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Ron Paul: Trump Tariffs Are A Bad Idea

Ron Paul

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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.

Ron Paul is America’s leading voice for liberty, prosperity and peace. As a former member of the U.S. House of Representatives and three-time presidential candidate, Ron Paul tirelessly works for limited, constitutional government, low taxes, free markets, and a return to sound monetary policies. Ron Paul never voted for legislation unless the proposed measure was expressly authorized by the Constitution.

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GOP

Motel 6 Denies Couple Room Saying Puerto Rican Driver’s License isn’t U.S. ID

Polipace Staff

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A Puerto Rican couple visiting Sacramento County for their niece’s wedding said they were unable to check into a Rancho Cordova Motel 6 because the racist front desk clerk didn’t believe they had valid U.S. identification.

When Raul Villanueva presented his Puerto Rico driver’s license late Wednesday night, the clerk told him, “Oh, you need a license from the United States,” he said.

“I said, ‘This is a license from the United States, that’s Puerto Rico. Puerto Rico is the United States.’ She said, ‘No, it isn’t,’” Villanueva recalled.

Villanueva needed his ID in order to verify his reservation. The woman working at the front desk then asked for his and his wife’s passports, which he reluctantly retrieved.

“She wouldn’t take the passports after all,” Villanueva said. “When I brought them she said, ‘No, I won’t take it. I won’t take that.’ So I said, ‘OK, then give me my money back.’”

The couple called Motel 6’s corporate office Thursday and talked to a representative. The person apologized for the mistake and admitted Puerto Rican identification is on their list of accepted IDs.

The couple ended up staying the night with a relative. They still haven’t received their money back from Motel 6.

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Border Patrol Turns Against Trump, Calls His Border Plan “Colossal waste.”

Polipace Staff

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The National Border Patrol Council seemingly has turned against Trump, calling Trump’s efforrts to send National Guard troops to the American-Mexican border, nothing but a huge “colossal waste of resources.”

“We have seen no benefit,” said Brandon Judd, president of the union that represents 15,000 agents, the National Border Patrol Council. “We generally support the administration, but we’re not going to be cheerleading when things are not going well,” Judd said.

Additionally, Agent Chris Cabrera, a spokesman for the union in the Rio Grande Valley, said troops are stationed far from the border, duplicating rather than lessening agents’ workload – and often getting in the way and sometimes getting lost.

He points out that most of the troops are just standing around, having to find “busy work.”

Texas Rep. Mary E. Gonzalez, who represents a district outside El Paso, agrees. “The National Guard deployment is a waste of finite resources, and is duplicative of existing border security efforts.”

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GOP

Ralston: Las Vegas Review Journal Orders Reporters Not to Cover Gubernatorial Democratic Debate

Polipace Staff

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According the Nevada Independent Editor Jon Ralston, the Las Vegas Review Journal has ordered its reporters not to cover the Democratic debate between  Gubernatorial Democratic Candidates. The Review Journal is owned by GOP Mega-donor Sheldon Adelson.

What began as an abstract fear of a powerful new owner’s political hand wanting to steer the paper’s news coverage, after Sheldon Adelson was revealed as the “secret” buyer of the Review-Journal in 2015, has become a reality: Addelson is now controlling the political content specifically to harm Democrats.

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