Why All Protectionists Are Essentially Luddites

Foundation for Economic Education ^ | January 24, 2017 | Donald J. Boudreaux

[1rudeboy]

It’s really weird, how I can observe that U.S. corporate tax policy is effed-up, and you change the subject. Coming full circle to comment #57. It just took a little longer than usual, this time.

[JPJones]

“Free-traders” do not argue that free trade will lead to the proletariat rising-up against the bourgeois, as Marx did...”

Lol, I know they don’t ARGUE that, but that doesn’t mean Free Trade works.

Just look where we are today: a divided nation, cultural decay, stagnant wages, depleted industry, and main st vs. wall st.

“(ahem, in the selection of his you quoted—and do not understand) “

Compare that what Marx said would happen:

“But, in general, the protective system of our day is conservative, while the free trade system is destructive. It breaks up OLD nationalities and pushes the ANTAGONISM of the proletariat and the bourgeoisie to the extreme point.”

Seems I understand it much better than you. And keep in mind I used to be a ‘free trader’, supported NAFTA and made fun of Ross Perot.

Not anymore.

It’s a neat trick: agree with someone (Marx), while accusing those who disagree with you of being Marxists.

Correction: Unwitting Marxists.

” I blame public schooling.”

So do I.

[itsahoot]

Wilson signed the bill which included the income tax in October, 1913. The top rate being an exorbitant 1%.

I think the discussion included the tax rate and no one could conceive of the rate ever exceeding 2%.

[cynwoody]

If you’ve been trained to do a job for 25 years, settled in an area and have a family, it isn’t going to be easy for you to relocate, and it may not be cheap or quick to retrain you to a new skill. Further, that new skill—which will be in the areas which would have comparative advantage going forward—may not be immediately evident.

Those same effects arise from competition within the country as well from abroad. But, in both cases, the competitors would not be successful unless they were providing value.

Overall wealth increases, but there are losers as well as winners. E.g., a million people get cheaper cars, but a thousand need to get new jobs.

[Sirius Lee]

No, I personally don't believe protectionists are Luddites, unlike the author, but I do believe protectionist policies will hurt small businesses and consumers by making imports more expensive.

Do massive taxes to feed and house the unemployed make your taxes more expensive?

[JPJones]

“I don’t drive around the U.S. and see lots of slaughterhouses in operation that used to be factories and office buildings, either. That’s my point.”

Lol, I know, neither do I, which makes the stat that it is a MAJOR factor of American production very scary, (i.e. everything else must be pretty bad.) That was my point.

“3. A Boeing passenger jet manufactured in Everett, Washington is worth more than the entire Wal-Mart store, all of the infrastructure around it and underneath it, and the land on which it sits.”

Interesting stats. Gives some cool perspective.

Yet we’re still running yuge trade deficits.

[central_va]

Will wonders never cease: a Free Traitor™ admitting that there are winners and losers with offshoring and importing back duty free.

[JPJones]

“Reagan’s actions didn’t match his rhetoric”

That was my point to rudeboy.

I remember the tariff on Japanese motorcyles.

It was temporary, it worked like a charm, and saved Harley-Davidson from total destruction.

[1rudeboy]

The first sentence of your reply is a non sequitur. I didn't bother reading the rest.

How do you tell a communist? Well, it's someone who reads Marx and Lenin. And how do you tell an anti-Communist? It's someone who understands Marx and Lenin.
--Ronald Reagan

[1rudeboy]

So, how high do you want to raise my taxes now in order to keep from raising my taxes later?

[central_va]

A 20% tariff should do the trick.

[JPJones]

“And yes, the Democrat majority in Congress during the 1980’s was stridently protectionist.”

I remember a front page headline on the Boston Globe when Reagan wanted to bailout Chrysler:

” DEMS: Auto industry is a dying industry, Let It Die!”

[1rudeboy]

And my point was to you that Barack Obama “saved” the domestic tire industry by raising tariffs on Chinese tires. Why are you not throwing rose petals at his feet?

[1rudeboy]

[the sound you hear is crony capitalists cheering]

[JPJones]

“How do you tell a communist? Well, it’s someone who reads Marx and Lenin. And how do you tell an anti-Communist? It’s someone who understands Marx and Lenin.”
—Ronald Reagan

And your understanding of Marx when he states “I vote in favor of Free Trade....”

...is that he is NOT a Free Trader?

What was that you said about public schools....?

[central_va]

Dingbat it’s the crony capitalists who are against a tariff. What a moron you are.

[Sirius Lee]

So, how high do you want to raise my taxes now in order to keep from raising my taxes later?

Buy American and you won't have to pay more taxes.

[1rudeboy]

Pretty amazing, that, he states "In this revolutionary sense alone . . . ." You must be wondering what the word "alone," means. Or possibly the word "revolutionary." It's hard to tell, English might be your second language.

[cynwoody]

That is only 40% of the 1977 level.

Manufacturing employment is way down, having peaked just before 1980, despite a rising population, as you point out. However, manufacturing output is way up. A similar phenomenon has occurred in agriculture — employment way, way down, output way, way up. In both cases, we are seeing the effect of automation.

Certainly automation plays a major role, but all of those cars, trucks, tractors, electronic devices, appliances and garments coming here across borders and oceans didn't manufacture themselves in totally automatic factories.

Here is a Tesla factory. The workers are all dressed in red and black, including the human (hint: he is about where Ohio would be on a US map):

In China, automation is coming on strong, as wages rise. Example:

Dongguan — a city near Hong Kong that’s basically the manufacturing capital of the world — recently launched their first automated factory.

The Changying Precision Technology Company manufactures parts for mobile phones. It has 60 robot arms that work on 10 production lines that run 24 hours a day, 7 days a week. Each production line has 3 human workers who monitor the robots.

Before these new robots arrived, the factory needed 650 human workers to be able to operate. Now it just needs 30.

Since this factory laid off 95% of its workers, and handed over the task of manufacturing to the machines, its defect rate has dropped by 400%, and its overall output has nearly tripled.

More production, fewer people.

[JPJones]

“And my point was to you that Barack Obama “saved” the domestic tire industry by raising tariffs on Chinese tires. Why are you not throwing rose petals at his feet?”

A broken clock is right twice a day.