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Addressing a real problem the wrong way Tarrifs

#25
(This post was last modified: 01-28-2018, 08:38 AM by EricC85.)

(01-26-2018, 09:01 AM)The Real Marty Wrote:
(01-25-2018, 11:18 PM)flsprtsgod Wrote: Japan, South Korea, and Taiwan, for instance, are just fine.


And yet our primary economic adversary has neither free markets nor free trade, so why grant them free access to our market at the same time they undercut us with immoral busuness behaviors? Cheap stuff at the cost of our moral fabric.

First of all, I don't think restricting imports will have any effect at all on the way other countries operate. 
Secondly, the title of this thread, "Addressing a real problem..."  I don't think it's a problem.
Thirdly, I don't want to pay more for everything just to pressure the Chinese into acting more like us. 

Here's what I'm saying to both you and Eric-

Let's look at the actual effect of importing goods from overseas.   Eric's tires, for example.  Suppose I have $1,000 to spend, and I can either buy Eric's domestically produced tires for $1,000, or I can buy imported tires for $800.   What do I do with the other $200?  I might go out to eat, which benefits the restaurant industry, and I might buy a pair of sneakers, which benefits the local shoe store, and I might go to the movies, which benefits the local movie theater.   Eric's tire store might he hurt, but the guy who is selling the imported tires would be helped.   The net result is, I've actually helped the economy by buying those imported tires.  

But let's imagine we do restrict import of tires from countries where we don't like their politics or their lack of regulation.   Would you be willing to allow German or British tires into the US?   What if those German or British companies source their tires from China?  

And what about the substantial proportion of people in the United States who are barely making ends meet?  What if they need new tires?  Do you force them to buy expensive domestically produced tires just to protect Eric's job? 

But back to your idea of using trade policy to change the behavior of other countries.   You really want to in effect tax the US citizenry in an effort to change the way the Chinese do things?  It won't work.   It will only hurt the US economy and further impoverish poor people, both here and abroad.

Saying it's a problem and saying we have to find a solution are two different things. Cheaper foreign goods undercutting American goods is a problem in the sense it's a reality that domestic business has to overcome. That's where it has to end, it's up to those markets to overcome not the states role to level the playing field with Tarrifs.

(01-27-2018, 08:32 AM)jj82284 Wrote:
(01-24-2018, 09:44 AM)EricC85 Wrote: First let's all agree there is a problem with American manufacturing vs the global market with lower quality and cheaper wages. It's impossible for many domestic manufactures to offer the same price as foreign competitors but we have to be honest why if we really want to address the problem. American labor laws, regulations, and EPA requirements factor heavily into domestic manufacturing cost. The other factor is taxes, which has been partially addressed with the new tax law, but that's only one of the four real cost driver's. 

Instead of addressing the other three cost driving factors domestically we've elected to take the short cut and imposse selective Tarrifs. Which in turn is simply selective taxation. Instead of addressing our cost driver's we are now arbitrarily increase the cost of other selective goods. This is an end game loss, it undercuts the free markets ability to control supply and demand and sets a precident that the state should decide when a playing field is to unfair and impose selective taxation. 

You want American manufacturing to compete you say but I'll bet most people would oppose what it would really take to compete. It would take eliminating minimum wage, allowing children as young as 14 to work and rolling back regulations on interstate commerce. 

I'd support all three of those as opposed to Tarrifs. Where does it stop now? Why solar and washer machines? This is crony capitalism and any consrvative or libertarian should voice opposition to it.

Hello again, old friend.   Again, I have to disagree with your PREMISE!  

In the main, as it pertains to the best way to enhance and maintain America's competitiveness in the global Markets, I agree with you.  Moreover the PRESIDENT and the CURRENT ADMINISTRAITON agrees with you.  I humbly ask that you please take yes for an answer.  

This past year was probably the single largest cut in the regulatory state since Wilson/Roosevelt took us down the dark path of the ACTIVE STATE.  
https://www.realclearpolitics.com/video/..._22-1.html

For any 1 new rule proposed by the Executive branch some 20 were eliminated.  And for the first time in our lifetimes we are seeing tangible year to year DECREASES in the size of federal agencies.  

As for labor, the key areas of the Trump Victory were Michigan, Wisconsin, and Pennsylvania.  The first two are already right to work states and the third is trending in that direction.  

It is undeniable that this administrations view of global competitiveness is firmly based in supply side economics, in addition to the massive corporate tax reform that we just passed.  The average corporate tax rate in Europe was 18.5% (places like Ireland as low as 15%) ours was 35% now were dropping to 21%. The largest Tariff on the books was the repatriation tax that has been lowered.  

Massive Deregulation and tax cuts over the entire economy vs. two or three targeted tariffs against Currency Manipulators, Administrative barriers, Subsidized industries, or countries that themselves impose massive Tariffs?

Hey man good to hear from you as well!

I'm not denying the positive changes Trump is making, but I think this one is a mistake and openly oppose it.

You can't use the state to correct economic challenges with out compromising the free markets independence and capitalism is only truly sustainable when it's managed through independent supply and demand.
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RE: Addressing a real problem the wrong way Tarrifs - by EricC85 - 01-27-2018, 08:02 PM



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