Posted on 03/23/2018 8:30:50 AM PDT by WWII_Historian
Why did China and other countries act contrary to the theory of Friedman? Because Friedman's arguments, unfortunately, are correct only when all other variables in economic equations remain unchanged.
Trump had changed the overall conditions of the economic game.
On the one hand, Trump raises taxes for companies outside America (tariffs), and on the other hand, he reduces domestic taxes for companies in America. Let me remind you that thanks to Trump, now corporate income tax in America has been reduced from 35% to 21%. Also, the lion's share of bureaucratic barriers to business development, set by Obama, are canceled by Trump.
Only now has Trump's economic policy become perfectly clear: Trump squeezes out companies from abroad and forces them to relocate to the United States.
The lack of tariff retaliation of the U.S. trade partners proves once again that the capitalist economy is a nonlinear system in which, as is known, the sequence of events is significant. Trump had lowered domestic corporate taxes, and after only three months, he increased external taxes. Imagine what would have happened if the sequence of these events had been in reverse. First, Trump would have raised external taxes (tariffs), and three months later, he would have lowered the internal ones. More precisely, he would try to reduce them, because in the nonlinear system, A + B is not equal to B + A, and it is unlikely that the political situation after a unilateral increase in tariffs by America would be favorable.
(Excerpt) Read more at americanthinker.com ...
Blah blah blah...
Bottom-line is that previous congress’ and administrations have been bleeding America dry with imbalanced unequal trade policy. trump sees that for what it is. If you wanna compete for American dollars in the market place, build it here, pay American workers or build it there, pay higher costs associated with doing so. Same- same in the end on the balance sheet, but the clear winner is the American worker under these policies ( lower individual and corporate taxes, higher cost of bringing offshore non-American made products or material here), and, in the long run, the overall economy and revenues for the entire nation.
America IS NOT the world’s organ donor; sorry globalists.
Because Friedman's arguments, unfortunately, are correct only when all other variables in economic equations remain unchanged
Au contrare. Friedman argued that Country A's free market trade would benefit regardless of Country B's tariffs.
Trump raises taxes for companies outside America (tariffs)
Trump's tariffs raise taxes for AMERICAN CONSUMERS of targeted companies outside America.
On the one hand, Trump raises taxes for companies outside America (tariffs), and on the other hand, he reduces domestic taxes for companies in America. Let me remind you that thanks to Trump, now corporate income tax in America has been reduced from 35% to 21%. Also, the lion's share of bureaucratic barriers to business development, set by Obama, are canceled by Trump. Only now has Trump's economic policy become perfectly clear: Trump squeezes out companies from abroad and forces them to relocate to the United States.
IOW, he's undoing the Demwit policies of job elimination through lower tariffs and higher domestic taxation. Thanks WWII_Historian.
“...Bottom-line is that previous congress’ and administrations have been bleeding America dry with imbalanced unequal trade policy. trump sees that for what it is....”
The swamp critters have been lining their pockets for decades by selling out any “trade balance” that might happen....keeping those donation bucks flowing in.
Trump wants PARITY in trade. Go Trump!!!
Why did China and other countries act contrary to the theory of Friedman? …This is why.
[A communist] is frightening and puzzling to the rest of humanity because a criminally-conditioned mind does not respond the way normal people expect. […] [He] puzzles all those who try to work with him, because he seems irrational and therefore unpredictable. In reality, however, the Marxist man has reduced his thinking to the lowest common denominator of values taken from nature in the raw. He lives exclusively by the jungle law of selfish survival. In terms of these values, he is rational almost to the point of mathematical precision. Through calm or crisis, his responses are consistently elemental and therefore highly predictable. […]Forget about trying to predict what the CPC and even “other countries” who appear to be practicing a “mild” form of socialism will do based on anything moral, or even based in common sense. Everything has to do with achieving the “revolution” by all means possible.
Being without morals, he approaches all problems in a direct, uncomplicated manner. Self-preservation is given as the sole justification for his own behavior, and “selfish motives” or “stupidity” are his only explanations for the behavior of others. With [communists], the signing of 53 treaties and subsequent violation of 51 of them is not hypocrisy, but strategy. The subordination of other men’s minds to the obscuring of truth is not deceit, but a necessary governmental tool. Marxist man has convinced himself that nothing is evil which answers the call of expediency. He has released himself from all the confining restraints of honor and ethics which mankind has previously tried to use as a basis for harmonious human relations. …
— The Naked Communist, Chapter 1
Our founding fathers viewed tariffs as a tax on foreign companies wanting to sell into the American market. And as a voluntary tax on American citizens choosing to purchase foreign made goods instead of American goods.
Works for me.
Tariffs worked great for this country for it’s first 180 years. It’s time to bring them back.
Tariffs worked for a while as a protection for a fledgling country, and worked fine long-term as a revenue source until the disgusting 16th Amendment was allegedly ratified.
We are the greatest economic power in the world and income tax has been forced upon us, so neither reason for tariffs are relevant.
Tariffs protect the American worker. Democrats claim to be on the side of the workers yet give them every disadvantage they can on the international market.
Did you mean raise “prices?”
Tariffs are a government tax that artificially raises prices and government pockets the difference. It is essentially a tax on the American consumer.
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