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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.

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Economy

Thomas Sowell makes a clear point about Medicare-for-All

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Thomas Sowell makes a clear point about Medicare-for-All

How was the left able to take heat away from their Medicare-for-All proposal, and more specifically the estimated $32 trillion price tag over a decade? They tripled down with the Green New Deal, which some estimate would cost upwards near $100 trillion.

So, the price tag of the Democrats’ desired replacement for utterly failing Obamacare is to take current government control over healthcare and put it on a regiment of steroids and methamphetamine. When you’re going through Hell, keep going, I suppose.

But all of this could be alleviated if voters and politicians took a moment to think about the prospects of Medicare-for-All logically. Let’s erase, for a moment, the Utopian notion that taxing rich people extreme amounts will give us enough money to make healthcare free for everyone while also improving the quality. That’s the goal, right? Cheaper, better healthcare is what most people want. Conservatives believe it’s best to pull government administration out of the equation and put it all on a competitive capitalist model that has worked for nearly every other industry for over a century. Hyper-leftists want to add more government control.

Conservative commentator Thomas Sowell has some thoughts on the matter. One in particular can be wrapped up into an eloquent quote that should be ideological checkmate allowing us to win the healthcare debate.

“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.”

Of course, our version of checkmate requires common sense, logic, and basic math skills. These attributes aren’t as readily present on the left, therefore they might hear this logic and still think single-payer makes sense.

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Democrats

Bernie 2020, the union: How organized labor is the latest play for primary points

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Bernie 2020 the union How organized labor is the latest play for primary points

When one Democratic candidate goes to the left, the other candidates lurch to match. We’ve seen it in support for the Green New Deal, Medicare-for-All, and super-high tax rates for the rich. We’re about to see it in regards to organized labor as Bernie Sanders’s campaign has become the first group in presidential campaign history to form a union.

My Take

Whether this was a decision by campaign leadership to demonstrate their boss’s leftist credibility or of they’re simply being the leftists that they are, we can’t be sure. In fact, we’ll almost certainly never know. Either way, it’s done and now all of the other leftist campaigns have to respond.

Expect every major campaign team to unionize soon. It’s not because it will make them more effective. It won’t help them get better benefits or retain their jobs for longer term since the organization will fundamentally change following the election. All it will do is allow them to make the claim they’re so pro-union, they’re willing to accept the lost productivity associated with organized labor.

This is quickly becoming the most symbol-driven primary election season we’ve seen in decades, perhaps ever. It would all be very entertaining if it weren’t so dangerous to the American psyche.

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Economy

Busted: The myth that old 90% tax rates actually worked

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Busted The myth that old 90 tax rates actually worked

One of the favorite tactics for the new Democrats to push their idea of super-high taxes on the rich is to invoke Dwight D. Eisenhower. They say even a Republican President once believed in high taxes on the rich, a time in which the highest tax bracket was 90%.

John Stossel an economic historian Phillip Magness debunked the myth that rich people actually paid the extreme tax rates of the past in this video. As usual, Democrats have selective memories when it comes to anything they want to press.

Back in the days of high taxes for the rich, there were enough loopholes intentionally left open for them to cut their actual tax rates tremendously. According to Magness, the actual average rate paid by millionaires back then was around 41%. With fewer loopholes available today, the highest tax bracket of 37% is close to what is actually paid by those earning the most money. But what would happen if the high tax rates of the past were combined with the lack of loopholes of today? We’d have an economic collapse that would hit so swiftly, there’s no way Democrats would have time to react.

The bottom line is this: the best producers in America will no longer have an incentive to produce here. Some would leave. Others would simply stop producing. It’s easier for them to reduce their revenue and live off their accumulated riches than to earn money for the government to take. Even at a “more reasonable” 70% tax rate, as proposed by some of the top Democrats today, the increase would be too great for most wealthy Americans to bear. We saw this play out in France. We could see it play out here if the Democrats get their way.

Fighting the talking points of the left is one of the biggest reasons conservative sites like NOQ Report exist. We call on those who want to help prevent the rise of socialistic ideas to contribute to us; as a news outlet that is crowdfunded, you’ll notice a conspicuous lack of spammy ads that you find on other sites. This is intentional and allows us to reach a broader audience with the conservative truth.

Democrats love pretending like raising taxes on the rich will solve all of our problems. They know it’s not true, but it certainly sound good in campaign speeches. This isn’t really a tax grab. It’s a power grab designed to confuse the people.

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