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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.

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Economy

Stossel: Minimum wage hurts beginners

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Stossel Minimum wage hurts beginners

One of the greatest lies ever told in modern American politics is that raising the minimum wage will help more people than it hurts. There’s no doubt that some people will not lose hours from their increased wage, but many will. Some will lose their jobs altogether. And others will not be able to enter the workforce even though they could have with a lower minimum wage.

These truths are clear from the handful of experiments tried around the country in places like Seattle and New York. In fact, one of the biggest proponents of the $15 minimum wage, Representative Alexandria Ocasio-Cortez, was saddened when her former employer shut down despite being extremely popular. The reason: forced minimum wage hike.

In this video by John Stossel, he explores some of the drawbacks of a higher minimum wage. There are clear economic indicators that it’s a terrible idea, but leftist populism and surface-level economic policies are hard to counter.

Trying to force people to think critically is a challenge, but it’s one we must continue to undertake. As long as the left pushes ideas that seem good on the surface, they’ll get votes from the uninformed. It’s our job to inform them.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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Democrats

Elizabeth Warren’s wealth tax won’t work

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Elizabeth Warrens wealth tax wont work

There’s a popular sentiment that’s present in many circles across America. The “rich” are the bad guys who plot against the common American to keep us down. In some cases, this is actually true; wealth has been used by many throughout history to buy favors, subvert prosperity for the economic middle- and lower-classes, and steer governments to do things that benefit them while hurting others. But corruption is much less of a driving force for the hatred towards the rich than envy. Few people would take the “moral high road” and turn down opportunities that would allow them to be rich. Just ask Bernie Sanders.

But this envy of the rich is manifesting into something much more dangerous than we’ve seen in the recent past. Senator Elizabeth Warren, a top contender for the Democratic nomination for president, has built her campaign around offering as much free stuff as possible and claiming that she’ll pay for it all through her wealth tax, which she currently proposes as 2% on any household with more than $50 million and 3% on any household worth more than a billion dollars. It’s a yearly tax that is designed to help her get elected. It isn’t designed to work, and either she knows this but hopes the people won’t see it, or she doesn’t realize it and she’s an idiot.

Wealth taxes have never worked. They hamper the ability of actual job-builders to build jobs. They also incentivize the rich to take their money elsewhere, which has a cascading effect on the economy when done in bulk. But perhaps most importantly is that the revenues projected to be generating from them never come to pass.

The saddest part is based on Warren’s own calculations of how much revenue she’ll generate compared to non-partisan estimates of how much her proposals will cost, it isn’t even close. We’re not talking about being off by millions, billions, or even trillions. If she gets her way, we’ll experience a budget shortfall of tens or even hundreds of trillions of dollars over a decade. This isn’t insignificant, but it may be part of the plan.

Who would plan for economic collapse? Someone who wants to install Modern Monetary Theory in America. That’s the only realistic conclusion that one can come to unless we’re to believe she’s a total liar. And that’s possible. She could be so eager to be a one-term president that she’s willing to make promises she knows are impossible to keep. But more likely, she’s going to try to keep those promises by taking us down a path in which we print money to pay our bills, leading to hyperinflation and the total collapse of the United States of America as a viable nation.

If that happens, she’ll have the ultimate form of socialism in which everyone is suffering equally. Well, everyone other than the elite.

This video by Reason breaks down other examples of hour Elizabeth Warren’s proposed wealth tax is either based on ignorance, deceit, or both. Her calculations are off by a few decimal points, but in a post-truth society, Democrats don’t care.

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Democrats

Rashida Tlaib says $15/hr minimum wage is too low. She wants $20/hr.

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Rashida Tlaib says 15hr minimum wage is too low She wants 20hr

There is nothing more progressive than taking something radical and destructive and doubling down on the spirit of the proposal. That’s what Representative Rashida Tlaib did today when she said the movement that’s pushing for $15 per hour nationwide may be behind on the times. $15 per hour is what whey needed before, but since the costs of milk and eggs have gone up, the new minimum wage should be $20 per hour.

It has already been established by the non-partisan CBO that $15 per hour would kill off 1.3 million jobs. While most Democrats balked at the number and said it was too high, the radical progressives saw it as an opportunity – there’s plenty of room to kill off even more jobs, from their reckoning.

Costs of many items are going up, but as the Washington Free Beacon pointed out, eggs and milk are actually lower than their peaks in 2015 and 2014, respectively, around the time when the “fight for $15” started ramping up. As usual, Tlaib is making things up to support her points.

The real minimum wage is zero, as anyone unemployed knows. But jobs have been rising across the board since the President took office. The economy is humming. In many industries, there is a shortage of workers able to fill positions, forcing many companies to raise wages organically. That’s how it should be. We don’t need Washington DC placing a blanket minimum on the country, especially considering the economic norms in West Virginia are very different from the economic norms in California. Leave it to the states to regulate the economies properly.

This is just further evidence that Rashida Tlaib and “The Squad” aren’t interested in helping America. They want to tear it down and rebuild it in the Justice Democrats’ image. This is no longer a secret, but it’s an under-reported fact.

We are currently forming the American Conservative Movement. If you are interested in learning more, we will be sending out information in a few weeks.

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