It cannot be done. Internationally trade and war are THE MOST POLITICAL ENDEAVORS OF ALL.
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