Steel Users Prepare for Higher Prices After Bush Tariff- "We Feel Let Down"

Grand Rapids Press ^ | 3/8/02

[GuillermoX]

This move by Bush was 100% political. He knows the only reason he won Democrat West VA (and the election) was because Willie Jeff refused to impose the tariff. They punished Gore because of it.

[Orangedog]

Possibly, but I think that the sore-losers position on gun control and mining had a hand in him losing that state as well.

[dead]

"We felt we've been let down," he said.

I hear ya pal.

Political payola, out of my pocket, for the corrupt socialist unions.

Thanks, Bush.

[sinkspur]

It is confusing, isn't it?

No tariffs, manufacturers leave.

Tariffs, manufacturers leave.

Looks like they're gonna leave no matter what.

[thmiley]

Recommended reading for those who are confused as to why tariffs are bad:

Basic Economics by Dr. Thomas Sowell

[GuillermoX]

I doubt it, because slick won it in 92 and 96 and dukakis won in 88.

[GuillermoX]

Today, right now, almost 90% of steel consumed in the USA is made domestically.

If you don't think there is manufacturing in the country, maybe you ought to take a second look.

[Willie Green]

Bush's action's are a step in the right direction, but still inadequate due to inconsistancy.

The optimal solution is a relatively low, across-the-board revenue tariff of 10-20% on ALL imported goods from ALL foreign countries.

"Targeted" tariffs have the disadvantage of providing loopholes and, as others will be quick to point out, the potential to hurt other domestic industries.

A prime example is our failed embargo on the importation of Cuban goods. Cuban sugar has been routinely imported to the U.S. through the back door: Canada. Cuban sugar is shipped to Canada where it is dissolved in molasass. "Canadian" molasass is then legally imported to the U.S. where the sugar is easily refined back out. The leftover molasass is then exported back to Canada where the cycle is repeated. Large sugar-users (such as candy makers) are also closing their domestic factories and moving to Canada where they can legally use Cuban sugar, then import it as candy to the U.S.

An across-the-board revenue tariff of 10-20% would circumvent this type of abuse. Additionally, the revenue could be used to offset a major reduction or elimination of the corporate income tax, providing domestic producers a more "level playing field". (A Proposal to Abolish the Corporate Income Tax)

From a historical perspective, a revenue tariff of 10-20% is NOT excessive:

[Free the USA]

Check the Bump List folders for articles related to and descriptions of the above topic(s) or for other topics of interest.

[Toddsterpatriot]

"Suppose that, for whatever reason, Japan decided to subsidize steel very heavily. If no additional tariffs or quotas were imposed, imports of steel into the United States would go up sharply. That would drive down the price of steel in the United States and force steel producers to cut their output, causing unemployment in the steel industry. On the other hand, products made of steel could be purchased more cheaply. Buyers of such products would have extra money to spend on other things. The demand for other items would go up, as would employment in enterprises producing those items. Of course, it would take time to absorb the now unemployed steelworkers. However, to balance that effect, workers in other industries who had been unemployed would find jobs available. There need be no net loss of employment, and there would be a gain in output because workers no longer needed to produce steel would be available to produce something else."

Though the Friedmans admit that unfair trade practices of other nations hurt us, they show that they hurt the offending nations as well. But more to the point, if we retaliate, we just harm ourselves more, not to mention prompting additional retaliation from other nations.

http://www.townhall.com/columnists/davidlimbaugh/dl20020309.shtml

David Limbaugh quoting Milton and Rose Friedman. What do you think Willie? How are they wrong?

[Willie Green]

David Limbaugh quoting Milton and Rose Friedman. What do you think Willie? How are they wrong?

It's a great way to undermine our national security that was unavailable to Tojo.

[Toddsterpatriot]

It's a great way to undermine our national security that was unavailable to Tojo.

Quoting the Friedmans undermines national security?

[LarryLied]

the loss of manufacturing has been due to the so-called free trade agreements.

No. The IRS, the EPA, OSHA and the unions killed manufacturing jobs in America.

I was a steel worker and in the union right out of HS. Kids were making $75 a day in 1971 for a 6 to 7 hour shift. That $75 has the purchasing power of $328.99 today. The industry is notorious for having no gains in productivey to match the increaes in labor costs. The machine I worked on was built in 1915 to help fight the Kaiser. The tax code is to blame for that, USS did better putting the money in the bank than upgrading equipment.

[Willie Green]

Quoting the Friedmans undermines national security?

Feigning ignorance doesn't mask stupidity.

[Toddsterpatriot]

Feigning ignorance doesn't mask stupidity

Speak slowly, I'm a conservative.

Damn that Tojo. Undermining our security by selling us cheap steel. Oh the humanity.

[Willie Green]

Speak slowly, I'm a conservative.

Conservatives are usually better educated.

Do a Web search on "Tojo", "Pearl Harbor" and "scrap steel".

You might actually learn something that'll enable you to avoid making an @$$ out of yourself.

[Toddsterpatriot]

Your first post said...

It's a great way to undermine our national security that was unavailable to Tojo.

Then you told me...

Do a Web search on "Tojo", "Pearl Harbor" and "scrap steel".

So I found this... In July 1940, Roosevelt began his program of economic warfare by embargoing strategic goods. In September, he prohibited exports of iron and scrap steel to Japan. In June 1941, he restricted oil shipments.

So I guess that allowing Japan to sell us cheap steel will lead them to drive all our mills out of business.

Then, they will cut off the supply and bring us to our knees?

I just want to be clear on your point. Is that it?

[Willie Green]

Then, they will cut off the supply and bring us to our knees?

Much the same way OPEC jerks us around on oil.
Yes, that's part of the scenario.