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.
ICE Barricades Entrances to Prevent Protestors from Entering Government Building
U.S. Immigration and Customs Enforcement officers barricaded an employee and visitor entrance Wednesday to prevent activists from performing an “occupation” of the agency’s D.C. headquarters.
Several dozen activists had intended to enter the building to protest Trump administration deportation and border detention policies, but arrived to find temporary fencing and a line of officers blocking their way.
Amid heavy rain, activists chanted slogans anyhow, including “quit your jobs!” at Department of Homeland Security guards and ICE employees who peered from windows.
The protest was organized by Movimiento Cosecha and was advertised in a press release as a demonstration by “undocumented activists and allies,” as similar protests occur in other cities.
NRA Weird Starts Political Campaign Ads Against Ocasio-Cortez
Claiming that 22 year old Alexandria Ocasio-Cortez is a threat to America, the NRA has started pushing political ads that attack candidates that they don’t support.
“Left-wing socialists have infiltrated our nation and want to fundamentally change the country we love,” NRATV host Grant Stinchfield warns. “The socialist movement in America is real. It is dangerous. And it is more powerful than you may think.”
“The socialist movement in America is real, it’s dangerous… The election of Alexandria Ocasio-Cortez who openly despises the very system that makes America the greatest country in the world proves we must take every election seriously.” —@stinchfield1776 #WednesdayWisdom pic.twitter.com/C25QwWsgRv
— NRATV (@NRATV) June 27, 2018
WATCHDOG: NRA Russian Dark Money Funded Pro-Trump Ads Illegally
Watchdogs say an unknown amount of Russian dark money funneled through the National Rifle Association helped Donald Trump win the presidency.
The NRA is claiming they only received a few donations from Russia, but refuses to allow its books to be audited.
Robert Maguire is an investigator with the Center for Responsive Politics, which runs opensecrets.org. He said the dark money loophole that allows nonprofits to take limitless donations without reporting the source means we can’t really tell how much foreign money was spent in the 2016 presidential election.
“It’s safe to assume that what we’re seeing is the tip of the iceberg,” Maguire said. “The problem is that there’s no way to track that.”
But that figure does not include large payments from U.S. subsidiaries of companies owned by Russian oligarchs. Investigators have found such payments went to others in Trump’s orbit.
Direct foreign funding of American campaigns is illegal and could be politically toxic.
Maguire said the problem is that it might also be invisible.
And he pointed out that in the 2016 presidential race, the NRA spent three-times what it had supporting Mitt Romney in 2012 – and the money came just as big GOP donors were distancing themselves from Trump.
“The NRA spent more money than it has in any previous cycle,” Maguire said. “Without the NRA stepping into that vacuum, it would have severely impacted the chances that he would have won the election.”
Maguire said the NRA got what it paid for. After the Parkland shooting, Trump said he might back some gun-control measures – until the National Rifle Association got involved.
“The NRA in a matter of weeks had two private meetings with the president,” Maguire observed; “and we saw those sort of initiatives kind of fade away.”
- Donald Trump Tweets “Very Nice Note” from North Korea
- Trump Makes Fool of Himself Already During NATO Breakfast
- Trump Sued by Former Driver for Unpaid Wages
- Trump Wants to Deport 100,000 Citizens Next Year to Prevent Voting
- ICE Barricades Entrances to Prevent Protestors from Entering Government Building