Any opinions on the Great Tariff Scare of 2018?

Discussion in 'General Politics' started by DanteEXT, Mar 9, 2018.

  1. DanteEXT

    DanteEXT Well-Known Member

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    Honestly I don't have an opinion but I'd be interested in reading what others may think of it.
     
  2. tabascocat

    tabascocat Well-Known Member

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    I like it, especially since Mexico and Canada are exempt.
     
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  3. cml750

    cml750 Well-Known Member

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    As a free trade guy I am against tariffs but I now see what Trump is doing. As usual he is playing chess while the people he is dealing with are playing checkers. He is using this to leverage better trade deals. It was the one campaign promise I did not like from Trump but since he is the first President in decades to actually try to keep his promises, I shouldn't be surprised he is keeping this one. If we end up with better trade deals that is a good thing. Gaining the support of the USW (United Steel Workers) union is another big plus that will play well in 2020 even if the union heads don't support him then, the rank and file will remember.
     
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  4. speedkilz88

    speedkilz88 Well-Known Member

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    A tariff war will be bad for the economy, but a lot think that Trump is just using it for leverage for better deals. We are definitely getting raw deals with Japan & China.
     
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  5. JoeKing

    JoeKing Well-Known Member

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    In Trump I trust. Paul Ryan and Scott Walker need to shut up.
     
  6. Alex_P_Keaton

    Alex_P_Keaton Well-Known Member

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    I hope the threat of tariffs is merely a negotiation tactic. High tariffs are bad for an economy in the aggregate. Yes, if we force American businesses to buy American steel, it might save the job of a steel worker. But, it will cost jobs in industries where steel is an input. Price of steel goes up, cost of doing business goes up, fewer jobs.
     
  7. Alex_P_Keaton

    Alex_P_Keaton Well-Known Member

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    Ultimately, a pro protectionist stance is what got Trump elected. It is what turned the blue wall red. For years, Democrats have misled unions in rust belt states. They’ve blamed free trade for outsourcing and deindustrialization and the loss of auto manufacturing jobs, and put it at the feet of Republicans. Democrats have championed an amorphous, hopelessly ambiguous concept known as “fair trade.” It’s one of their favorite election year buzzwords, but like so many other buzzwords, it means nothing. It’s pandering. Free trade has hurt some sectors of the economy, but in the aggregate, it has been a net boon. Democrats know this.

    Along comes Trump, who says, “hey, you know that protectionism thing the Democrats are always talking about. I’ll actually do it.” It is the rhetoric Democrats have been feeding them for years. It is little mystery why the blue wall crumbled. Trump has to take a protectionist stance to keep those votes.
     
    Last edited: Mar 11, 2018
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  8. JoeKing

    JoeKing Well-Known Member

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    The only reason steel is cheaper to make overseas is because labor is cheaper overseas. When slave labor is the difference in where an industry originates, it's absolutely right to slap a tariff on the product of that slave labor to even the field.
     
  9. Alex_P_Keaton

    Alex_P_Keaton Well-Known Member

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    Cheap labor is not synonymous with slave labor.

    Consider China. Prior to market liberalization and trade reforms made in the 1970s, about half of the country lived in absolute poverty. Post reform, less than 10% of the country lives in absolute poverty. It’s true Chinese factory workers make a fraction of what their American counterparts do; however, it’s also true factory jobs save Chinese workers from a grueling life of subsistence farming. And now China has a burgeoning middle class. They’ve come a long way from agrarian poverty in a short time.
     
  10. tabascocat

    tabascocat Well-Known Member

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    What a rally today in PA, classic Trump :)
     
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  11. JoeKing

    JoeKing Well-Known Member

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    Your American idea of slave labor is not what I'm talking about. So these are Chinese and not black laborers and they are not in chains. The cost of making steel in China is half of what it is in the United States, yet the average Chinese steelworker earns 10 times less than the average American steelworker. China's abuse of labor is well documented. Defending that practice is disgusting. China benefiting from its cheap labor practices should come to an end and tariffs are just one way that this gets done.
     
  12. JoeKing

    JoeKing Well-Known Member

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    Keep America Great!
     
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  13. Alex_P_Keaton

    Alex_P_Keaton Well-Known Member

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    Chinese workers make so much less than their American counterparts for the same reason the US is generally more productive than China despite having a work force a fraction the size of China’s: Chinese jobs are less capital intensive and more labor intensive. This is important because more capital means more technology (ie equipment), which means increased productivity per hour worked.

    Compensation rates are dependent on marginal productivity; that is, the productivity a business games by hiring you as a worker. They cannot pay you more than your marginal productivity or there’s no incentive to hire you. You cost them money.

    Chinese industry simply does not have the level of capital and technology that American industry does. If you pass a law tomorrow requiring Chinese businesses to pay what American businesses do, the Chinese economy would collapse. It could not support that rate of pay. I’m not defending Chinese practices, business or otherwise. I’m simply explaining their reality.
     
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  14. JoeKing

    JoeKing Well-Known Member

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    No need to pass a law requiring Chinese businesses to pay what American businesses do. The tariff will make their product as costly as ours.
     
  15. Nova

    Nova Well-Known Member

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    Exactly.

    It's surprising that Democrats don't understand what lost them the election-- Donald Trump appropriated their own BS message.

    This is pretty much why I don't fit into any political party.

    Like real republicans, I am pro free trade.

    Some professions will get trampled or become obsolete, but the onus falls on the American market to replace those professions with newer, potentially better jobs.

    Protectionism is one of the dumbest left wing fantasies that has been sold to the American people for years.

    This is a bad idea.
     
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