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Art Laffer on why a trade deficit is a good thing

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Art Laffer on why a trade deficit is a good thing

Conservative economist Art Laffer has been preaching the benefits of free trade and understanding what the numbers behind the economy really mean for most of his life. He’s taken many progressives to school on how to truly boost the economy and has always been a harsh opponent to the leftist’s favorite trade tool, the tariff.

Unfortunately, he’s having a harder time reaching so-called conservative who have abandoned basic economics in favor of Trumponomics. The concept of free trade has been replaced in the eyes of many conservatives and most Republicans with Trump’s idea of fair trade. The result: a trade war with China that is going nowhere fast and costing American businesses and consumers billions of dollars.

As Laffer correctly points out in this quote, running up a trade deficit is an unavoidable side effect of having a capital surplus. In other words, as American consumers spend more money, American businesses make more money. As American businesses make more money, they buy more products from foreign companies. This fact seems to have slipped over President Trump’s head.

“The trade deficit is the capital surplus and don’t ever think of having a capital surplus as being a bad thing for our country.”

Tariffs on China were considered a far-left progressive notion less than four years ago when Senators Chuck Schumer and Bernie Sanders proposed them. Now that President Trump has adopted their plans down to the letter, tariffs are suddenly the GOP way.

For a better explanation, please refer to this article by Benjamin Powell from 2006. Over a dozen years later, the truths still apply.

Trade Deficit Is Really A Capital Surplus

http://www.independent.org/news/article.asp?id=1832As long as our country remains a good place to invest and we have a low saving rate, foreigners are going to invest in the U.S. more on net than we invest overseas. That will generate a capital account surplus and the resulting trade deficit. This is a good thing.

But whether the payment is to a foreigner or to a fellow citizen, the customer’s purchase still indicates that he deems himself better off from the transaction.

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Culture and Religion

After indignant virtue signaling costs billions, Gillette quietly ‘shifts’ away from social justice

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After indignant virtue signaling costs billions Gillette quietly shifts away from social justice

Social justice backfired for Gillette. Despite innumerable complaints and an exodus of customers, the razor maker remained fervently proud of their ad campaigns attacking “toxic masculinity” to the point that CEO and president Gary Coombe said it was a “price worth paying.” They’re standing by their ads and are claiming they helped them reach a younger millennial audience, increase brand awareness, and put forward the type of company message they want portrayed.

If losing $8 billion was worth the message, they’re stronger activists than most.

“P&G reported a net loss of about $5.24 billion, or $2.12 per share, for the quarter ended June 30, due to an $8 billion non-cash writedown of Gillette. For the same period last year,” Reuters reported, “P&G’s net income was $1.89 billion, or 72 cents per share.”

Despite the massive loss over the controversial ads. they claim to have no regrets. This claims were made three weeks ago and delivered with bluster in multiple interviews for damage control. This week brought a different tone as they’re now “shifting the spotlight from social issues to local heroes.”

The new campaigns have already launched in Australia with a slow rollout in the United States expected next month. Here’s the local Australian hero they’re focusing on. Needless to say, he’s not representing a social justice cause, nor is he worried about exuding toxic masculinity.

This is an unambiguous attempt to escape the controversial corner they painted themselves into that cost them billions, but don’t let progressive media know because they’re certain the social justice campaign was wonderful. They’re so certain about this that they’re blaming the loss on men suddenly loving beards. Seriously.

Companies like Gillette are learning being “woke” makes you broke. That’s how business works; alienating half of your customers for the sake of politics is never a good move. Stick to business. Leave social justice to the basement warriors.

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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Conservatism

Was the Inca Empire a successful example of socialism?

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Was the Inca Empire a successful example of socialism

As socialists pivot from one failed example of socialism to the next failed example of socialism to the welfare state that decries claims of socialism, perhaps we should prepare ourselves for when the socialist reach the bottom of the barrel with examples of the collective ideology’s past successes. And before you say, “well that’s silly, there’s no way a pre-French enlightenment civilization could have practiced a successful form a socialism, sufficient enough to use as an example by the left” consider the fact that a French academic by the name of Louis Boudan penned an extensive treatise entitled “A Socialist Empire: The Incas of Peru” in 1962.

Now, this work does not appear to be an endorsement of communism, though the author seems to have a vested interest in the using the “no true Scotsman” fallacy given that this was written post World War 2 and in the Cold War with regards to true socialism. However, the very title, provocatively named, is certainly a sign that the political Left in contemporary times could refer to the Inca as a successful example of socialism, that only fell by the technologically advantaged Spaniards. But Louis Boudan is not the only one who has made this comparison, leaving us wondering why the Left has not seized on the Inca who seem to have had a more successful run than any contemporary Marxist regime. The likeliest reason that that Inca are not used as an example of successful socialism is likely that the proponents of socialism, to be blunt, are not historically informed. Still, this is a foreseeable argument in the imminent future and we best know what we are talking about when it inevitably comes because when the Left popularizes an example of alleged socialism practiced by non-whites they will pounce, but until then we await a Vox video.

The Inca Empire could prove to be the only example of socialism that did not self collapse, other than the Catalonia socialism which lasted only three years. But of course, all of this is conditional on the premise of whether or not the Inca Empire was truly socialist country. Perhaps it would be best to grant the Left that premise. Even if the Inca were a socialist empire, the ensuing result was a constant need for war, which is a commonality with the Stalinist ideology. Kings and Generals does a good job breaking down the Inca society for the laymen to understand. Key points discussed in the video are:

  • The Inca were highly adapted to their living environment with regards to agriculture, construction, and irrigation
  • The Inca had what appears to be a welfare state
  • The Inca worshiped their dead
  • The “corporations” of dead bodies accumulated disproportionate amount of wealth
  • The wealth belonging to the dead bodies necessitated the Emperors accumulating wealth of their own through war. This cycle repeats.

As you can see, there were multiple flaws in the Inca society that had a trajectory of collapse because of the pyramid scheme the system creates for its ruling class. The inevitable demise was expedited by the Spaniards. But going back to the foundational premise as to whether the Inca were socialist or not, the contrasts are enough to fail a purity test; had there been an organic collapse, the modern socialist would deny this as true socialism. It’s a never ending fallacy, though the dead corporate estates of the Inca goes against everything socialist preach. However, as human history has shown, socialism has always led to the personal enrichment of those in the innermost circles of power. Socialist or not? You decide, but be prepared to argue that the Inca were not a successful example of socialism.

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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Economy

Steve Hilton: While Trump haters pray for a recession, the real economy is booming

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Steve Hilton While Trump haters pray for a recession the real economy is booming

Americans believe in the Trump economy. It’s been helping them get jobs if they’re unemployed and better jobs if they were underemployed. It has raised wages, reduced taxes, and increased consumer spending to all-time highs. Even if you’re like many Americans who do not care about the stock market, Wall Street’s effects on Main Street are felt.

But if you listen to mainstream media, you’re likely hearing a different story. The fearmongers are actively attempting to crash the economy in hopes of using a recession against the President when the 2020 election rolls around. It’s disgusting when consider millions of Americans would be hurt by such a move, but the people pressing this false narrative are the same people who will be able to easily survive it. If their families relied on the prosperity the Trump economy is allowing, perhaps they’d think twice.

As Fox News host Steve Hilton pointed out, reality is not matching the narrative being pushed by the left. The more people are aware that recession talks are fake, the less likely they’ll become a self-fulfilling prophecy.

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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