43 Comments

There are certain industries that need to be protected for strategic reasons. And we've seen the risks associated with a far-flung supply chain.

Fortunately automation is reducing the advantages of production in low-cost countries, and transportation and other logistics costs are reduced when items are re-onshored. It won't bring all of the jobs back, but it will bring back some of them.

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One quibble: 100% of the tariff would not be passed onto the consumer unless demand for the tariffed good is completely inelastic and there are no substitutes (including non-tariffed substantially-identical items). To the extent that demand is elastic and substitute goods are available, that part of the tariff would have to be "eaten" by the seller (and/or, perhaps, ultimately the manufacturer) as a cost eating into profits.

Similarly, unless demand for the tariffed good is completely elastic and there are readily available substitute goods, at least some of the tariff will be passed along to the consumer in the form of higher prices.

In short, in the real world, it's not 100%, but it's not zero, either.

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There is a 100%/0% test that can be used to debunk or confirm economic theories.

For example, lefties denigrate the Laffer Curve... the theory that increases the rate of taxation on production will disincentivize production and at some rate of taxation the tax revenue will peak and start to decline. Just use the 100% test. Say there is a 100% tax on production. Obviously that would result in zero tax revenue because nobody would produce anything taxable. Likewise a 0% tax would result in zero tax revenue. The theory is proved as it is clear that some rate of taxation between 0% and 100% is optimum in terms of tax revenue.

With respect to tariffs justified to protect American manufacturing jobs... if we allowed 100% of our manufacturing jobs to be exported to other countries with cheaper labor, and we 100% ignored other country's governments supplementing their private industries while having their own roadblocks for US selling its products to their country... we would have massive working class under-employment and fewer people benefitting from the cheaper imported consumer goods as their incomes failed to keep up with inflation. Likewise if we allowed 0% exported jobs and %0 global competition for products that could be made domestically, American companies would not be able to compete in the global market for exports due to higher costs. This means that there is some optimum level of job-export restrictions and global competitive measures that tariffs provide.

But lastly, the comparison between liberal radical cultural ideology that destroys middle class stability and Republican interest in tariffs is not at all comparable.

With respect to Republican interests... capitalism has been corrupted to corporatism. Capitalism isn't just an excuse to pursue corporate profit at any cost. Capitalism does not exist to maximize Wall Street returns. Capitalism isn't what the establishment Regime demands it is.

Adam Smith, arguably the father of this thing we call capitalism, in his book “An Inquiry into the Nature and Causes of the Wealth of Nations” wrote not just about economics, but about a “political economy”. Smith’s book and his view of capitalism incorporated philosophy, political science, history, economics, anthropology, and sociology.

Smith recognized that capitalism was primarily a social system. In fact, Smith never really uses the term “capitalism” but refers to the thing as “commercial society”. His view was that economics was a very important component of the overall human condition. However, he concludes that any working economic system within a moral and just society must concern itself with its least well-off members, not just those with economic success. Smith viewed the market, the free market, as a mechanism of morality and social support, not just a means to an end for individual wealth generation.

This is where good Republicans can and should support tariffs in the case where capitalism has been corrupted into not serving the public good. Because if capitalism as practiced is not serving the public good, left collectivism finds its opening.

The question for all those "good" Republicans opposing tariffs, what the should we do with the American working class that has seen their economic circumstances on a downward trajectory?

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Well-stated. Also a good explanation of the Laffer Curve. It's not always a justification for ever-lower taxes.

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Unfortunately, I don't believe there are enough "good" Republicans that understand tariff's to implement them (or much of anything else correctly) except to lead the masses off a cliff with "talking" points. Adam Smith's Wealth of Nations positions are almost impossible to achieve now as greed is the major motivator and they have no concern for consequences. Remember most still don't understand when you raise corporate taxes who actually ends up paying for them.

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The US has a $1 trillion per year trade deficit, 8th highest cost of living, massive national debt, crumbling infrastructure, massive homeless problems, massive consumer debt, economic malise in many areas of the country, growing unemployment of full time workers... even given the 700k government workers that Biden hired. What should we do to help solve those problems?

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The solution is simple the implementation is a pipe dream because neither side what’s to do it. It is called grow up with return to values. #1 If people went back putting family time first, living within their means, helping each other and their community plus turn off social media etc. People survived just fine with smaller homes, and actually interacted more with their family because they had to. Emotionally better connected, more stable less dumb decisions. The influencers are running the country and we are lemmings who refuse to sacrifice anything anymore. Look at apts, we do need lower rent but modern clean units but the public (even section 8 etc) all still want fully loaded but then bitch at price and it’s always landlords fault, greedy etc. well investors invest in what they think sells so we now have no affordable housing. If we change our habits, wants, priorities things will change if not Dems liberals etc will continue to cater to enabling, fears, bribery. I can go on & on but humans are basically simple and choose the path of least resistance. They have been brainwashed into believing you can not only have it all you deserve it, and can take from those who earn it. Until that changes and for example people realize they can be happy without a kitchen the size of entire house they will continue to clamor for more. I never thought I see the day that college students would demand I pay their debts! On the other side we do need to better in taking care of those like the elderly, major medical issues or disasters. We need to get local handling things a watch them, watch the schools etc. get rid of most federal but then look what happened when all those oil workers lost jobs, imagine cutting even 25% federal employees. It all takes tremendous will, fortitude, sacrifice and doubtful unless a world war type disaster (EMP) doesn’t see it happening. The why should I change they aren’t will do us in.

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Didn't say don't have them we have some already but not as a dumb stunt at 100% or to replace income tax, etc. There will be those that would believe and push for now the idea is out there - I don't trust them. I don't trust ideas that just get throw out as click bait etc.

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Yeah, it is fanciful, but I appreciate the boldness in ideas because our current tax system is a production-killing mess.

What we need to do is cut the spending of the federal government and then simplify the national income tax into a flat tax, and then leave the corporate tax rates alone.

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Not tariffs!

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Sorry. Already have them.

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Term limits on congress and the senate is the only answer. That would take an constitutional amendment. Fat chance of that in my lifetime. 🤪

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Re: "Trust us"...

Remember that little sound-clip from "Animal House"?

https://www.youtube.com/watch?v=MYQCb3qrBpo

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OK, I live in fly-over country, and thought that "Christian Nationalism" was just a dream of the Progressives to scaremonger their adherents. You know, I have come across a couple of "KKK" or "White supremacists" in my life time but there isn't enough of them to stir up dust in West Texas. I have yet to see a "Christian Nationalist". Unless that is just a voter who goes to Christian church... I could see that as the real description, but I'm not sure. Anyone willing to fill in my knowledge gap?

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There are a ton of "christian" nationalists in my social media circle--and a few in my local circle. They see Trump as a type of messiah who will bring in God's blessing and prosperity. They go to church, but they speak of Trump more often than Jesus. They're real.

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They are “all over” the “God Bless The USA Bible.” (It must not have the Seventh Commandment and a lot of key scripture references.)

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Our Rulers in Washington should be required to pay a tariff out pocket that hurts to run for office.

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I’m a fair trade advocate not a free trade pusher by that I mean if your company or products are subsidized by a government than it’s on the table for tariffs. In turn American products should be treated the same in foreign countries . A private business that’s not subsidized should be able to trade and operate equally between countries. I realize that would shut down a lot of CCP activity on there end but that a cost for freedom

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Oops. Go back to Econ 101. There is a difference between Demand, and Quantity demanded. Remember the graphs?

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The Right have claimed that the resulting price increases from 'Bidenflation is, in effect, a 'tax.' The Left will blame greedy corporations for not absorbing the increased costs and call it 'Greedflation.'

Then the Right will claim that tariffs aren't taxes, and blame corporations for not absorbing the increased costs. The Left will blame the price increases on the Right's Tsriff Tax.

Neither side wants to accept responsibility for enacting basically the same results for which they blame the other.

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Didn't you hear the left say that their tariff increases don't cause inflation but the Republican's tariffs will. Do people actually believe anything these bozos say out loud?

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Agree on tariffs - one of Trump’s worst misconceptions is who pays them . But disagree strongly with your “ no difference between the left and right “ and the harm that they are doing to the fabric of our country. To paraphrase the old saying - they are both now evil and both incredibly stupid, but the belief system of the left is devastating to our country and its citizens and why I strongly oppose them and their candidates. Whereas, while I am at times appalled by the stupidity of the right it is much less destructive and easier to counteract IMHO. Climate policy and transgender issues are just two of the greatest differences between the parties where I view the left’s stated beliefs as incredibly destructive as well as bordering on insanity.

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DC has collectively lost the plot. They ALL need to go. It’s coming…

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You may be a youngster, Eric, but this 76 y/o Pittsburgh native watched our steel industry rot away, as imports and lack of re-investment by beancounting corporate owners teamed up to reduce our mills to rust.

I support tariffs on goods imported from unfriendly nations. I support tariffs that protect strategic industries in our nation. Rebuilding an economy that has been put on life support by progressive policies requires some shared pain.

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Just keep talking about what the far right will do…..left is already executing their plan!

Seems better if you would offer up some ideas on combating the current back breaking policies!

Seems as if Trump has listened to you and is speaking more about plans to address current issues….you just don’t like the plans.

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What a buzz kill commentary!

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What I hear most from this is that urge to go back to a time when republicans pretended to do the will of the people so got along with democrats who continued to push their agenda but slowly so hopefully we wouldn't notice. We aren't the ones who need a wake up call. The working class should be the middle class.

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