Sterling Terrell

smart ideas from books (mostly)

  • Home
  • About
    • My CV
    • Books
    • Series
  • Newsletter
  • Advertising
  • Tools
You are here: Home / Potpourri / Trump Tariff Nonsense

Trump Tariff Nonsense

Trump Tariff Nonsense

On economics, Donald Trump has no idea what he is talking about.

“But he is a billionaire! A smart businessman!” you say?

Well, he has been bankrupt a number of times.

And would be better off if he had simply invested all his money in the S&P 500.

But yes – he is a billionaire. I will give him that.

My issue, however, deals with his view on trade.

He is either bloviating nonsense or simply dangerous.

He has proposed a 25% tariff on imports from China.

Most recently, he has proposed a 45% tariff on imports from China.

The reasons for the proposed tariff includes unfair trade and currency manipulation on the part of China.

In regard to currency manipulation, I am not sure what Trump thinks that the U.S. Federal Reserve does exactly.

A country manipulates its currency, to the “benefit” of themselves?!

Of course, they are. And we do the same thing.

However, if Trump wants to be against ALL currency manipulation and endorse a gold standard – or the like – I can respect that. But my guess is that he wants no such thing.

Second, the issue implies that China is devaluing its currency to unfairly make goods cheaper, relative to the US dollar and other currencies.

This makes Chinese goods cheaper for others to buy.

But – it also makes all other goods more expensive for the Chinese to buy.

Artificially, our standard of living goes up (through cheaper goods) – while China decreases the standard of living of its own citizens (through more expensive goods).

A 45% proposed tariff on all Chinese imports is, however, the most insidious.

You realize that it would make everything imported from China 45% more expensive, right?

Do you have any idea by how much that would decrease the standard of living for the average American absent similarly priced alternatives?

I hope everyone remembers the Smoot-Hawley Tariff Act and how instrumental it was in the Great Depression.

My guess, however, is that thankfully, Trump is just bloviating before the big deal.

If elected, it allows him to go into negotiations with China threatening to end trade relations, so he can come out and say: “Hey, China has agreed to import more U.S. goods.”

Let’s hope so anyway.

We should be leading the way on freedom, free-trade, and economic sanity – not posturing against it.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: PotpourriTagged With: #Economics, #Tariff

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy

Subscribe to Blog via Email

Notifications of all new posts by email.

Connect

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

Search

Top Posts

  • The Tricky Lily Pad Riddle (You Probably Can't Solve)
    The Tricky Lily Pad Riddle (You Probably Can't Solve)
  • Can You Solve The Bat And Ball Riddle?
    Can You Solve The Bat And Ball Riddle?
  • Another Great Riddle For You To Try
    Another Great Riddle For You To Try
  • Mercy, Elevation Worship & Maverick City
    Mercy, Elevation Worship & Maverick City
  • This Is How To Draw A Simple Robot
    This Is How To Draw A Simple Robot
  • Keep People Guessing By?
    Keep People Guessing By?
  • Wagon Train Morality
    Wagon Train Morality
  • The Tragedy Of Gina "Bronco" Bouza (1932-1957)
    The Tragedy Of Gina "Bronco" Bouza (1932-1957)
  • Instabooks 146
    Instabooks 146
  • Tesla Model S
    Tesla Model S

Supporting = Loving

Buy Me a Coffee

Recent Posts

  • Tesla Model S
  • Brandon Hays First Sermon @ The Church At Harpeth Heights
  • How To Make A Clay Pot
  • My Reading Advice
  • Sometimes It’s Fun Being A

Copyright © 2023 · Generate Pro On Genesis Framework · WordPress · Log in