JHW252
5 hours ago edited
If tariffs are so bad why is the rest of the world using them against us ? My father was a successful businessman who owned a small engineering firm. He predicted everything that is happening now back in the 80’s.
“If they sign NAFTA that’s the end of manufacturing in the United States”
“There is no substitute in an economy for the blue collar worker and his paycheck”. //

Blue State Deplorable
6 hours ago
In general, I agree tariffs drive up prices and discourage trade or so I was taught as an Econ major.

But, I think that analysis fails to capture what Trump seeks. This is a gambit. He’s leveraging the power of the American marketplace to encourage other nations to trade fairly. If you wish to export to the US, you’ll eliminate the tariffs you impose on American goods (and subsidies to your manufacturers that allow them to compete unfairly) or suffer the consequences in the form of retaliatory tariffs. Trump’s betting most nations will fold. Whether it works, remains to be seen.

At the same time, Trump is wooing investment from abroad to create jobs and reinvigorate America’s manufacturing base. He’s also seeking to incentivize American manufacturers to produce goods in the US. Why? Well jobs, as I said, but it’s more strategic than that.

Trump sees a dangerous world and with it, declining US power. He believes that a weakened US makes the world more dangerous and less stable. To shore up US power, he’s looking to re-establish American manufacturing and wealth (particularly middle class wealth). Why? So that America can continue to project power to ensure a stable, less dangerous world and wield that power lethally when it becomes necessary.

The tariffs Trump’s imposing are designed to reset America’s trade relationship. They are intended to be short term in nature and predicated on the assumption that most of the world will play ball. As I said above, whether it works remains to be seen. //

Blue State Deplorable anon-lier
4 hours ago
Yes, “unequal tariffs” make those imports more expensive for American consumption, but they remain cheaper than goods manufactured here. Why? For a lot of reasons. Some of it has to do with the cost of producing in a first world economy, some of it has to do with direct and indirect subsidies that importing manufactures benefit from like Chinese slave labor and the like.

Trump’s view of the world is a little different though. His goal is not higher prices or reduced trade, it’s trade on an equal footing, it’s more manufacturing in America, it’s more good paying American jobs. Could we see higher prices? Possibly, but if real wages go up, it doesn’t necessarily matter.

It’s a complex issue, but I do heed Thomas Sowell’s warning (see above). Make no mistake, Trump’s gambling. It could pay off handsomely, but there could also be severe consequences. //

Outerlimitsfan
6 hours ago edited
Meanwhile Rand Paul is Saying tariffs and protectionist policy was a political disaster for McKinley in 1890. Yes, McKinley(a Congressman) and his party lost badly soon after.

Rand failed to mention though that McKinley later became President in 1896 and reelection for a second term. Rapid economic growth occurred under his protectionist/tariff policies as President. Highest tariffs in U.S. history occurred in late 1800s/early 1900s.

Also Alexander Hamilton and many of the founders supported tariffs and protectionism. //

surfcat50 Outerlimitsfan
6 hours ago
People forget, or may not know, that prior to the constitutional amendment bringing the income tax to life in the US in 1913 (using the same lies then that only “the rich” would pay it), the federal government was funded entirely through duties, excise taxes and . . . TARIFFS.