Category: Economics

Categories
Economics Fighting Back

Yes, it’s been

a good move. Trump has indisputably made things a lot better, here. Doofy, nattering Lefty idiots notwithstanding.

“They have come to us with very good offers, and what I will tell you is that, in negotiating with some of them, they may not like the tariff wall that President Trump has put up. But they have them, so if tariffs are so bad, why do they like them? And then more insidious, we can see that from a practical matter and from academic research, are the non-tariff barriers,” Bessent said. [emphasis added]

Please understand, Trump’s obvious preference is to have no tariffs on either side–that makes the most economic sense. But these are in response to what other countries place on us–they are reciprocal and retaliatory tariffs! They are not an end to themselves, they are a response to tariffs that other countries place on US.

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Economics Wisdom

Are tariffs bad?

Well, yes, but really only in the abstract. I agree, in the faculty lounge they are not very defensible. But in real life, they are a wonderful way of using a carrot/stick approach. And we have seen proof of that in many other nations recently coming to us and wanting to form a free trade alliance. Even Britain has very recently negotiated a deal with us. And all that is far from abstract.

I agree that in an ideal world, there would be no tariffs. But we don’t live in an ideal world, so what now? We have a bunch of nations who have charged us exorbitant tariffs for years, and we have charged them very little or nothing. The result has been to destroy manufacturing in the United States. That approach has certainly pleased the economists, but really has not worked out very well for the nation, or for American workers.

OK, so what do we do now? Because other countries are already charging us large tariffs. And that has crippled industry here. So do we now just hold to some esoteric ideal and unreal world scenario and not charge on goods coming into our country while paying big tariffs to others?

So tell me, Democrats. What would you recommend, and why?

But just how is the current arrangement to our benefit? What Trump has proposed are retaliatory tariffs. Not ex nihilo ones. Democrats, you have to look a little beyond your Trump hatred…

The truth is, Democrats rarely know crap about the economy. RINOs are often at least as bad. Both of them are absolutely not a good source of ideas about what to do.

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Economics

I think many people

just don’t know much about international trade (the extent of their experience is having eaten at the International House of Pancakes once when driving through Las Vegas), and so wig out about Trump’s tariffs. But we didn’t start the trade war.

So the brilliant Thomas Sowell is totally correct about how tariffs are harmful–in the abstract. But what was NOT clear in the little video blurb that was circulated, was if he understands that many countries have already imposed aggressive tariffs on the US, and now it is time for us to respond, after laying supine and cringing for many years! He probably does.

So the question is NOT whether we should start imposing tariffs ex nihilo onto what was a level playing field. No, the question is how we respond in the face of punitive tariffs that other countries already have in place! THAT is a totally different question. And there is a different answer to it.

For example, Argentina’s President offered to have NO tariffs on US commodities if the US dropped all tariffs on what Argentina exports to the US. Trump was fine with that. In other words, it is not the tariff itself that is the driving issue, it is exploitation of the American worker!

And MANY (especially Democrats and Democrat-adjacent folks) have ignored that or are totally unaware. A bigger picture tells a much different story!

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Economics

Yes, in some ways

the tariffs are “tit-for-tat. Yes, but let’s not be ignorant of the fact that we are responding to their “tat.” Other countries (like China and even Canada) have egregious tariffs on US products. And we are supposed to just ignore that? These tariffs that Trump is imposing are merely retaliatory. This did NOT start from zero! And countries have a way to negotiate different tariffs. And many have!

So all you armchair economists, help me understand why it is good for us to tolerate an uneven playing field and to sacrifice American workers on the altar of global trade.

Go ahead, I’ll just wait for your answer…

My sense is that 95% of the critics don’t know diddley-squat about international trade, and are just aping others–letting their Trump hatred flow through them rather than looking at the actual facts. Their only expertise in international commerce is that they once ate at the International House of Pancakes.

My bet is that 5% actually DO know, but there are aspects about it that they don’t know, which, of course, very much changes things…

I’m not a fan of tariffs, economically speaking. But it is one thing for one side to unilaterally impose tariffs, and quite another to start imposing tariffs on countries who already impose them on us!

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Economics Wisdom

Huh, I guess

tariffs work after all!

Now granted, these are not tariffs as we usually think of them. This is not an increase in monetary penalty designed to protect a struggling domestic industry (though that could be a secondary effect).

No, this is “Either you do what I say, or I slap a tariff on you. And then we will see who caves first.”

In short, for Trump a tariff is a weapon of diplomacy, not primarily an economic act. And therefore it is not subject to all the usual economic factors that are involved with tariffs. In fact, the word “tariff” is not really all that accurate in many senses. And in fact they are exquisitely tailored to each situation. Maybe there is not a better term. But it is certainly not a traditional tariff. It is simply a carrot and stick approach to International relations.

So when you hear economist wig out about Trump’s “tariffs,” just know that they are spectacularly wrong and don’t understand what Trump is doing. They need to step back a little and get a broader picture. Maybe they are just jaded and merely Trump opponents.

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Economics Fighting Back

VDH is truly

awesome! Follow the link and listen to his 8-minute explanation. It is great.

The short synopsis is that Trump is using tariffs, not in their historical role as a way protect a vulnerable US industry, but as a cudgel with which to beat our enemies in retaliation for their bad behavior toward us. Yes, they are called “tariffs.” But they are not really tariffs in the way that is usually thought of.

It is more “encouragement” than a traditional tariff. In the world of carrots and sticks, this is a stick, with a carrot built into the back end. This is why the traditional economists have it all wrong.

This is not a way to protect a vulnerable US industry. This is a way to punish those who are not acting fairly. It has nothing to do (except obliquely) with any particular industry. It’s not really a “tariff” as we usually think of it.

It is merely a diplomatic weapon. And an extremely effective one, at that.

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DUH! Economics

Oh, surprise, surprise!

It turns out that conservative economic policies really are a lot better. This is no fluke. It has happened over and over and over again. You would think that Democrats would get a clue, here. But no.

Here’s the bottom line: Democrat economic policies totally suck. The data are incredibly clear about this. Unfortunately, many Democrats successfully (for themselves) fight back against the data with willful and determined ignorance.

Maybe it’s time for Democrats to admit what the rest of us have known all along: their economic policies failed miserably, and Trump’s America First approach delivers results for working families. But don’t hold your breath waiting for that admission — they’re too busy planning their next round of failed talking points. 

Regular people who vote Democrat: You need to get a clue!

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Captain Obvious Economics Lefty Squalor

The data-driven

argument is over, isn’t it, Lefties? I mean, we KNOW without a doubt what works economically, and it sure ain’t Leftism!

You know, I think it’s a real problem for the Left. What they were saying was totally unconvincing before. But now there’s just no way to put lipstick on that pig and pretend it is a supermodel. I think people are good intent and good sense are seeing very clearly that the Leftist economic policies stink.

Look, that is not the way to go! And it is no longer possible to reasonably argue otherwise. It’s over, Lefties. The actual data have never favored you, but you were able to twist and turn and do the Lefty shuck-and-jive for a long time. But now the evidence is overwhelming.

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Captain Obvious Economics Lefty Political Strategy

The data are

in. Face it, Leftists, your economics totally sucks. It’s not even arguable anymore. Only your hidebound rigidity keeps you from seeing that.

Only a dang moron doesn’t recognize that fact.

Which is why Leftists hate Trump AND Milei so. They put the lie to Lefty economic theory, If the conservative economics Trump and Milei espouse leads to prosperity, they are screwed. They had to do all they could to keep Trump from taking office in order to not be publicly humiliated.

So they tried. Hard! But it didn’t work. So now they are on to the next phase, which is keeping Trump from putting his cabinet in.

And they are gonna keep doing all they can to wreck the economy. Please understand that they simply can’t afford for things to get better. It would expose the Emperor as having no clothes!

If I were a betting man, I would bet that Democrats will accuse Trump of some new and horrific crime within a year. Maybe six months.

What other choice do they have?

LOOK, A SQUIRREL!

Categories
Captain Obvious Economics

Honestly, you’re

either stupid or hopelessly hidebound if you ignore this. Lefties HATE Milei because he has shown how it’s done, and it is categorically opposite of a Lefty approach.

“You’re my favorite president!” Donald Trump reportedly told Javier Milei. Milei was the first foreign leader to meet the president-elect in person after the election and is one of Trump’s most dedicated allies, despite the fact that in many ways their political philosophies are nearly as divergent as can be. The Argentine maverick, who shares with Trump a distinctive head of hair, has accumulated an international fanbase for his almost miraculous accomplishment of pulling Argentina back from the brink of hyperinflation and complete economic devastation.

… Nevertheless, the shock therapy worked: Monthly inflation fell from the disastrous 25.5 percent in December 2023 to 20.6 percent in January 2024, then to 13.6 percent in February. The successful reversal of the inflationary trend kept him in the confidence of the Argentine populace: he has maintained his high popularity throughout his presidency, despite the sometimes severe costs that his methods have imposed. And that confidence has been well repaid. At the time of writing, monthly inflation has fallen to just 2.7 percent, below the average Argentine inflation rate since 2000, poverty has declined back to the December 2023 levels, and the economy is projected to grow an astronomical 8.5 percent next year.

The way forward is pretty dang clear to even the dullest among us. And Milei has shown that his policies are correct. Again, that is why the Left hates him so!