Posted on 03/09/2016 6:41:38 AM PST by SeekAndFind
Claude Frederic Bastiat (1801-50) — a French classical liberal theorist, political economist and member of the French National Assembly — wrote an influential essay titled “That Which Is Seen and That Which Is Not Seen.”
He argued that when making laws or economic decisions, it is imperative that we examine not only what is seen but also what is unseen. In other words, examine the whole picture.
Americans who support tariffs on foreign goods could benefit immensely from Bastiat’s admonition. A concrete example was the Bush administration’s 8% to 30% tariffs in 2002 on several types of imported steel. They were levied in an effort to protect jobs in the ailing U.S. steel industry.
Those tariffs caused the domestic price for some steel products, such as hot-rolled steel, to rise by as much as 40%. The clear beneficiaries of the steel tariffs were steel industry executives and stockholders and the 1,700 or so steelworkers whose jobs were saved.
But there is no such thing as a free lunch or a something-for-nothing machine. Whenever there is a benefit of doing something, there is a guaranteed cost.
A study by the Peterson Institute for International Economics, predicted that saving those 1,700 jobs in the steel industry would cost American consumers $800,000 per job, in the form of higher prices. That’s just the monetary side of the picture.
According to a study commissioned by the Consuming Industries Trade Action Coalition, steel-users — such as the U.S. auto industry, its suppliers, heavy construction equipment manufacturers and others — were harmed by higher steel prices.
It is estimated that the steel tariffs caused at least 4,500 job losses in no fewer than 16 states, with more than 19,000 jobs lost in California, 16,000 in Texas and about 10,000 each in Ohio, Michigan and Illinois.
(Excerpt) Read more at investors.com ...
Yes Walter, our founders were very stupid people.
Thanks...
Just remember this — During the time of our founders, we did not have such departments as the EPA, the Dept of Labor, minimum wage, National Labor Relations Board, The Income Tax, capital gains tax, employer health insurance, payroll taxes, etc, etc. etc.
Take all of those away and then we can have those tariffs that our so called “stupid” founders gave but not until.
Thanks.
That shows the brilliance of our constitution - assuming congress plays their part unlike the last few years.
Williams’ representative and all other representatives will get to make their case - Trump cannot do this on his own. And Williams can write articles to convince the people to contact their representative.
But a single person like Trump can get in there and change the discussion. Congress and presidents have been going to long with the “free trade” concept and not stepping back and looking at the big picture. Monetary policy, free trade, jobs, exports, imports, taxes, tariffs, etc.
Maybe tariffs are a bad idea. Maybe tax code needs to change. Maybe all sorts of things. Just like with immigration, Trump is getting some discussions going (along with Bernie in this case).
Almost nothing any of the candidates are saying can be done without congress. We’re safe with Trump, Cruz, Rubio, Kasich, and even Bernie if congress does their job. (Hillary’s another story). Leadership is what’s going to enable change it it gets congress to talk and work for the people - not ideas.
So in other words, we are going to make a bunch of guesses that are unverifiable with any data, that just happen to validate our theory.
Perfect example, tariffs on ethanol forcing us per federal mandate (which Trump supports) to buy corn based ethanol.
He never mentions the reality of currency manipulation.
RE: So in other words, we are going to make a bunch of guesses that are unverifiable with any data, that just happen to validate our theory.
Just remember, the above argument cuts both ways.
B. S.
Got it, assumption that prove the theory=good, Trumps assumptions that challenge the theory=bad.
OBSOLETE CRAP!!! from Walt Williams. Eff free traitors!
Go Trump2016!!!
RE: OBSOLETE CRAP!!!
Economics is obsolete now? When did that happen?
RE: B. S.
Can you elaborate?
RE: Got it, assumption that prove the theory=good, Trumps assumptions that challenge the theory=bad.
I did not say that. What I said is your argument can cut both ways and we need empirical evidence to show it.
Prof. Williams showed empirical evidence to explain why simply saving jobs in one industry creates a whole heap of other problems in other industries.
I actually like to see what happens under a 45% tariff Trump administration.
Great plan Einstein.
Economics is obsolete now? When did that happen?
Economics is whatever Trump says it is.
I wonder if the detractors even read the article or if they are just reacting to an article that is critical of Trump?
Williams is mostly right here in the danger of what Trump is proposing
I don’t need to.
No, that pretty much covers it.
RE: So until we rid ourselves of “the EPA, the Dept of Labor, minimum wage, National Labor Relations Board, The Income Tax, capital gains tax, employer health insurance, payroll taxes” we should let our nation die and devolve into socialism.
Well, Einstein, the above ARE part of the march towards socialism and reasons why it has become untenable to do business here in the United States.
So yes, let’s get rid of all of the above at the Federal level as the 10th amendment tells us to do, and then you’ll see competitiveness and attraction to do business here.
At least he spared us of that myth.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.