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Economy

Trade war one-year anniversary: A hopeless economic hell

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Trade war one-year anniversary A hopeless economic hell

America is about to “celebrate” the one-year anniversary of the start of Trump’s trade war.

On January 22, 2018, the man with more business failures than successes — including four bankruptcies — began his assault on the U.S. economy by imposing YUGE tariffs on solar panels and washing machines manufactured outside the US.

The case for tariffs on washing machines was pushed by Michigan-based Whirlpool chairman Jeff Fettig who claimed that tariffs would create new manufacturing jobs in several Midwest states.

“This is a victory for American workers and consumers alike,” Fettig said, despite historical evidence that tariffs create few jobs and always result in higher prices — a point made by Sen. Ben Sasse (R-NE) at the time. “Moms and Dads shopping on a budget for a new washing machine will pay for this — not big companies.”

So, on this one-year anniversary, was Sasse correct? Yep! 100 percent!

Samsung North America CEO Tim Baxter said in a recent interview with FOX Business that Trump’s tariffs have had a negative impact on the prices of Samsung products.

The industry actually ended up after the imposition of the section 201 [tariffs] about a $100 price increase on literally all laundry products. So, a category that was growing with the GDP is actually contracted in 2018.” (Emphasis mine.)

Did you notice he said that “the industry,” not just Samsung, had increased prices? Did you also notice that the industry “was growing” before Trump started his trade war?

By the way, the word “contracted” should be setting off alarm bells. When enough segments of an economy contract over a period of time, you end up with a recession.

Now that the full impact of Trump’s trade war is being felt, we’re beginning to see that he is hurting many sectors of the economy. Here are just a few areas making the news recently:

  • U.S. manufacturing slowed to a six-month low in October
  • Farmers are being crushed by China’s retaliatory tariffs
  • The housing market is showing signs of slowing down due to the rising cost of labor and materials
  • U.S. steel prices are now the highest in the world
  • Automakers Ford and GM are cutting jobs and shuttering plants due to high steel prices and slow sales

According to recent estimates by the National Taxpayer’s Union Foundation, the annual cost of Trump’s tariffs on consumers will be $41.65 billion next year and will exceed the taxes Americans will pay for Obamacare ($34.6 billion)

For those of you hoping that Trump will realize the error of his ways and reverse course, let me quote the sign hanging over the entrance to Hell from Dante’s Inferno. “Abandon all hope, ye who enter here.”

It was recently announced that Trump will use his upcoming State Of The Union address to urge Congress to pass new legislation expanding his trade war powers. The proposal will give Trump more authority to raise tariffs without Congressional approval and already has the support of key Republicans.

You know, quoting Dante was more appropriate than I realized. Trump’s trade war is creating an economic hell, and it looks like we should abandon all hope that he’ll be stopped.

Originally posted on StridentConservative.com.

 


David Leach is the owner of The Strident Conservative. His daily radio commentary is distributed by the Salem Radio Network and is heard on stations across America.

Follow the Strident Conservative on Twitter and Facebook.

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Economy

What the partial government shutdown reveals about American’s finances

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What the partial government shutdown reveals about Americans finances

The partial government shutdown has been going on for nearly a month, with no end in sight. About 800000 government workers, according to politicians, are essentially getting paid not to work, but their paychecks won’t come until after the partial shutdown is over. Politicians are using this plight to tug at the general public’s heartstrings in the direction of their agenda. However, every politician and almost every media outlet is ignoring truth, to avoid offending people.

The truth of the matter is: if a person doesn’t have enough money saved up for such a time as this, they suck with finances. If a family is woefully unprepared for an emergency situation, they suck with money. These are objective facts, even Biblical. However, I do not write this to shame those 800000 government workers. After all, the crocodile tears of politicians would be wholly ineffective, if the average American could not see the horror is a month’s wage deferred. American’s finances are in disarray to put it mildly. NBC News reported how majority of Americans are living paycheck to paycheck.

Though the parameters of what constitutes a livable wage varies greatly according to where you live, these staggering statistics show just how few of us have the means to make ends meet. Depending on where they live, even people who earn $100k per year say they’re living paycheck-to-paycheck, and 59 percent of people making that kind of money admitted to carrying debt. Of those 59 percent, 56 percent say they’re heavily in debt.

And that emergency stash of six month’s pay that experts keep saying we should put away? For more than half of us, it’s just not feasible. According to this survey, 56 percent of us can barely save $100 per month. All things considered, when you break it all down, most of us are just one misfortune away from financial oblivion.

Yet despite the woeful unpreparedness of most Americans to finance an emergency, Americans spend. We have the latest IPhone, subscribe to Amazon Prime, have $200 doorbells on our homes, dine at fast casual restaurants, and drink Starbucks. And despite mandatory financial literacy classes in many schools, we push young people to pursue a six figure education. A recent survey done by YCharts found that nearly two-thirds of millennials aged 22 to 37 believed that they would have seven-figure wealth by the age of 45 or sooner. While seemingly outlandish, this study presented a more optimistic view of the generation’s finances than one might expect. Though with similar spending habits as Gen Xers, it’s overoptimistic to think this generation doesn’t overspend.

We often joke about Congress not balancing the budget like normal people run their finances. Yet in a country and culture of fiscal irresponsibility, it should be unsurprising, though disappointing, that there’s 21 trillion dollars worth of debt.


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Economy

A reminder to GOP lawmakers from Justin Amash

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A reminder to GOP lawmakers from Justin Amash

When Representative Justin Amash (R-MI) hadn’t been in Washington DC for very long when he said this amazing quote. At the time, many weren’t paying much attention. After all, many Republicans say similar things when they get to DC, but over time they become jaded, corrupted, or start to get used to being in the DC Country Club.

Amash is different. He has remained consistent with his message and views throughout his career. Now, it’s time for other Republicans to remember what they were sent to Washington DC to do in the first place. Defense of the Constitution is their top priority as it’s the best protection against a government that wants desperately to control every aspect of our lives. From healthcare to the internet to how we use our energy, government intervention has become so commonplace, it’s often hard to see the fabric of our nation behind all the layers of bureaucracy that has been placed on top of it.

“I follow a set of principles, I follow the Constitution. And that’s what I base my votes on. Limited government, economic freedom and individual liberty.”

If more Republicans followed the same principles and didn’t just use them in campaign speeches, we may actually be able to return liberties that have been taken and remove layers of government that have been formed unnecessarily.


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Economy

Larry Elder, Sean Hannity discuss the shutdown

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Larry Elder Sean Hannity discuss the shutdown

Radio host Larry Elder joined Sean Hannity on Fox News tonight to break down the government shutdown. Elder pointed out that President Obama was being urged by advisers, including Rahm Emmanuel, to abandon Obamacare, but Nancy Pelosi urged him to go big or go home.

Later, they discussed the Speaker of the House’s refusal to meet with Angel Moms. Elder asked what she would say to them. Hannity said she should have given them condolences for their losses.

My Take

The talking heads on Fox News keep repeating the same narratives, but it’s not working. This is an example of mainstream media playing to the base by repeating the narrative for cheers from the crowd but failing to present better information the Republican base can use to argue for the border wall.

Many on the right, particularly in media, are failing to make a compelling case for the wall. They need to adjust their talking points if they really want their audience to help sell the idea to the rest of America.


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