Posted on 08/02/2018 6:32:58 AM PDT by Moseley
In a trade war, we are told, foreign manufacturers are not affected at all by tariffs imposed by the U.S. government. Only U.S. consumers will pay more.
Yet, mysteriously, if a foreign country imposes tariffs on U.S. exports, it is a catastrophe for U.S. manufacturers and “farmers” (giant conglomerates). So we are told that U.S. exporters will suffer from a trade war. However, foreign producers importing to the U.S. will not be affected in the slightest.
That is not sound analysis, but propaganda. Saying that tariffs hurt U.S. consumers and U.S. producers, but tariffs have no effect at all on foreign consumers or foreign manufacturers is not a legitimate argument.
President Ronald Reagan was a protectionist. Reagan was a free trader. Sometimes Reagan was both a protectionist and a free trader on the same day, even in the same speech on the same day. Reagan was a firm adherent to “it depends.” Reagan gave strong voice to both sides, evidently as a way of encouraging a balance between the extremes.
Reagan imposed protectionist tariffs on imported motorcycles to save Harley Davidson from business failure, purely to benefit an American company. “President Reagan, asserting that he was trying ”to enforce the principles of free and fair trade,” imposed a 100 percent tariff today on some Japanese-made computers, television sets and power tools.” (Gerald Boyd, New York Times, April 18, 1987, page 1)
Tariffs, trade restrictions, free trade, protectionism and regulated trade – these issues have been a fault line dividing the Republican Party and the conservative movement for many decades, possibly more than a century. Yet advocates insist that free trade is the one and only conservative position.
These things are tools. They are not “always” true. They are not “always” false. They are not “always” or “never” the right tool.
(Excerpt) Read more at static.wnd.com ...
But when we spend $1 additional in China, the Chinese economy grows by $5 or $6. The U.S. economy is poorer by the $1 sent overseas. (Note that the actual multiplier at any given time depends on many current factors, so it won’t be the same number in China as in the U.S.) No one is permitted to comment on trade policy or tariffs until you do a homework assignment to study up (thoroughly) on “the multiplier effect.”
Second, we are told that foreign imports are cheaper for U.S. consumers to buy. Are they? Only if you ignore the total costs. The U.S. Navy patrols the shipping lanes to keep cargo moving. Rent the movie “Captain Phillips” if you have forgotten Somalia’s pirates taking over giant cargo ships from China, like the Maersk Alabama. Without the U.S. Navy intervening, the loss to pirates would be unrestrained and would approach 100 percent of all cargo ships passing Africa. Why not?
So according to the Free Trade Cult,
US consumers suffer from tariffs
Foreign consumers NEVER suffer from tariffs
US manufacturers and massive agri-business conglomerates (”farmers”) suffer from tariffs
Foreign manufacturers and “farmers” never suffer from tariffs
How do you figure?
US consumers pay the tariff
Foreign consumers DO NOT pay the tariff
US manufacturers pay the tariff
Foreign manufacturers DO NOT pay the tariff.
THIS IS RELIGIOUS MANIA — NOT ECONOMICS
Bingo.
The elite had to turn economics into a religion in order to get everyone to ignore social issues and demographic change.
Who needs a border wall when we can talk about how a modest cut in the capital gains tax will make us all rich? Pay no attention to the tranny who is reading propaganda your first-grader, dear conservative, worry about the “statists” who are trying to restrict the free flow of labor across our border! Do you WANT to pay $1,000 for a head of lettuce?!?!?!
Every other country and their army of economists understand this and actually exploits the USA’s continued ignorance and naivete on trade.
If I were President my position would be this:
1- Free trade as long as it is fair, meaning our products and commodities are not subjected by other trading partners to unreasonable and unnecessary quality or specification standards and anything other than nominal tariffs
2- Strategic/ defense commodities, industries and products will be protected and/or taxed in a way that guarantees the capability to produce during conflict AND peace. This level of protection gives these industries and companies an standard and obligation that their traded products, foreign or domestic, does NOT end up in the hands of nations or groups that are not our allies.
'Our' tariffs:
'Their' tariffs do the opposite
It's not hard to understand this for most.
Inflation: Prices, after the imposition of an import duty, are higher at first then become lower later on as domestic supplies kick in. The higher cost will be the difference in US labor/regs minus cheaper shipping costs. I'd estimate 5-7% higher. But look for quality to go up too. Yes, the one time inflation is worth it to me and a lot of other patriots.
Or, domestic sources will not kick in and stuff will be bought from other nontariffed nations
If the U.S. imposes no tariffs on Chinese-made products and China imposes a huge tariff on U.S.-made products, the end result will likely be a displacement of industry from the U.S. to China.
That's the part of the story that gets the most attention, but there's another side to this. In the scenario I described above, the long-term implication is that -- absent any other changes in the living standards in the two countries or in trade with other countries -- China has effectively made itself a slave colony of the United States. This is because China's work force is basically producing things that they cannot afford to buy themselves.
Does this really serve China's interests? I don't think this even serves OUR interests.
If the other "non tariffed" nations are not blocking our imports then this a better outcome. However, this situation is why across the board tariffs are much better than 'targeted' tariffs.
Duh! Paging Captain Obvious!
Interesting.
It hit me one day when I was in Latvia — where the consumer radio frequencies are slightly DIFFERENT than in the USA and the electricity is 220 volts instead of 110 volts,
that Chinese people are building radios (for example) THAT THEY CANNOT USE themselves.
The electricity plugs and power units are American 110 volt 50 hertz.
The frequencies are wrong.
The labels are in English.
Imagine people building things that they cannot use themselves.
That’s different from a country building its own products and selling the SURPLUS to another country.
They are building things that cannot be used at all in their own country.
1. Consumers -- both individuals and businesses -- want to pay as little as possible for the things they buy.
2. They also want to charge as much as possible for the things they sell ... which, for most people, is their own labor.
I contend that almost every U.S. government policy and piece of legislation in my lifetime has been aimed at dealing with the fundamental problems these two irreconcilable factors cause in our everyday lives. "Free trade" is simply one way to allow people to enjoy the benefits of #1 without paying the cost of #2.
The USA is 60 Hz.
It’s not obvious, dude. Slavery has been a fact of life in almost every human civilization until the last few hundred years. Did you ever wonder why?
People are not so stupid and so greedy as to destroy the USA's industrial base, cause social havoc, lower GDP growth, in order to buy a cheaper poor quality Coolie made consumer goods. IT'S NOT WORTH IT AT ANY PRICE.
The big 'wake up' has started.
If you are just coming to this conclusion then you are really slow. Every economic policy ( trade, taxes et al) over the last 30 years has been aimed at lowering US wages and Americas std of living. The left benefits because this creates socialists and the right gets cheap labor. It is that simple. The Uniparty thing is real....
Thanks for posting.
I did not understand your statement that the purchasing economy is “poorer” by the dollar spent. When I buy something and use it for its intended purpose it continues to be valuable to me and I continue to express that value in dollar amounts.
Thanks!
It’s not like the GOP oligarchy drives Fords and Toyotas ... so why would they care how much a worker at a Ford or Toyota plant earns?
P.S. — America’s standard of living is higher today than it has ever been, so I’m not sure what the hell you are talking about.
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