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Tariffs just cost 1 million US jobs as Jack Ma backs out of promise to Trump

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Tariffs just cost 1 million US jobs as Jack Ma backs out of promise to Trump

Before President Trump was inaugurated, Alibaba’s head Jack Ma made headlines by promising the President-elect he would bring one million jobs to America in the next five years. President Trump ballyhooed the announcement as a sign that his mere presence was enough to put more Americans to work.

With new tariffs imposed this week on China, Ma is backing out of his promise.

Jack Ma: Alibaba is no longer planning to create 1 million US jobs

https://www.cnbc.com/2018/09/19/jack-ma-alibaba-is-no-longer-planning-to-create-1-million-us-jobs.html“The promise was made on the premise of friendly US-China partnership and rational trade relations,” Ma told Chinese news site Xinhua on Wednesday. “That premise no longer exists today, so our promise cannot be fulfilled.”

Ma, who recently announced that he will step down as Alibaba chairman within a year, added that the company would “not stop working hard to contribute to the healthy development of China-US trade.”

My Take

Using tariffs in the modern world will never generate the same results they did in the middle of last century. The negatives greatly outweigh the positives even if you take out the foreign relations challenges they create. When you add in bad blood forcing defensive decisions, you get what we’re seeing today.

A million potential American jobs just evaporated.

On top of the strain on foreign relations, there’s the question of who ends up paying for tariffs. No, it’s not the foreign companies who pay. It’s the consumers, in most cases American citizens and businesses, who end up paying higher prices to compensate for the artificial costs of tariffs.

The only valid, albeit unnecessary use of tariffs by the United States is as a deterrent for certain industries to import materials rather than using domestic alternatives. For example, sugar tariffs are intended to make food companies use American sugar in their products. It doesn’t create more jobs, but it does protect some. Moreover, it keeps the production flow from relying on foreign materials. I’m not defending this as a “good” use of tariffs or domestic subsidies, but it’s at least understandable.

We have to remember who were are and the time we’re in. America is a consumer nation. There will always be a trade deficit with everyone because we need their products and they need our money. That’s why a healthy free trade relationship is beneficial to both sides. Tariffs disrupt the synergy.

There are definitely protectionist measures that can and should be taken in certain circumstances to prevent as many jobs as possible from leaving the country, but those measures are targeted. They should be beneficial rather than detrimental; it’s better to financially encourage companies to hire American than to punish the ones that don’t.

Few in the media will publicize this huge story because both sides are having trouble reconciling a Republican administration that pushes the leftist concept of tariffs. Senator Bernie Sanders and President Trump agree on trade, so the media will be silent through the confusion.

Democrats

PragerU: What’s wrong with government-run healthcare?

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PragerU Whats wrong with government-run healthcare

This latest video from PragerU details how another vote-buying pipe dream from the Left can never work.

A new video from PragerU features policy expert Lanhee Chen from the Hoover Institution at Stanford, who explains how ‘Free Healthcare’ can never work in the real world. As is the case with most Leftist vote-buying schemes, the ‘The Medicare for all’ fiction is long on promises and short on how it will be funded. The tax burden for such a scheme would destroy the economy and would have to be levied on almost everyone. This kind of national socialized healthcare would also take away the incentive for innovation, which has made for the best healthcare system in the states and the rest of the world.

One often suspects that these assurances of freebies are never meant to operate as promised. Witness the much vaunted Obamacare that was supposed to eliminate the uninsured, but did nothing of the sort. Such is also the case with their push for Liberty control, since it never works as advertised.  In most cases, it should be apparent that the Left doesn’t care if their schemes will work or not. If they did actually care, they would try something else, something that actually works.

For the Left, their ‘Ends justifies the means’ mantra extends to most of their agenda. It doesn’t matter if their system of societal slavery works or not, only that it brings them the power they crave.

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Economy

Wayne Dupree on cutting entitlement programs

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Wayne Dupree on cutting entitlement programs

When the truth goes against the narrative, it’s hard for many to swallow. Entitlement reform, which has been on the Republican platform for decades, has been in the perpetual state of always getting promised but never getting delivered. The reason it keeps getting kicked down the road is because it’s simply too hard to take away things that millions have gotten used to receiving.

At least President Trump was honest enough to say from the beginning that he wasn’t touching entitlements.

What Democrats don’t want you to know and what Republicans only want you to remember on election day is that entitlements are crippling the economy. We can no longer say they’re going to hurt our children and grandchildren. It’s now to the point that we can’t make fiscal decisions as a country without considering the huge chunk that encompasses entitlements.

Conservative Radio Host Wayne Dupree has been fighting this battle for a while. He rightly contends that the pain we’d feel today if entitlements were cut is small compared to the pain we’ll feel in the near future and beyond if they’re not cut.

Yes, it’s hard to make cuts to something that supports millions of Americans, but there are ways to reform the system and still protect the most vulnerable. Kudos to Wayne Dupree for fighting this unpopular battle.

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Economy

Trump’s best fiscal move yet: Telling his cabinet to shave 5% off their budgets

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Trumps best fiscal move yet Telling his cabinet to shave 5 off their budgets

I’ve been harsh towards the President when it comes to budgets and deficits. At times he has seemed more like President Obama, albeit reluctantly, with outrageous budgets signed and deficits that would make Democrats blush. His latest move is one that I can support wholeheartedly.

He just told his cabinet to shave off 5% from their 2020 budgets.

Trump asked members of his cabinet to figure out how to cut 5 percent of their budgets

https://www.theblaze.com/news/2018/10/17/trump-asked-members-of-his-cabinet-to-figure-out-how-to-cut-5-percent-of-their-budgetsI’m going to be ask each of you to come back with a 5 percent budget cut from your various departments, whether it’s a secretary or administrator, whatever. I’m going to ask everybody to come back with a 5 percent cut for our next meeting. I think you’ll all be able to do it. There may be a special exemption, perhaps. I don’t know who that exemption would be. If you can do more than five, some of you will say ‘hey, I can do much more than 5.’

Most conservatives would point to last year’s tax cuts as his best fiscal move, but it was really an action by Congress. The White House gave input and helped sell it to the people, of course, but it wasn’t really a “move” made by Trump. We’ll give him some credit for it, but most of the heavy lifting was done on Capitol Hill.

Telling his cabinet to cut 5% across the board is a Presidential move and by far his best fiscal decision to date. The key to this will be follow-up; if he doesn’t hold his team accountable, then it was simply a soundbite. If he holds their feet to the fire and dishes out repercussions to those who don’t comply, then this will represent a seismic shift in the way the White House operates.

It’s a business move made by a businessman who has had to make this move many times in the past. He brought several things to the table shifting from the boardroom to the Oval Office. Second only to his deal-making skills are his skills in operating a sound financial operation. This is indicative of his experience.

To be fair, this is more of a campaign move than an expression of conservative fiscal values, but we’ll take it no matter what motivated the move. 2020, the target for these cuts, is his reelection year. Hitting the stump and talking about how he forced every agency and department to cut their budgets by 5% will go a long way towards wooing conservatives.

One of the biggest reasons Americans put Donald Trump in the White House is because of his business acumen. This move exemplifies why millions trusted him to sit in the Oval Office. With budgets where they are, DC must cut, cut, and cut some more.

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