Posted on 11/13/2012 2:00:40 PM PST by DannyTN
You’re right about the things I identified as having not caused the Great Depression. I never said they did. They extended, as opposed to having starting, the depression. Just as what you are proposing would extend the depression that began under Bush.
Never happen. the House is run by a wimpy republican liberal appeaser.
Well, I don’t see how labeling China as a manipulator is going to solve anything. We need to raise interest rates to create incentives for capital creation and production. A more liquid labor market would also be beneficial.
I don't see how your comment applies. We aren't borrowing anything in this scenario. In fact we're either getting Gov't revenues from tariffs immediately. Or we're employing Americans, which means lots of Gov't revenues and less safety net outlays.
We're gladly paying the Chinese Tuesday for a cheap low quality burger today. And it needs to stop now.
You are arguing that I should give you the hamburger today, and that you will pay me later.
We don't need to raise interest rates with 25% unemployment. The incentive for capital creation isn't coming from an increased interest rate, it's coming from an increase market opportunity. And with the unwise trade rules we've implemented, the market opportunity is overseas not here.
But I agree, labeling China as a manipulator is not really the solution. It allows us to impose a tariff, which is a start, but it misses the real issue. The real issue is that we don't need to be pursuing free trade with low wage countries unless we are at full employment.
A tariff is an easy tax to avoid. Didn’t your Chinese handlers explain that to you?
Economics Myth #19, written by an illiterate.
Not on the private sector, on imports. That's not a promise it's a definition of a tariff. Gov't revenues will go up immediately and then as the jobs shift back here, tariff revenues will fall but income taxes will dwarf the tariff revenues.
That's not a promise to pay later. That has an immediate positive impact on our nation's health.
But I see your point. It's all about YOU and all about right now. Nevermind your fellow American or the nation's health. You might have to pay a higher amount today for imports, if the Chinese don't absorb the cost. And today you're not having to currently pay for the unemployed, because the nation is borrowing from China to do that. So yeah, I guess I am promising that you'll benefit in the future by having less debt to pay off by paying more for imports now. But only because the true cost of our unemployed today is buffered by ever expanding government debt. If it wasn't for that buffer, you'd see an immediate improvement from import tariffs.
I disagree. If we raise interest rates, we can finally kill wasteful consumer and government spending. We need increased savings for productive asset creation, and we also need prices and wages to fall.
However, this whole argument is moot. We won’t be able to rely on Chinese imports much longer anyway, due to our ongoing inflation. The unemployment situation will not be solved until we have a real economic recovery.
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*Economic Myth #19 explained
I could go along with revenue raising tariffs, but protective tariffs just hurts overall competitiveness.
Amazing I’ve never heard of anyone wanting to sanction America for manipulating their currency; we do the same thing by debasing our currency (QE 1,2...).
That’s the key point. The federal government cannot pick winners and losers which includes our manufacturing sector. Our manufactures need to operate in a better economic climate through lower taxes, deregulation, and a more liquid labor market.
Protectionism squashes innovation, frugality, and creativity.
Well said.
It is noteworthy that Romney descended to the level of criticizing China for currency manipulation.
I appreciate China making things cheaper for me. That is conservative common sense.
These threads are a hoot. For daring to suggest that “there is no such thing as a free lunch,” one is called selfish and unpatriotic.
Our economic policies are unsustainable, and I doubt more than 5% of Americans realize this.
Wait one minute!
Next you'll claim that a 100% tariff on imported oil will raise the cost of our domestic oil.
Learn some economics, sheesh.
Who buys crude oil by the barrel, anyway? Don’t want to pay the tax, don’t buy oil. Problem solved.
I should have realized that......
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