Posted on 03/15/2018 7:44:21 AM PDT by reaganaut1
Dear President Trump :
It seems you are about to impose tariffs on imported steel and aluminum. You probably know that just about every economist except Peter Navarro thinks this is a terrible idea. But it’s not just us economists. Aside from the steel and aluminum industries, virtually the entire business community opposes the tariffs. The stock market took a major hit. And by the way, when did you stop using the Dow to keep score?
You tweeted that “trade wars are good, and easy to win.” Actually, trade wars are bad, and impossible to win.
Voluntary trade is a win-win proposition, as Adam Smith explained in “The Wealth of Nations.” Impeding voluntary trade is a lose-lose proposition. The key word here is “voluntary.” When foreigners rent rooms in your Washington hotel, both you and they win, right? If not, why would they stay there, and why would you accept them as guests?
Next, let’s consider your “easy to win” quip. It is likely that the U.S. can inflict more pain on its trading partners than they can inflict on us, as we rely less on trade than most countries do. Sure. But merely suffering less than your opponent seems a poor definition of “winning.” Trade wars are a pyrrhic form of competition in which even the victor is left worse off.
You say America loses whenever it runs a trade deficit with any country. But in 2017 the U.S. ran a $571 billion trade deficit with the entire world, which necessarily included deficits with dozens of individual countries. Were they all beating us—and if so, at what? The truth is that America’s huge multilateral trade deficit is made at home.
Here’s why. Nations that invest more than they save must borrow the difference from abroad.
(Excerpt) Read more at wsj.com ...
Evidently.
I think they mean that trade wars are dangerous when greedy, self serving, corrupt politicians who don’t understand business engage in them. This will probably be better.
Absolutely. Start at 10% and increase +2% a year unto the trade deficit is 0.
*****We know what the outcome of “Open Trade” (Free Trade for the US Market only) has been.
And those who foisted it upon us*****
Regulated the crap out of our industries to bring us down.
Why would they do that? They call themselves “Globalists”. They are nothing more than Anti-Christian bigots who want to destroy Western(Christian) Civilization because they want no restrictions placed on whatever perversity they are into from a Christian populace who will disapprove and fight against them.
Trade war?
Good! Let’s roll!
We have 570 billion dollar deficit with enemy China.They have much more to lose than us. Simple question: What is wrong with starting a war you are bound to win
Still pushing the BS huh. Get over it.
I stopped reading at that point.
Go for it, if you think that gross trade/tariff inequalities between equal strength economic countries is a good thing.
On this topic, I am permanently with Trump.
MAGA!
Even Rio Vista can understand that if a Ford Mustang has a 60% tariff in the E.U. but German Cars have 15% duty in the U.S., something is definitely not right.
Building cars in the U.S. is a gimmick only, if say, a BMW built and shipped from Europe is the same price as one built here from imported "parts."
Tariff Temporal Reciprocity is the simple, bulletproof answer.
“just about every economist except Peter Navarro thinks this is a terrible idea.”
... except for those advising almost every other country on Earth.
Irrelevant in this case. The steelworkers union is the largest industrial union in the country, with over 850,000 members. That’s the relevant number.
And I’ll bet a week’s pay that the steelworkers union endorses the Democrat in 2020.
Hey Mr. Blunder, what is your proposal to eliminate the $800B trade deficit?
I used to be totally anti union but fanatic Free Traitor™ Freepers turned me from anti union to ambivalent.
Most union members vote Republican. It is a well know fact their is big rift between the rank and file and leadership.
Good one!
Exactly! Kudos.
NB: A shooting war that kills our soldiers tickles Trotskyist Globalists (Neocons), but a Trade War that gives our nation some parity gives them shivers.
All about money and power - both ways.
Excellent!
Note that the pseudo-conservatives and pseudo-libertarians only use that argument (It’s The Free Market!) when it puts American patriots at a disadvantage. They refuse to acknowledge it here as you done.
Example: Snotty posters on Twitter fascist censorship for the Swamp by proxy: I thought you conservatives liked the free market.
Your point is spot on. Tell Mark Levin.
Yes!
It reveals the Trotskyist Neocon RINOs (the spawn of Irving Kristol).
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