• Monthly
  • $25
  • $50
  • $100
  • $other
  • use PayPal

SPRING FUNDRAISER

Is it time for our Spring fundraiser already? If you enjoy what we offer, and have the means, please consider donating. The sooner we reach our modest goal, the faster we can get back to business as (un)usual. Please, stay safe and we’ll see you down the road.
FacebookTwitterRedditEmail

Trump’s “Trade War” is a War on You

“It’s not China that pays tariffs,” Fox News Sunday host Chris Wallace pointed out on May 12. “It’s the American importers, the American companies that pay what, in effect, is a tax increase and oftentimes passes it on to U.S. consumers.”

“Fair enough,” answered Larry Kudlow, head of US president Donald Trump’s National Economic Council, before trying to explain that indisputable fact away.

As Trump continues his “trade war” with the rest of the world (but China more so than other countries), more and more Americans are beginning to understand what’s happening here:

Punitive tariffs on Chinese and other foreign goods are simply corporate welfare. They are a mechanism for redistribution of wealth from American consumers and workers to the most politically connected American business owners. Those businesses can charge more for their product and still remain “competitive” because their product doesn’t have that extra tax levied on it.

In theory, some of that corporate welfare “trickles down” in the form of new jobs for Americans in those particular businesses. That effect seems to be more hype than reality, but even to the extent that it exists, it doesn’t create greater general prosperity. The “new jobs” are an artificial sugar high. Everyone else gets just a little bit poorer for each “new job” thus created.

As the late, great Henry Hazlitt pointed out in his classic Economics in One Lesson, it’s important not to ignore the unseen in favor of the seen.

When we are forced to pay more for one thing (steel, for example), we have less money left to spend on other things (shoes or groceries, for example). Protectionist politicians vigorously direct our attention to every “new job” their policies artificially create at our expense, while hoping we won’t notice the “old jobs” our decreased wealth eliminates (or makes less lucrative) in other industries.

That’s not the only way protectionism makes us poorer. Those artificially created “new jobs” also distort the labor market. They shoo workers away from enterprises in which their efforts are most naturally profitable to them, to their employers, and to the consumers of their product, into enterprises where the profitability is an expensive illusion created at their own expense and yours.

Trump’s “trade war” is indeed a war of sorts, powered by economic sanctions like those levied on Iran and North Korea. But the economic bombs he’s dropping are landing on American, not Chinese, heads.

More articles by:

Thomas L. Knapp is director and senior news analyst at the William Lloyd Garrison Center for Libertarian Advocacy Journalism (thegarrisoncenter.org). He lives and works in north central Florida.

May 25, 2020
Marshall Auerback
If the Federal Government Won’t Fund the States’ Emergency Needs, There is Another Solution
Michael Uhl
A Memory Fragment of the Vietnam War
Anthony Pahnke – Jim Goodman
Make a Resilient, Localized Food System Part of the Next Stimulus
Barrie Gilbert
The Mismanagement of Wildlife in Utah Continues to be Irrational and a National Embarrassment.
Dean Baker
The Sure Way to End Concerns About China’s “Theft” of a Vaccine: Make it Open
Thom Hartmann
The Next Death Wave from Coronavirus Will Be the Poor, Rural and White
Phil Knight
Killer Impact
Paul Cantor
Memorial Day 2020 and the Coronavirus
Laura Flanders
A Memorial Day For Lies?
Gary Macfarlane – Mike Garrity
Grizzlies, Lynx, Bull Trout and Elk on the Chopping Block for Trump’s Idaho Clearcuts
Cesar Chelala
Challenges of the Evolving Coronavirus Pandemic
Luciana Tellez-Chavez
This Year’s Forest Fire Season Could Be Even Deadlier
Thomas Hon Wing Polin
Beijing Acts on Hong Kong
George Wuerthner
Saving the Lionhead Wilderness
Elliot Sperber
Holy Beaver
Weekend Edition
May 22, 2020
Friday - Sunday
Hugh Iglarsh
Aiming Missiles at Viruses: a Plea for Sanity in a Time of Plague
Paul Street
How Obama Could Find Some Redemption
Marc Levy
On Meeting Bao Ninh: “These Good Men Meant as Much to Me as Yours Did to You”
Jeffrey St. Clair
Roaming Charges: Shallò: 120 Days of COVID
Joan Roelofs
Greening the Old New Deal
Rob Urie
Why Russiagate Still Matters
Charles Pierson
Is the US-Saudi Alliance Headed Off a Cliff?
Robert Hunziker
10C Above Baseline
Pam Martens - Russ Martens
The Fed’s Chair and Vice Chair Got Rich at Carlyle Group, a Private Equity Fund With a String of Bankruptcies and Job Losses
Eve Ottenberg
Factory Farming on Hold
Andrew Levine
If Nancy Pelosi Is So Great, How Come Donald Trump Still Isn’t Dead in the Water?
Ishmael Reed
Alex Azar Knows About Diabetes
Joseph Natoli
Will Things Fall Apart Now or in November?
Richard D. Wolff
An Old Story Again: Capitalism vs. Health and Safety
Louis Proyect
What Stanford University and Fox News Have in Common
Pete Dolack
Work is Inevitable But its Organization is Not
David A. Schultz
America and the Rise of the Chinese Century
Ramzy Baroud
Why Israel Fears the Nakba: How Memory Became Palestine’s Greatest Weapon
Heather Gray – Jonathan King
Coronavirus and Other US Health Threats? Fund Public Health Not Foreign Wars
Brian Cloughley
Don’t Be Black in America
Kenn Orphan
A Pandemic and a Plague of Absurdity
Matthew Stevenson
Our Friend Eugene Schulman
Richard C. Gross
The Man Who Cried Wolf
Ron Jacobs
Road Trippin’
Robert P. Alvarez
A Simple Solution for the Coronavirus Crisis in Prisons
Aadesh Ravi
The Long March of the Locked-Down Migrants
Kollibri terre Sonnenblume
The Proliferation of Conspiracy Theories & the Crisis of Science
Nilofar Suhrawardy
The Other Side of Covid-19
Binoy Kampmark
Battles Over Barley: Australia, China and the Tariff Wars
Cesar Chelala
Donald Trump can Learn Something from Mao Zedong’s Mistakes
FacebookTwitterRedditEmail