Are the simple tariffs a big mistake?

03/08/2018 Leave a comment

This analysis thinks they are.

Decide for yourself. I had econ and finance courses from 5 Nobel Laureates at MIT and I’m not going to tell you I can predict the outcome of the Trump/Ross tariff approach without serious further research.  I do believe the Left criticism of current trade arrangements as favoring the rich, corporations, and IP protection for corporations and harming the working class. What I have also heard is that China manipulates currency, steals IP, and dumps products at below-market prices to put other countries out of business.  SO, some targeted actions re China are probably necessary, but not against everyone.

Further, I would do NOTHING until I had a robust study and debate among all sides on this issue, and understood the likely ripple effects of a major change like this on all parties.  One of which is to further undermine our reputation and currency. Finally, if we want to punish China, put a QUOTA on their stuff, rather than disrupting everything and everybody.  Are you aware Mexico is giving up on U.S. and buying much more corn from Brazil now?  They’re not waiting for Trump to change or cancel NAFTA.  There are consequences from what Presidents say – let alone DO.

One thing we should think about is tariff parity (because we do suffer in some cases), and the benefit of those taxes to our deficit.  We could use some tax revenue… 

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