Is protectionism America's future? Pat Buchanan praises Bush's barriers

WorldNetDaily.com ^ | Monday, July 29, 2002 | Pat Buchanan

[Torie]

I bashed Bush for the steel quotas and farm bill as soon as it became public. The steel quota in particular was ludicrous, and will backfire. I was and remain off the reservation on this one.

[skeeter]

Queue the 'bottom line uber alles' folks... tell us why economic patriotism is a baaaad thing.

[Willie Green]

Special Ping to ya, amigo.

Thank you very much, Mr. Huang.

I gotta admit, I am quite disappointed in Pat for being so soft on Dubya. The temporary, targeted tariffs imposed by Dubya are merely a band-aid placed on a major, traumatic wound. Long term, Dubya remains committed to tightening the tourniquet and amputating an industry that is vital to our national security. As soon as he implemented these ineffective, targeted tariffs, Dubya began the process of undermining what limited benefits they may have by issuing a lengthy list of "special exemptions" and dictating to domestic industry that they must "restructure" and REDUCE competition.

Targeted tariffs DO NOT work. They corruptly benefit only a few, while placing a burden on other domestic businesses. The more desirable and equitable solution to this crisis is to impose a broader-based, yet lower rate, revenue tariff on ALL imported goods. The revenues generated from a uniform, low-rate tariff of perhaps 10% placed on ALL imports could be used to offset other forms of taxation and regulation imposed on domestic industry, resulting in a more level and competitive playing field.

[sphinx]

But trade deficits of 5 percent of GDP cannot continue indefinitely. Eventually, a currency begins to fall, as has been happening to the dollar, and the price of the foreign goods on which America now depends rises. And as prices rise, Americans buy less from abroad.

This is called self-correction. Markets work.

Yet, the president is now being bashed for the most sensible decision he has taken to put America first: the imposition of tariffs on foreign steel being dumped into the United States, which had put 30 U.S. steel companies in bankruptcy.

I had a conversation this weekend with my friend who runs a small metal stamping company. Steel in a variety of rolls and sheets is his basic raw material. Thanks to steel tariffs, my friend has seen his materials cost jump 40%. Many of his customers cannot or will not take a price increase. Basically, his larger customers (think automakers) have told him they can import parts cheaply from Mexico and China. Others are import-impacted at the finished product level, are struggling to survive themselves, and cannot take a big increase in domestic steel prices.

By imposing tariffs on steel but not steel parts and finished products, Bush has shafted everyone downsteam of the steelmakers. I would bet significantly more jobs are being lost than gained by this.

Perhaps I should mention that my friend has laid off 25% of his employees. He is a rock-ribbed Republican who is rethinking his political support.

[Willie Green]

See my post at #4. LOL

To: JohnHuang2; CheneyChick; vikingchick; Victoria Delsoul; WIMom; one_particular_harbour; kmiller1k; ..
Pat Buchanan praises Bush's barriers
What a fun "strange bedfellows" thread this will be!
4 posted on 7/28/02 11:56 PM Pacific by Sabertooth

What? Laughing and smirking because you post under different screen names?

[maestro]

Is protectionism America's future?

IMPOSSIBLE............IMPOSSIBLE..............IMPOSSIBLE.............unless,

We totally isolate/limit/fire-wall our mixed banking role in the International (U.N.) Banking Systems and return to Sovereign/National Banks!!!

Bottom ($$$$$$) Line Difference (warefare) between Capitalism/Fascism's National-Socialism AND Marxism's Internationale Banking Communist/Socialism.

WW-III........now?

Bay of Pigs?

Ocean of Pigs?

IMHO

[Anti-Christ?]

[Tauzero]

Indeed.

And yes, protectionism is making a comeback. Always does, in big enough bear markets.

[Tauzero]

Sowell is da man when it comes to economics. Trade barriers however serve useful purposes other than economics.

[Alamo-Girl]

Thanks for the heads up!

[Michael2001]

I criticized Bush when he first did this. But I'm starting to change my mind, I think Buchanan may be right on this one

[Joe Hadenuf]

Every action Bush has taken has pissed off one segment of "base". That tells me that he has no "base". He has a cluster of icebergs the he is has to jump from one to the other just to keep afloat. It says a lot about the "conservative movement" and who gets to define it.

That's a strange analogy, as icebergs don't require help to stay afloat and this says nothing about the conservative movement. There is no conservative movement, yet. Those icebergs you speak of, are slowly disolving and will eventually reform into much larger icebergs. This is clear.

[afuturegovernor]

This shows how hard govering can be. Do one thing and the Steve Forbes and Jack Kemp free trade wing of the party thinks they have been sold out. Do the opposite and Buchanan protectionist wing thinks they have been sold out. Either way part of the base is angry with you on that issue.

[Willie Green]

Do one thing and the Steve Forbes and Jack Kemp free trade wing of the party thinks they have been sold out.

Jack Kemp was instrumental in obliterating our borders to facilitate mass-admittance of illegal immigrants, including the 9/11 Arab hijackers. He should be tried for treason on grounds of willfull negligence.

[Joe Hadenuf]

I agree, Jack Kemp is a sell out traitor. Will never forget that a$$hole.

[Viva Le Dissention]

Tariffs and quotas are just bad for Americans, though. When there is a tariff, everyone loses.

Let's say the world market price for widgets is $5. Supply meets demand and everyone is happy. But, American widget makers are claiming they just can't compete with foreign widget makers. "That's not fair," they cry. "They can do it better and more cheaply than us. We need the government to do something." And so the government always wants to help the widget industry, it puts a $.50 tariff on imported widgets.

So now the price of widgets has risen due to the tariff, but the number of people wanting to buy the widgets has decreased, because of the higher prices. Uh, oh--there is a deadweight loss to society--a loss created by the tariff not recouped by government or industry.

But protectionists cheer the government-sponsored socialism. "Yay, the widget industry in America is saved! Thanks Big Government!" But saavy consumers know better: they bear the loss associated with the tariff, the dead weight loss is felt on their shoulders.

I remember a few folks mentioned dumping: dumping is illegal. Japan did it in the 80s with steel and got slapped with a bunch of restrictions by the WTO.

Bush is moving us in the wrong direction with his protectionism act. It hurts consumers, and there is no way around that.

[hchutch]

I came down on the side of imposing the tariffs as well. Not only on the fact that we need the steel to build the guns, ships, planes, and tanks we need for national defense, but because there's a LOT of "dumping" going on as well.

This was an easy call, IMHO.

[Shermy]

Trade barriers for the purpose of fighting capitalist competition are socialist by their very nature and anyone who supports them is a bleeding red socialist

Just what is your definition of "socialism?" I suppose barriers put up by Japan in the 20th Century must have made it communist in your eyes!

[blackie]

GWB Is The Man !!

Freedom Is Worth Fighting For !!

Molon Labe !!

[jaime1959]

Blaming the Depression on Smoot-Hawley is one of the biggest lies of all time. The Fed's failure to pump enough money into the system was the primary cause of the Great Depression.