Up in the White House … Tariff Man!

 

Tariff Man!

Faster than a speeding tweet! More powerful than steamrolling economy! Able to leap to illogical conclusions!


Would someone please whisper into Trump’s ear that fact that tariffs amount to a tax on what Americans pay for everything, whether imported or not.

Put a tariff on steel and the cost autos built in the U.S. increase. Got it?

Put a tariff on stuff coming from China and they counter with a tax on soybeans, which are left to rot in silos.

Ludwig von Mises:

It is important to realize that what those benefited by these measures (tariffs) consider an advantage for themselves lasts only for a limited time. In the long run the privilege accorded to a definite class of producers loses its power to create specific gains. The privileged branch attracts newcomers, and their competition tends to eliminate the specific gains derived from the privilege. Thus the eagerness of the law’s pet children to acquire privileges is insatiable. They continue to ask for new privileges because the old ones lose their power.

Ramirez cartoon

 

 

2 comments on “Up in the White House … Tariff Man!

  1. Deleted says:

    I guess that passes for a rebuke.

    During a republican presidents term anyway

  2. Rincon says:

    I was a little surprised myself. So far as I know, economists say tariffs usually cost both sides plenty, but I confess ignorance as to whether there is justification of Trump’s actions. China has been accused of stealing intellectual property and bullying American industries to hand over technical secrets as a cost of doing business there. They also cause chaos in world markets with their currency manipulation and their industry subsidies. Their monopolization of the solar panel industry comes to mind, as well as their using their control of the world lithium market to intimidate other countries. Their militarization of the South China Sea is also unforgivable

    Taking them down a peg or two for their various misbehaviors may pay dividends in the long run, but I don’t know how egregious their behavior is compared to ours. One thing is definite though. The tariffs have weakened our sanctions on Iran and forced Trump to stay buddies with Saudi Arabia, because a sudden rise in the price of oil, when added to the tariffs, could cause a nasty recession and therefore, harm Republican ambitions in upcoming elections.

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