Free market/fair trade

[narwhalParticipant]

Trump’s proposal to put tariffs on steel and aluminum is heavily in the news. I understand and agree that such a tariff is going to raise costs to consumers in the US. What bother’s me is that it seems the discussion just stops there, when there is so much else to factor in.

First off, chances are that the foreign company will not pass all 25% of the steel costs onto customers. They will absorb some of it in order to compete. As well, US steel makers are going to ramp up production because they have a relative advantage on price. This will allow them to theoretically bring in revenue that they can reinvest in ways to reduce production costs and more efficiently produce steel, allowing them to compete better with or without a tariff.

But that really isn’t the most important factor to begin with as far as I see it. Tariffs are far from the only government force that effects prices for consumers. Steel producers also have to pay taxes, meet regulations on employment, minimum wage, as well as safety regulations. All things that foreign steel producers may or may not have to deal with at different levels. It is well know that China does not have similar regulations to deal with that US producers do.

I am not suggesting that all taxes and regulations are bad, I’m just saying that you can’t talk about tariffs and the economy without factoring in everything governments do to mess with the free markets. In fact, I would argue that if we’re going to start having a ‘trade war’ as a means improving our import business, coupling it with lower taxes and regulations, which we are doing, is the way to do it.

Anyone who is going to argue that corporations need to be heavily taxed cannot logically be against tariffs. If your going to claim that corporations are ‘fat’ and can absorb the tax, then foreign countries should have no problem absorbing a tariff as well.

Switching gears a little bit. One of the arguments for keeping illegal immigrants in the US is because it’s cheap labor, and food prices and such will go up. Why, because these workers are not subject to the same regulations as US citizens are. If you were to make all of these immigrants citizens overnight, rises in prices are surely soon to follow. That means that saying ‘Americans won’t do the work’ isn’t accurate. It also says you are fine with people living in below US standards if that means cheaper prices for you.

Like usual, government(s) almost always makes things worse when they get involved in the economy.

Ok. Then do it.

[Faust For ScienceParticipant 22531]

narwhal wrote:

Trump’s proposal to put tariffs on steel and aluminum is heavily in the news. I understand and agree that such a tariff is going to raise costs to consumers in the US. What bother’s me is that it seems the discussion just stops there, when there is so much else to factor in.

President Trump designed these tariffs to force Mexico and Canada to do something about NAFTA.

President Trump has been trying to negotiate NAFTA, or leave NAFTA, since a year ago. The requirements for the U.S. to leave NAFTA is for representatives of all three nations to meet and talk a number of times. Present, the sixth meeting is taking place and throughout the meeting the representatives for Canada and Mexico refuse to do anything about NAFTA.

Everyone knows NAFTA is screwing over the U.S. The governments of Mexico and Canada refuse to change this. So, President Trump is stirring the pot with these tariffs.

[743 roadmasterParticipant]

The counter balance to the increase in price is the no tax on US steal and aluminum.

Free trade is a great idea, but the reality is other countries can just dump product until no US production, which has a huge overall effect on the economy. That factory dollar supports 4 or 5 other businesses, which in turn support several more. The Tariffs are big news across the industry belt in the north/mid west and south.

mgtow is its own worst enemy- https://www.campusreform.org/

[BoBParticipant 823]

Tariffs aren’t forever, but are a tool in the toolkit. I’m a free-trade guy, but it doesn’t exist today. I agree that this is leverage in NAFTA and that this is one tool to use to put America back in the driver’s seat.

[Anonymous 7]

Faust For Science wrote:

President Trump designed these tariffs to force Mexico and Canada to do something about NAFTA.

At first I was like ‘oh s~~~’, punitive tariffs have been used before but rarely work out.

Then, the Trumpster said he would not impose them if a NAFTA deal gets done and soon.

Trump claims we are already in a trade war and losing.

Now, I am thinking I will kick back and watch what happens. Trump is not the idiot that the media portrays him as.

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