A little Ditty on Tariffs....

[bostonangler]

Yup it's been tried.... I would think a business man would get it, don't you?

 

 

In March 2002, President George W. Bush imposed a 30% tariff on Chinese steel. The results were chaotic. In a report put out by Consuming Industries Trade Action Coalition in February of that year, the coalition found the tariffs against China boosted the overall prices of steel and cost the U.S. 200,000 jobs in businesses that buy steel, representing $4 billion.

In another recent situation, in September 2009, President Obama imposed a three-year tariff on car tires from China. Chinese imports went down, but the tires were simply sourced from other countries, the LA Times noted. According to the Peterson Institute for International Economics, 1,200 tire jobs were saved in the U.S., but through costs passed along to American consumers, 2,500 jobs were lost indirectly.

In Bush’s case, seven months after the tariffs were imposed more American jobs had been lost than Americans employed by domestic steel producers. Writing about the trickling effect of trying to help a certain domestic industry, CITAC noted: “In making policy for the revitalization of manufacturing, including the steel industry, our conclusions suggest that the effects across the full industrial spectrum should be considered.”

It is not clear if this full industrial spectrum has been considered by the Trump administration, which said it was considering implementing a 20% tariff on goods imported to the US from Mexico—a move that would require the US leaving NAFTA. “By doing it that way we can do $10 billion a year and easily pay for the wall just through that mechanism alone,” Trump Press Secretary Sean Spicer said Thursday.

In Trump’s view, the wall will pay for itself by ultimately saving money the US would spend on finding and deporting undocumented immigrants. “I think we are going to save additional money that we would have had to spend on tracking down illegal immigrants and on immigration. So it’s actually a huge win for the American taxpayer,” Spicer said.

Numerous studies show this would not alleviate those costs. As a series of studies from economists like Giovanni Peri, a researcher at U.C. Davis, indicate, these workers take undesirable jobs Americans don’t want, and allow Americans to take jobs with higher skill levels and complexity. As a Wisconsin farmer told Politico of the Mexicans who milk cows, “the white boys won’t do that kind of work.” In the 2000s, immigrant work caused no increases in the poverty rate in any state.

Barclay’s, which performed an analysis on the 20% tariff option, found core inflation rates could go up a full percentage point per year, and a GDP growth reduction of up to 1.5 percentage points. The analysis also pointed to the potential for similar issues faced by Japan after it implemented a VAT in 2014 and saw GDP decline of 4 percentage points.

Trump may increasingly find himself between a rock and a hard place. Either he focuses on paying for one of his signature campaign issues, a widely unpopular border wall that will cost $120 per person—most Texans don’t support it, only 26% think it’s important, according to Gallup—or make policy for the “revitalization of manufacturing” that considers “effects across the full industrial spectrum,” as CITAC recommended, and keeps prices down for consumers. If the 20% tariffs are implemented, those prices will likely get passed to ordinary Americans, sending them the bill for the wall, not Mexico.

[Jaxinjersey]

Freedom isn't free.  The cost of a properly functioning Republic isn't free... nor net neutral.  This includes actions to "correct" economic policies and induce future beneficial results.  In other words, there is always a trade-off in "doing business".  To continue along a global pathway, or continue to place perpetual "band aids" on corrupt policies, that enrich others at the cost of our Republic's values... has to end somewhere, sometime.  Austerity measures are not always popular... but usually necessary.  Personally, and professionally, I've already taken the hit... and will continue to sacrifice along those lines in the spirit of taking back and healing of our Republic.  As free-enterprise and capitalism dictates... some will benefit, and some will fail.  The overall net benefit of the Republic's values, not just its economy, is the ultimate goal... the pursuit of happiness.

[bostonangler]

1 minute ago, Jaxinjersey said:

Freedom isn't free.  The cost of a properly functioning Republic isn't free... nor net neutral.  This includes actions to "correct" economic policies and induce future beneficial results.  In other words, there is always a trade-off in "doing business".  To continue along a global pathway, or continue to place perpetual "band aids" on corrupt policies, that enrich others at the cost of our Republic's values... has to end somewhere, sometime.  Austerity measures are not always popular... but usually necessary.  Personally, and professionally, I've already taken the hit... and will continue to sacrifice along those lines in the spirit of taking back and healing of our Republic.  As free-enterprise and capitalism dictates... some will benefit, and some will fail.  The overall net benefit of the Republic's values, not just its economy, is the ultimate goal... the pursuit of happiness.

Jax, I enjoy your comments very much and agree... I just don't think most people see past the glorious patriot headlines and understand what the outcome will be for them. But I do agree it is on them. I post news articles only in an attempt to educate. Not to make their decisions...

 

B/A

[Jaxinjersey]

3 minutes ago, bostonangler said:

Jax, I enjoy your comments very much and agree... I just don't think most people see past the glorious patriot headlines and understand what the outcome will be for them. But I do agree it is on them. I post news articles only in an attempt to educate. Not to make their decisions...

 

B/A

I noticed that... so no neg from me... this time! LOL  But DO feel free to advocate my perspective further if you agree... such objective thoughts could actually "educate" people a bit more than just posting articles!  It's what separates us from the "Umbertinos" of the internet!

[bostonangler]

[divemaster5734]

7 hours ago, bostonangler said:

 

In March 2002, President George W. Bush imposed a 30% tariff on Chinese steel. The results were chaotic. In a report put out by Consuming Industries Trade Action Coalition in February of that year, the coalition found the tariffs against China boosted the overall prices of steel and cost the U.S. 200,000 jobs in businesses that buy steel, representing $4 billion.

In another recent situation, in September 2009, President Obama imposed a three-year tariff on car tires from China. Chinese imports went down, but the tires were simply sourced from other countries, the LA Times noted. According to the Peterson Institute for International Economics, 1,200 tire jobs were saved in the U.S., but through costs passed along to American consumers, 2,500 jobs were lost indirectly.

In Bush’s case, seven months after the tariffs were imposed more American jobs had been lost than Americans employed by domestic steel producers. Writing about the trickling effect of trying to help a certain domestic industry, CITAC noted: “In making policy for the revitalization of manufacturing, including the steel industry, our conclusions suggest that the effects across the full industrial spectrum should be considered.”

Oops, ya missed something important;

Bush's tariff was designed to fail.

It was naive at best, a malicious and traitorous act to undermine America at worst.

Targeting individual countries in a tariff is as ignorant, biased, and prejudiced as one can be.

Talk about "The Village Idiot", he certainly proved it.

What Trump is going to do is NOT  discriminate against ANYONE solely because of their region or economic situation.

What he WILL do is RECIPROCATE their trade practices, as well as make sure the American Worker benefits in all future deals.

You have mentioned you are doing extremely well, I don't know what you are contracting, perhaps you are just another government contractor, and that would explain your hatred for Trump, because you are about to be forced to actually work for a living.

As for me, I would much rather watch my neighbors succeed than have to endure more over the top demanding Asians coming to Seattle with a pocket full of American dollars trying to buy every building they can.

No matter what, there will be pain. If you choose to focus on the turmoil an oppressive totalitarian anti-freedom country like China is experiencing, and you chose to ignore the good it will do, not only for America, but inversely, undermining the murderous China government, thereby possibly helping inspire their people to make a stand for themselves by simple example, well then, you go one pouring out your heart and crying for a country whose leaders hate us.

Maybe you should sit this one out, as you may be a little too polarized for genuine discussion, or, perhaps lacking necessary business acumen.

A discussion is wonderful, but claiming bush's incompetent 3rd grade attempt to "play like a big boy" was honest or competent is like saying the answer to 2+2 =blue.

Without unilateral enforcement globally anything else is painfully wrong.

While Asiatic countries are some of the biggest offenders, and therefore the immediate target, the only adult response is to institute and ENFORCE a policy which applies to EVERY SINGLE NATION. That way we make sure no one else tries to step in to take their place.

Of coarse bush's EO failed, it was supposed to.

It was designed to demonstrate the futility of "protectionism".

Bush has always been a globalist, in the EO he tried to pretend he was helping America, unfortunately, only the truly ignorant were tricked.

Please, open your eyes, drop the hate, stop searching for ANY excuse to demean, detract, and divide.

You might just learn something.

 

[BJinMontreal]

... ummmm ....  Wait .... so two

plus two does not equal blue !?? 

Oh man, I'm gonna have to redo those year end numbers!!!

 

[BJinMontreal]

DM, always enjoy your posts and reading your view on the world at large!!

 I always learn something I hadn't quite thought thoroughly through.

 

[divemaster5734]

20 hours ago, BJinMontreal said:

... ummmm ....  Wait .... so two

plus two does not equal blue !?? 

Oh man, I'm gonna have to redo those year end numbers!!!

 

Rumor has it if the sum of line 420 is yellow, which is then deducted from the amount totaled in line 740 is rose, then your return will be greater than pink elephant, but don't celebrate yet, because you may still have, per Learner Rule Additions, the emergency aide UGH increase , (Underprivileged Government Horror, the grant fund set up for all those poor retired government workers who have somehow managed to retire and have less than five vacation homes), then the total money refunded can not be more than pink elephant, so all excess return funds will be withheld in order to be sure all career bureaucrats can live a lifestyle befitting their elevated status. 

 

And if that isn't enough to make ya want to puke, not sure what will....