Skip to comments.Free Trade and the Steel Industry
Posted on 10/09/2011 1:37:52 PM PDT by Toddsterpatriot
Milton Friedman shows the stupidity of tariffs.
--proving America has no problem with exports, it's the imports we need more of.
If only we were allowed to import as many jobs, dollars, and techs as we exported then we'd be so much better off. We need to dismantle our tariff barriers to allow these imports again even if we have to put up with crying protectionists complaining about all the job and dollar dumping that may bankrupt all our domestic producers. Let's face it, these days Americans consume much more dollars, technology and jobs than can be produced locally.
You made the claim, you go look it up.
Be sure to ping me when you discover your error.
But that’s not the situation now. All you’ll do is have tariffs plus everything else, which will destroy America on the international market.
Want to know why nobody wants to locate their business in America? 30 percent corporate tax. Nobody else is that high.
America needs to kill the public sector unions, bring corporate taxes down, cut all the red tape crap that prevents businesses from starting up in America, etc.
Tariffs simply tell the world one thing. America can no longer compete in the global marketplace. Instead they can only play on home turf.
What it will mean is that the average customer will see greater inflation, greater waste, and the standard of living for Americans will go down.
Then what do you do? Dropping the tariffs means that you’re exposing inefficient businesses to market forces again. Raise them even higher?
Toddster is back. Man were you wrong about gold...
End the Fed
Here you are. Does this help your argument?
Can you be more specific what I was wrong about?
Thanks. Nearly 2 million.
But for Dennis, that’s not his largest error to date.
If only we had actual free trade... Steel imports have tariffs applied. We have highly managed trade subject to tariffs, quotas, set-asides, and protectionist policies.
How's it working out so far?
Yes, because the best way to bring jobs home is to tax US consumers!
the entire concept of free trade is only for the naive. Every country wants whats best for it and its economy. So here we are giving our stuff away.
Its working so well that we don’t have a steel industry. The economy of China will surpass ours within a few years. The wealth is being created elsewhere and is not coming here.
You need to learn your history. We had income tax and corporate taxes well before WWII, which preceded the interstate highway system (which was built with gas taxes).
When America was the economic powerhouse in the 50s, it wasn't because we were financed by tariffs (we had Social Security, income taxes, and capital gains taxes well-established by that time). It was because we were the only real economic region that was not destroyed by WWII. Europe was leveled - as was most of Asia. We had our capacity intact - and that fueled most of our economic rise.
As soon as those other nations got back on their manufacturing feet, they started competing and doing well - Japan and Germany with cars, for example.
Giving? How's that?
Its working so well that we dont have a steel industry.
We don't produce any steel here? Are you sure?
Really? Source, please... Because you're wrong. Most Mercedes and Audi cars, most of the original Buicks and Fords and Volkswagens, were imported to China - and there was a tariff applied (just like we apply tariffs to imported cars).
Now those companies sell enough cars there it's worthwhile to BUILD them there, and avoid the tariffs and the issues with corporate income tax. For much the same reason BMW, Mercedes, Honda and Toyota build cars here - avoid the tariffs.
Yes we produce so much steel that California is buying bridges from China.
But perhaps I’m wrong and you’ll tell me our steel production is higher now than ever before.
You’re right they want our factories there, so they can steal the intellectual property.
On another note look how the number of Japanese imports start to fall around 1994&1995. Could it be because the Japanese are building cars here in the US and supplying Americans with good paying NON UNION jobs.
One more thing The US steel industry is not dead but transformed into smaller specialty or botique areas. The foreigners do the bulk dirty dangerous work.
What are we giving away? Seriously - I'm curious what we're giving away.
Its working so well that we dont have a steel industry.
Is that because of the importing of Chinese and Korean steel (there's a lot of 20%, 30%, 45%, 50% tariffs applied) doesn't have enough tariff applied? Or is it because the costs of refining steel here has gotten so out of hand that you simply cannot make a profit doing it here?
Remember, on top of the EPA riding roughshod over your business, and the unions forcing crushing wages and benefits, you'll also get to pay 35% income tax on your corporate earnings - and another 15% or more capital gains tax when those profits are paid out.
Maybe the reason most of the steel industry has left the US is not because of cheap costs for imported product (when you add a 45% tariff that's a pretty stiff hit), but because our own Government and system has made it too expensive to actually build here.
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