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Yes, Ben Shapiro is Still Wrong on Tariffs. Here’s Why
American Greatness ^ | March 19, 2018 | Spencer P Morrison

Posted on 03/19/2018 12:50:03 PM PDT by Thalean

Shapiro claims that I favor “total state control of the economy” because I think it is possible to “simply pick the best industries and subsidize them.” Apparently, tariffs are Communism, and I am Stalin. . . Shapiro has it entirely backward: tariffs are the form of taxation most consistent with small government. . .

tariffs are antithetical to big government because they preclude socialism. How? Tariffs make imports expensive. This encourages domestic production and discourages offshoring—thereby boosting demand for American labor. Basically, tariffs create stable jobs and increase wages for American workers...

The key to solving this puzzle is recognizing that employed Americans are less likely to elect socialist governments because they will not benefit from the policies. The converse is likewise true.

Consider what happened in America’s Rustbelt. The region used to be a Republican stronghold. However, when millions of people began losing their jobs because of offshoring—caused by asymmetrical trade—the region turned blue. People voted for socialism to insulate themselves from the ravages of economic globalization. Socialism was a direct, and sadly iatrogenic response to free trade. It did more harm than good: Democratic governments raised taxes and imposed regulations that further crippled American industry. They made a bad problem worse.

Shapiro must answer this question: Were the alleged gains from freer trade with Communist China worth the proliferation of socialism in America? Was saving a few dollars on your $1,000 computer worth decades of Democratic governments, which damaged the U.S. economy with higher taxes and more regulations? I doubt it. We cannot limit our discussion of tariffs to their economic consequences—political reality forces Shapiro to choose: tariffs or socialism? What kind of “big government” does he want?

(Excerpt) Read more at amgreatness.com ...


TOPICS: Business/Economy; Politics
KEYWORDS: benshapiro; donaldtrump; economics; educateyourself; freetrade; tariffs; trump; trumptariffs
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While I think free trade is something to aspire to, this article makes the very strong point that reality is messy, and what works in theory doesn't always work in practice.

The case-in-point is China: we let China sell stuff in America, but we can't sell stuff there. This basically guarantees that Chinese companies will be more profitable than American ones, and can therefore lower their prices to out-compete our boys.

This is because manufacturing is subject to "increasing returns", meaning that the bigger it gets, the cheaper each product gets. This is why Trump's right on tariffs in general. Economics is one thing, business & politics are different animals.

1 posted on 03/19/2018 12:50:03 PM PDT by Thalean
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To: Thalean

Ben is smarter than me. I like him a little bit, but sometimes he is just plain wrong and he needs a humblin’.

Come on Ben, grow up.


2 posted on 03/19/2018 12:52:39 PM PDT by dforest (Never let a Muslim cut your hair.)
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To: Thalean

If there was a link to the Ben Shapiro article to which this article is a response, I could decide for myself what I think about Ben’s arguments.


3 posted on 03/19/2018 12:55:56 PM PDT by Tax-chick (I have the easiest life in the history of the world.)
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To: Thalean

I’m with Trump on tariffs.


4 posted on 03/19/2018 12:56:16 PM PDT by Architect of Avalon
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To: Thalean

“Basically, tariffs create stable jobs and increase wages for American workers...”

That’s why tariffs are the bane of global socialism: it PREVENTS The Race to The Bottom.

Karl Marx was very much in favor of Free Trade.


5 posted on 03/19/2018 12:58:12 PM PDT by JPJones (More tariffs, less income tax.)
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To: Thalean

Ben is wrong in this. The founders utterly disagreed with his take.


6 posted on 03/19/2018 1:00:43 PM PDT by DesertRhino (Dog is man's best friend, and moslems hate dogs. Add that up. ....)
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To: Thalean

We have thousands of tariffs already in place on many different products. A few more are needed, and getting screwed by other countries on trade has to end now.


7 posted on 03/19/2018 1:02:22 PM PDT by dainbramaged (Get out of my country now)
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To: Thalean

I have to laugh how “staunch Constitutional Conservatives” are busy defending a managed trade system created by UK Socialists, Stalinist Communist sympathizers and US “New Dealers”

These dogmas about “Free Trade” have no base in current economic reality.

We do not have “Free Trade, we have “Managed Trade” and since the 1940s it has been purposely managed to the US’s detriment.

In 1944 at Breeton Woods the US, Britain 42 other allied nations had a conference to set up a post WW2 international financial and trade system. The Conference, run by British and US socialists, communist sympathizes and “New Dealers”, crafted a new financial/trade system for the post war world. One of their theories was the war was caused by wild swings in trade and international finance.They crafted a system that was designed to smooth out those swings and promote global stability.

The theory was, that the US Economy was so big, diverse and strong, it could adsorb other countries finical/unemployment woes thus help prompt peace and stability.This expanded during the Cold War as the US used it economic muscle to counter the expansion of communist influence around the world.

What Trump is doing is challenging the assumptions and theories of the “Managed Trade” Globalists. Rather then cling to a 70 years old theory, maybe we need to realize that both World War 2 and Cold War are long over and we need a new trade system.


8 posted on 03/19/2018 1:02:51 PM PDT by MNJohnnie ("The political class is a bureaucracy designed to perpetuate itself" Rush Limbaugh)
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To: JPJones

One World
One People
Open Borders
Free Trade

Karl Marx


9 posted on 03/19/2018 1:03:08 PM PDT by eyeamok (Tolerance: The virtue of having a belief in Nothing!)
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To: Tax-chick

There’s a link to Shapiro’s article, and the original article in the 1st paragraph of this article. There’s also a link to the episode of his show where he addresses Morrison’s article.


10 posted on 03/19/2018 1:04:36 PM PDT by Thalean
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To: JPJones

Yup. He wrote about it explicitly. Not sure why “republicans” believe in the fiction of free trade.

Wealth is like water, it flows downwards until all levels are equal. If you have the high ground, you must build a dam or risk being left high-and-dry.


11 posted on 03/19/2018 1:05:43 PM PDT by Thalean
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To: Thalean

James Madison on tariffs and the power to regulate commerce with foreign nations =>

“The power has been understood and used by all commercial & manufacturing Nations as embracing the object of encouraging manufactures. It is believed that not a single exception can be named.”

http://press-pubs.uchicago.edu/founders/documents/a1_8_3_commerces18.html


12 posted on 03/19/2018 1:07:23 PM PDT by Ken H (Best election ever!)
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To: Thalean

I guess I just can’t see it.


13 posted on 03/19/2018 1:07:34 PM PDT by Tax-chick (I have the easiest life in the history of the world.)
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To: Thalean
“The case in which it may sometimes be a matter of deliberation how far it is proper to continue the free importation of certain reign goods, is, when some foreign nation restrains by high duties or prohibitions the importation of some of our manufactures into their country. Revenge in this case naturally dictates retaliation, and that we should impose the like duties and prohibitions upon the importation of some or all of their manufactures into ours. Nations accordingly seldom fail to retaliate in this manner.”

~Adam Smith

14 posted on 03/19/2018 1:12:57 PM PDT by Joe 6-pack (Qui me amat, amat et canem meum.)
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To: holdonnow

Yes, Ben Shapiro is Still Wrong on Tariffs. Here’s Why

http://freerepublic.com/focus/f-bloggers/3640894/posts


15 posted on 03/19/2018 1:20:46 PM PDT by conservative98
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To: Thalean

Tariffs are a tax. No one has explained to me why tariffs are worse than the income tax. I say let foreigners pay for the privilege of our markets and infrastructure. Then, let’s zero the income tax and return to constitutional money. The boom in small business will once again provide the commercial lifeblood of the Republic. The added benefit will be that corporate America, which seems to support the destruction of our culture, will lose power and influence.

No one is saying that there should be no foreign trade. The current system is not working, though. Free trade as it is currently structured is simply a way to transfer wealth from the middle class to the top 0.1%. Alleged “free marketers” who think that managed trade and the welfare-warfare state are preferable to true Christian free enterprise and limited government, need to have their heads examined.


16 posted on 03/19/2018 1:37:42 PM PDT by SecAmndmt (Arm yourselves!)
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To: Thalean

Who really cares what Shapiro thinks? He’s a freakin’ blogger.


17 posted on 03/19/2018 1:48:59 PM PDT by bigbob (Trust Trump. Trust Sessions. The Great Awakening is at hand...MAGA!)
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To: Thalean

Free Traitors™ lack any common sense and will take the country down. The have almost done so.


18 posted on 03/19/2018 1:49:10 PM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: Architect of Avalon

You not just with Trump on tariffs, you are with George Washington, John Adams and Thomas Jefferson. Pretty good company.


19 posted on 03/19/2018 1:50:34 PM PDT by central_va (I won't be reconstructed and I do not give a damn)
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To: Thalean

I often hear free trade zealots make the “tariffs are socialism” argument - the trouble is that it isn’t an argument, it’s just empty rhetoric and name-calling. Equating the use of import duties with socialism suggests that the free traders have no idea of what the word “socialism” means. Certainly no reasonable person would suggest that the United States of the 19th century (when tariffs were high and the principal or sole source of Federal revenue) was “socialist.”


20 posted on 03/19/2018 1:51:21 PM PDT by ek_hornbeck
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