Trump Tariffs and "the aristocracy of pull"
You read it in Atlas Shrugged.. Why are you surprised? (Why are the Trump supporters silent?)
U.S. Department of Commerce Announces Steel and Aluminum Tariff Exclusion Process
https://www.commerce.gov/news/press-r...
Companies can seek tariff exemptions but rules are unclear
http://money.cnn.com/2018/03/19/news/...
Hurt by Trump's tariffs, U.S. companies plead for exemptions
https://www.cbsnews.com/news/hurt-by-...
Who will get the exemptions?
In other news, the US Department of Commerce has not answered news media inquiries about new hiring, but it is expected that the "flood" or "tsunami" of applications for exemptions will require more staff to handle the processes.
U.S. Department of Commerce Announces Steel and Aluminum Tariff Exclusion Process
https://www.commerce.gov/news/press-r...
Companies can seek tariff exemptions but rules are unclear
http://money.cnn.com/2018/03/19/news/...
Hurt by Trump's tariffs, U.S. companies plead for exemptions
https://www.cbsnews.com/news/hurt-by-...
Who will get the exemptions?
In other news, the US Department of Commerce has not answered news media inquiries about new hiring, but it is expected that the "flood" or "tsunami" of applications for exemptions will require more staff to handle the processes.
As I've said in this forum several times, the tariffs have been enacted because other countries involved in trade negotiations have shown little incentive to participate in fair trade. Trump suggested we would be open to dropping all tariffs if the others would do the same. The EU, the Canadians, the Mexicans, and China all assumed Trump was bluffing, so he decided to show them he was not. China was willing to drop some big tariffs, but refused to drop the requirement that U.S. technology firms had to share their intellectual property when doing business with China.
A trade war is not the catastrophe that has been painted by the MSM. There are lots of markets for U.S. goods around the world, but that means U.S. producers have to get off their butts and establish new contracts. In fact, the U.S. is probably unique in the world as being one country that could be self sufficient if necessary, with respect to many goods and technologies.
Europe, Canada, Mexico, and China will all be hurt much worse than the U.S. in an extended trade war. The most laughable comment has to be the one by the EU minister who said they would continue doing business with Iran, no matter what the U.S. wants. Their business with Iran totals about $300B, while their business with the U.S. is over $2T. Giving such a huge trading partner the finger is like playing Russian roulette with all six chambers loaded.
1- That tariffs are bad, eg pull gets exemptions.
We had a go at this in a recent post-
Free Trade, 9 days ago, by coaldigger
https://www.galtsgulchonline.com/post...
2- That Trump supporters are silent when Trump brings in tariffs.
True unfortunately for some.
In the above, many Trump supporters (my guess at who they support) gave some
excuses/rationalizations-
that he did not think it thru, he cannot think, he is impulsive,
he thinks it is an opening gambit to a good negotiated outcome.
There is the strong argument that, for those who want smaller government, there
is no need to think it thru, that the action is a use of powers government should
not have.
There are so many conservatives on this site for whom the argument-
it is bad in itself - is insufficient, so a few more government employees is
ok if the intentions are good.
For those, note, it does not end there. Many are hurt by tariffs who cannot get
an exemption, so sooner or later there are subsidies and buying preferences to
compensate. All this needs rules to be written and supervised, there is job
growth in regulatory agencies, tribunals and the courts.
New jobs- yes, economic growth- no.
Trump is right and should push for zero tariffs on all goods both ways. The chinese and Canadians, etc. have large tariffs already compared with the USA, and should reduce them.
Of course, we dont hear this in the media.
A. If outsiders create problems for me, I will not act against my values or my interests. If they want to harm themselves I will not intervene. I will not punish those who created the problem with an action whereby I will be worse off. Now, there may be some gaming going on, so should I trust my government with the power to join in? I think, not.
Q. "But this has been proven not to work" ?
A. This statement implies it is up to me to stop everyone else being stupid.
When I have got myself and then my government to be rational, I may give some thought to other nations. Some of them are in the massing troops and aiming weapons mode which is a sufficient focus of attention. That is what government should deal with, not with others refusing to buy my stuff.
'Politicians dictators and looters like protectionism' Yes.
Opportunities to act decisively, to make speeches, threats, pound tables, punch the air, have always been irresistible to the political class. Then there are the international conferences, negotiations, summits, and then- ta da .. photo opps with a signed agreement. Rational restraint removes all of that, and you are better off, but WTH, it is other people's money, let us work towards getting pics of big shots shaking hands and waving agreements. (sarc)
It is possible to image tariffs, subsidies and so on designed with a professional level of impartiality. There will still be distortions in markets, and growth in government employ. When the time comes to remove, institutional inertia makes it very difficult to act.
The reasons and facts in favor of unilateral free trade are easy to find at http://fee.org and the Online Library of Liberty.
Those are the same as they were 150 years ago when advocates of free trade argued against tariffs that supported steel mills and coal mines.
This is yet another example of why so-called "conservatives" are not principled advocates of individual rights.
Many conservatives were attracted by the Atlas Shrugged movies without exploring the deeper philosophy behind what was essentially a love story. In the book, when John Galt is captured, and being held at the Wayne-Falkland, he has a tet-a-tet with Mr. Thompson, the head of state. It is the same discussion we are having here.
The Foundation for Economic Education
https://fee.org
The Mises Institute
https://mises.org
The Online Library of Liberty
http://oll.libertyfund.org
Please share how you have determined to drive all the world's politicians (and dictators and looters) out of positions of political power and manipulation?
How about a real solution for the real world? Maybe Trump would like to hear that solution, too.
A free nation with a specific, consciously-chosen and clearly articulated philosophy of reality and rights is its own best defense. And it shines (shone) as a beacon to the world. The 19th century from 1815-1914, was largely one of relative international peace and expanding trade, science, industry, and culture.
Even specific set backs such as the failures of the 1848 revolutions did not halt the momentum to open societies and free trade, again, with the explosion in science, art, technology, and culture that took us from the steamship to the spaceship.
Are you saying that we Texans should invade our neighbors in other states because they have income taxes and we do not. We are sorry for them that they do, but I buy Hatch Chili Peppers from New Mexico anyway.
I agree with having a truly free market. I have worked independently in a free market for my labor for many years and have not taken any jobs with payments from any government. I have never been represented by any union or group. Can you say the same? My service competes on its value to my customers.
But for all of your virtues and mine, the fallacy you are calling on is "No True Scotsman." You live a moral life. Therefore, whatever you suggest as national policy must be morally correct.
I grant that you live a moral life. You are still wrong about tariffs. They are economic losses.
I will not continue a one sided discussion when you repeat the same accusations without any foundation.
There is no fallacy in anything I have said.
You refuse to address reality.
I refuse to waste any more time on your rubbish.
I think this is ad hominem, not No True Scotsman. It's making the argument about the merits of the person. Someone could possibly be a criminal and on welfare or something but still coming up with cogent arguments about gov't waste. It's not about the person.
I'm for letting them enjoy all the benefits that come with those tariffs and the US unilaterally forgoing those benefits.
I asked Mike for a solution. You and Mike say let's keep on doing the same thing. It hasn't worked.
Can you suggest a solution?
Successful negotiation does not happen by giving the other party everything he wants and expecting him to do the same for you. That's setting a good example of how to be a sucker and a loser. This is a business competition and Trump is the first POTUS in the past century with experience doing competitive business. The past administrations have left a bankrupt mess behind them and US "trading partners" have not stood idle while the socialist morons with no business experience handed out keys to the technology warehouse. We shall see if Trump can turn that mess into a profitable venture or not.
What's your solution?
You ask for a solution. The solution is to cease and desist from inflicting harm on others and not to ask all those millions to die for our sake. Practicing rational ethics does not mean compromising with socialist morons. Negotiating a "deal" does not require devious tactics and threats, phony theatrics and misleading others. Being ethical and honest does not make us suckers or losers. I am shocked that you would see it that way and that you would favor bullying and deceit over principle. We need a new paradigm and an end to violence.
As I read this entire discussion spawning from this, it occurs to me we have not defined the problem. We're talking about what "works", but how do we define working. If the goal is for a country to let its citizens free make trades that work for them, which you probably consider a naive/simplistic goal, then not having tariffs "works".
Is your goal higher growth, keeping certain industries domestic, to encourage investment rather than spending, or something else?
I digress, so how can we play on an even trading partnership when our countries are not even to start with.....
I say party, because I think it's very difficult for gov't to keep willing buyers and sellers apart without corruption in some form appearing. It happens with the sex trade, drug trade, and foreign goods/labor. It's hard to keep people from trading things they want to trade.
Lately, NPR (no friend of laissez faire) has been following the woes of hog farmers and soy bean farmers in Iowa who were hit by China's new tariffs. Those were in retailiation for US tariffs on Chinese steel and aluminum. It is a tariff war and wars are economic losses for everyone.