Posted on 08/25/2015 6:33:42 AM PDT by conservativejoy
The Dow Industrial Average fell by 358 points on Thursday and 531 points on Friday. Yesterday, after plunging more than a thousand points, it recovered to a mere 588 point loss. Economic growth has been slow, and another recession appears to be on the horizon. Could a President Donald Trump get the economy going again? So far he has only laid out the bare bones of his economic plan. But it has the makings of an excellent program.
Balancing Trade
First and foremost, he plans to negotiate balanced trade agreements and even threatens taxes on imports as a way to move trade into balance. If he moves trade toward balance, that would provide a tremendous boost to the economy. In the short term, demand for American made products would immediately increase. In the long-term, manufacturers would build many new American factories that incorporate the latest in production technologies.
These is a simple way to balance trade, explained in a book of which we are co-authors, a single-country-variable-tariff, Balanced Trade (Lexington Books, 2014).
The tariff goes up as a significant chronic trade deficit with a trading partner increases but diminishes as the trade deficit is reduced, disappearing completely when trade is brought close to balance.
Countries with whom trade is close to balance would not be affected. Only large countries with significant chronic surpluses in their trade with us would be affected. The tariff would raise the price of imports from the country to which it is applied but would yield substantial tariff revenues that would more than compensate for the high prices.
Jobs for the Unemployed
An increasing percentage of American workers have left the workforce or have reduced their working hours. Meanwhile, the new jobs that have been created have mostly gone to immigrants, some illegal, some legal.
(Excerpt) Read more at americanthinker.com ...
Mr. Bankruptcy???
Yeah. OK. Wanna buy a bridge?
That’s it? That’s all you got?
Your post should be removed simply for taking up valuable bandwidth.
Hey let's become more like China and have government controlled consumer taxes, a.k.a tariffs.
great business model /sarc
The guy shoveled the money in for years..and utilized the laws when the landscape changed to minimize the debt exposure of the company.
That's what business men do
and seeing the big brass clangy pair he has - I would not be surprised if he bought that debt back at .10 cents on the dollar
If this is true of the population as a whole, then there should already be American companies meeting that market demand. I should be able to walk into a store and see the Chinese made toaster for $20 and the USA made toaster for $35.
Personally, I don't think one in fifty would pay the $35 for a locally made toaster......unless the Federal Government forces the price to that level, which is what Trump and his fans apparently want to happen.
If it becomes cost prohibitive for the overseas seller of the imported item, it then becomes worthwhile to produce the item here.
it does exactly what you want in "bringing businesses back to this country"
Tell that to the consumers who are paying it.
Trump plans to build a wall to keep out illegal immigrants and plans to deport illegal immigrants, which would open many jobs to unemployed Americans. This would increase the opportunities for unemployed and under-employed Americans.
The jobs that most illegals perform are low-skill, minimum wage jobs. Trump also wants to reduce the minimum wage. So it's hard to see exactly how it will improve the conditions for unemployed and under-employed. Companies could do that now my merely raising the salary they're willing to pay.
I like my idea.
How about government leave businesses alone to do what businesses do best? Supply and demand is a proven success. But I do like the balanced trade agreement thing. We shouldn’t give other countries’ corporations preference over our own.
Like the one you keep trying to sell about how solid and correct the Market is????
One big fly in the ointment are the big retailers.
Several years ago I watched a documentary about WalMart and it’s tactics.
WalMart demanded Rubbermaid sell them it’s product at X dollars.
Rubbermaid said it wasn’t possible because the price quoted by WalMart would bankrupt Rubbermaid.
WalMarts response was to call each store and pull all Rubbermaid products from the sales floor immediately.
They also cancelled all undelivered orders.
Weeks later Rubbermaid not only accepted WalMarts offer, but rebated the product then sitting in the stores back rooms.
Rubbermaid ended up laying off most of their US employees and shifting production to China.
When I would go back to work after my home time, I would often pick up OTC meds in North Carolina.
Those loads were usually “drop and hook”, I would drop an empty trailer and pick up a loaded trailer.
One day I arrive to get a load and the load wasn’t ready.
I waited.
The next day, still no load.
The plant finally sent someone to see us.
WalMart had cancelled all orders from the company *nationwide* in order to “negotiate” lower prices.
In the next year or so that OTC company started production offshore in order to meet WalMarts price demands.
WalMart alone has sent millions of jobs overseas.
I completely stopped shopping at WalMart about six years ago.
Sam Walton is dead and his Buy American campaign died with him.
Yes, I will, and do, pay a slightly higher price for Made in the USA products.
What do you think the American economy is? Its businesses. Trumps got more experience and skill in business than all the other candidates put together. Even with bankruptcy in his past I’d rather have Trump in charge than Obama.
More than 40 years ago in my high school and even grade school history classes we studied tariffs, embargoes and how they leveled the playing field, prevented predatory pricing, smoothed the economy but also raised prices and the pros and cons of protectionism.
Basically, some regulation of international trade is a good and proper thing. Trump is right, for too long we have been the fool at the the negotiating table.
My own primary education seems like the turn of the century 8th grade education compared to today. You know, that example 8th grade test with all the difficult questions that nobody today can answer. One example:
http://www.freerepublic.com/focus/news/2895447/posts
I had never thought of that aspect of the WalMart empire and jobs outsourcing. Good info. Thanks.
Obviously you didn’t read the article. Much of it dealt with deregulation and lowering taxes.
Back when young people were educated, not indoctrinated.
I’m a little disappointed that America Thinker somehow equates stock market fortunes with the economy. The market has rocketed higher ever since the Messiah took office - so does that logically mean the last 6 years have been an economic success?
The paper trade market really is a poor reflection of economic reality and instead is a creature of delusion, rigging to distribute from smart trader to dumb ones, and a recipient of a mass of public money.
There is far more value found in private companies for instance.
We don’t really have a good barometer of economic conditions since all statistics are managed heavily by the government, but the public I think knows a good economy from a bad one instinctively.
Yes, has American Thinker gone right off the rails?
The first law signed by George Washington was the Tariff Act. I guess that makes the "indispensable Man" a commie. LOL
I’m surprised as well. I have been hoping for a retailer to open up that provides alternatives to Chinese goods, specifically, European, Canadian and American made goods.
Considering the American made toaster will last 10 times longer I would pay $35 for it. Chinese made goods are great for certain things, like throw away items. But let’s be frank. The Chinese make cheap plastic shite.
That’s just me. And as you said it seems like, sadly, too many rather buy that crap so there is no market for well made Western products.
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