President Donald Trump’s planned 25 percent tariff on steel imports and 10 percent tariff on aluminum imports may provide a temporary boost for those industries, but the tariffs will do tremendous long-term damage to the American and global economies. Tariffs raise the price of, and reduce demand for, imported goods. Tariffs ensure the preferences of politicians, instead of the preferences of consumers, determine how resources are allocated. This reduces economic efficiency and living standards.
Some justify these economic inefficiencies as being worth it to save American jobs. This ignores how tariffs increase costs of production for industries reliant on imported materials to produce their products. These increased costs lead to job losses in those industries. For example, President Trump’s proposed steel tariff could cost nearly 40,000 jobs in the steel-dependent auto manufacturing industry. Tariffs also cause job losses in industries reliant on exports. This is especially true if – as is likely to be the case – other countries respond to President Trump’s actions by increasing tariffs on US products.
Many of President Trump’s critics do not themselves support true free trade, which is the voluntary exchange of goods and services across borders. Instead, they support the managed (by government) trade of NAFTA and the World Trade Organization (WTO). NAFTA and the WTO promote world government and crony capitalism, not free markets. Any libertarian or free-market conservative who thinks the WTO promotes economic liberty should remember that the WTO once ordered Congress to raise taxes!
Foreign manufacturers may make convenient scapegoats for the problems facing US industry. However, the truth is that most of the problems plaguing American businesses stem from the US government. American businesses are burdened by thousands of federal regulations controlling every aspect of their operations. The tax system also burdens businesses. Until last year’s tax reform bill, the US had the highest corporate tax rates in the developed word. The tax reform bill lowered corporate taxes, but the US corporate tax rate is still higher than that of many other developed countries.
The United States not only spends more on “defense” than the combined budgets of the next eight biggest spending countries, but also spends billions subsidizing the defense of developed counties like Germany, Japan, and South Korea. Bringing US troops home from these countries is an excellent place to start reducing spending on militarism.
The biggest cause of our economic problems is the Federal Reserve. America’s experiment with fiat currency has enabled a system based on private and public debt. This makes trade imbalances inevitable as the US government needs foreign investors to purchase its debt. Foreign investors get the money to purchase the US government’s debt by selling products to American consumers. A trade war could cause foreign investors to stop buying US debt instruments and could end the dollar’s world reserves currency status. This would cause a major economic crisis – but at least it would stop our shores from being flooded with “cheap foreign goods.”
President Trump’s claim that trade wars can be easily won is as credible as the neoconservative claim that the Iraq War would be a cakewalk. A trade war would likely push the global economy into a recession or worse. Instead of imposing costs on American businesses and consumers and putting those whose livelihoods depend on imports out of s job, President Trump should address the real causes of our economic problems: the welfare-warfare state, the IRS, and the Federal Reserve.
Republican Block Investigation into NRA’s Illegal Russian Donations
Late last week, the two Republican FEC commissioners blocked an investigation into whether Russians used the National Rifle Association (NRA) to pump millions of dollars into the effort to help Donald Trump get elected in 2016.
Early last year, McClatchy DC reported that the FBI was investigating whether Russian banker Alexander Torshin, who has close ties to Russian President Vladimir Putin, had illegally donated large sums to the NRA to get Trump elected.
In March, the FEC launched a preliminary investigation into the matter. Now, however, the commission’s Republicans have blocked the agency from investigating further.
“This is an abandonment of the Commission’s basic duty to investigate wrongdoing, and is contrary to law,” commented FEC chairwoman Ellen Weintraub in a statement.
“All our lawyers had to do was pick up the phone, call the FBI, and ask: Are you, in fact, investigating the Respondents for the violations alleged? But when I suggested that the Commission instruct OGC to do so, the Republican commissioners refused,” Weintraub wrote. “We still do not know the answer to this foundational, eminently knowable, question.”
Her Republican colleagues rejected the accusations. Commissioner Caroline Hunter told Newsweek that Weintraub’s “statement is long on conjecture and short on the evidence and the law.”
“Some allegations are too serious to ignore,” Weintraub stated, “Too serious to simply take Respondents’ denials at face value. Too serious to play games with.”
By voice and vote, Communications Workers censure Trump’s racism
By voice and by vote, in statements from leaders and members and in a blistering resolution, the Communications Workers convention strongly censured GOP President Donald Trump’s racism.
Trump’s “naked appeal to white supremacy” is “dividing the country in ways we haven’t seen in half a century and probably haven’t seen since the Civil War,” union President Chris Shelton declared during his keynote address on July 29 to the convention’s 2,000 delegates.
The blast at Trump was one of several highlights of opening day of the union convention, held in Las Vegas. Another was exhortations to build on past political momentum, and victories, in the run-up to the 2020 national election.
“It’s not just the president,” Shelton explained, after citing the need to beat Trump next year. “We also have to hold the (U.S.) House. And nationally, Senate races won’t be easy. But the road to a majority runs through North Carolina, Maine, Georgia, Arizona, and Colorado.”
Vulnerable GOP senators from those states, along with Majority Leader Mitch McConnell, R-Kent., and 16 other Republican senators, are up next year. Democrats hold 45 Senate seats, plus two Democratic-leaning independents, and are defending 12. A five-seat Democratic gain would turn over the Senate.
“We must do everything we can to win the Senate and ask American politicians to serve the American people again.”
And the union’s women’s committee – whose report noted a dearth of women in top posts at CWA, in unions and in politics — pledged to put a woman in the White House and add so many women into top ranks that CWA would have to set up “a men’s committee” to tackle their problems.
But Trump’s racism, especially his vitriolic “go back where you came from” attacks against progressive Reps. Alexandria Ocasio-Cortez of New York City, Rashida Tlaib of Detroit, Ayanna Pressley of Boston and Ilhan Omar of Minneapolis, were the focus of ire, and not just from Shelton.
“In times like these, we need to be united as a union and as a country,” said Diane Bailey of Local 4310 in Columbus, Ohio, during the brief discussion. “Division only works against us. We must not go backward; we can only move forward.”
“White nationalism is wrong. Racism is wrong,” declared Local 4123 President Charles Daniels of Pontiac, Mich. “The president of the United States telling four women of color to ‘go back where they came from’ is wrong.”
“We stand up to bullies and we have to stand up now because it is the president of the U.S., so it’s incumbent on us to say ‘no.’ As powerful as he is, it’s wrong,” Daniels said of Trump’s statements.
The resolution was in a similar vein.
After citing the Statue of Liberty’s poem by Emma Lazarus, the resolution said, “that is the America we believe in. Apparently, the president of the United States does not share that belief.”
The resolution says Trump’s attacks on the four first-year lawmakers, all women of color and all Democrats, are “offensive, demagogic, dangerous and racist.” Trump’s language “poses a particular danger to Omar, given the barely hidden networks of armed white supremacists whose hatred of Muslims hardly needs to be stoked by” Trump.
Omar and Tlaib are the first two Muslim American women ever elected to Congress. Omar is a refugee from the Somalian civil war. Tlaib, Ocasio-Cortez, and Pressley are native-born.
CWA not only denounced Trump but demands other unions, legislatures and community groups do so, too. Earlier in July, the National Education Association, the nation’s largest union, did so. But CWA also demanded Trump’s GOP colleagues to “denounce his un-American rhetoric.”
“All too many have been silent in this controversy,” it notes. As a matter of fact, the number of elected GOPers nationwide – senators, representatives, and governors – who have blasted Trump’s racism can be counted on fewer than the fingers of two hands.
Though the delegates censured Trump, impeaching him did not come up in either in the convention resolutions committee or on the floor. That seemingly runs counter to continuing grass-roots sentiment among rank-and-file Democrats. But the party’s leaders, in Congress and in organized labor, either oppose the move (Congress) or are silent so far (labor).
The union’s denunciation of Trump “is about his racism, not necessarily his policies,” one speaker said, attempting to reassure those CWA members, and other workers, who voted for Trump in 2016.
“Real leaders unite us so we can move forward, build unity around the American dream and fulfill the bold promise of the Statue of Liberty: ‘Give me your tired, your poor, your huddled masses yearning to be free,’” quoted Shelton, a New Yorker and former New York Telephone lineman, whom delegates re-elected that afternoon by acclamation. They also re-elected Secretary-Treasurer Sara Steffens, a News Guild member, by acclamation to the union’s #2 post.
Inside Candace Owens’ $37,500 Reparation Check
Months after graduating Stamford High in Connecticut, Candace Owens received $37,500 from the government after Owens received racist voice mails. This is the same woman who claims that racism doesn’t exist– and that she “made it on her own.”
The supposed ringleader was fellow student Evan Kopek, who “had a shouting match” with Owens two days before the incident in February 2007. Kopek was suspended, but the school refused to “discipline him and the other boys for an incident committed off school grounds unless the police made an arrest.” This decision caused Owens to miss school for six weeks because “it was traumatic to attend with the alleged callers.”
The NAACP even offered its support.
Years later, during a 2019 appearance at CPAC, the annual conservative conference, Owens had this to say about racism in America (via Daily Beast). “Stop selling us our own oppression,” she said. “Stop taking away our self-confidence by telling us that we can’t because of racism, because of slavery. I’ve never been a slave in this country.”
- Republican Block Investigation into NRA’s Illegal Russian Donations
- By voice and vote, Communications Workers censure Trump’s racism
- FBI to Investigate Gilroy as Misogynistic Domestic Terrorism
- Inside Candace Owens’ $37,500 Reparation Check
- Gallery: Inside Melania Trump’s Extreme Forced Plastic Surgery