No New Tariffs: Told You So

I AM NO MORE A FAN OF TARIFFS THAN ANY OTHER RIGHT MINDED CONSERVATIVE IS. Tariffs are bad, we all know it. So, you would think when I first heard President Trump utter the word "tariffs," I would have immediately and rightly cringed.

No sir. Don't do it. PLEASE don't do it. You will destroy every single economic gain you have achieved.

But I paid close attention to what Trump was actually saying. You had to dig deeper into the context of Trump's language to fully understand what the aim was here.

President Trump did not want to impose tariffs. What he wanted to do was bring some of these other countries, whom with we have serious trade deficits with, to the table to negotiate. 

You have to start somewhere. And for him, the place to start was to simply say, "Look, we have the economic might and power and we also have a very strong and robust consumer base that you (these other countries) have a strong desire to be able to gain access to. You are going to want to work with us to level the playing field a little bit."

More dollars in the American economy by providing more jobs to Americans also ultimately offers an opportunity to create more buyers for foreign made goods.

I had a strong, sinking suspicion that we would not see the tariffs Trump was supposedly wanting to impose. That sinking suspicion is even more now after the USMCA announcement which will replace NAFTA provided the three congress's can ratify it, and the announcement that Trump will delay raising Chinese tariffs for 90 days while more negotiations are underway.

The tariffs aren't coming, folks. Not from what I can see. And this will only further bolster the economy and lay more groundwork for increasing American jobs, increasing access to these other countries' consumers, and so the wheels of commerce will turn.

Everybody involved will see a benefit here. Everybody.

The Danger of Talking Points in Elections

Democrats and liberals will often utter talking points, which on the surface sound fine. But rarely do they think through what the effect is ultimately of any of it. They simply drop their line, smile, and walk away feeling there is no reason to further explain. This is especially dangerous when these talking points are actually acted upon by our elected officials.

Take this democratic talking point as a case in point: "Everyone should have the ability to own a home."

On the surface it sounds wonderful and fair. Owning a home is the dream of a good many Americans, and in communities where people own their homes, the communities generally tend to thrive since there is a tighter bond between the real estate and the person who occupies it.

This talking point, and the action that was taken in support of it lead to the biggest financial decline in recent history and nearly caused an economic collapse.

Sure. The blame was placed on the big banks, Wall Street, and the rich. But the truth is that while there is some blame to lay there, a larger part of the blame lies on the politicians who signed into law the opportunity for people who could not otherwise afford homes to have them anyway.

Let's keep in mind that what the banks had to do in order for this to be possible was to have to take on enormous amounts of risk of capital. In answer to that they created credit default swaps and took on other measures which could not truly be valuated when all was said and done. When loans were called, no one had the money to pony any of it up.

Therefore the system fell apart.

The current lineup of democrats on the stage vying for the presidency are all spouting off talking points, and not a single one of them are backing up what they are saying, or explaining how they intend to do any of the things they say they want to. Americans are lapping it up like fresh milk to a cat. Granted, there are a handful of republicans doing the same thing. The difference is that most of the republican candidates are actually explaining how they intend to get something done, and stating the reasons behind why it must be done.

The key behind, for example, how the republicans intend to fix the economy? Jobs. And in one particular case, putting to task those countries that have for years siphoned off good jobs and unleveled the playing field when it comes to trade. Republicans know, and history shows clearly, that when Americans are working, and when the middle class is viable and strong, the economy thrives.

As for the democrats, they want to attack the so called evil rich who are simply counting their change and leaving everyone else behind with evil grins on their greedy faces. "Tax the fat cats. Pay their fair share. Close the gap between the rich and the poor."

The truth is that while this sounds fine on the surface, and I can certainly see where a good many Americans might be on board with this idea, it is a completely dangerous and counterproductive path to take.

When is the last time you received a paycheck from a poor man?

The rich are hard working people who build businesses and innovate products to sell to consumers not just here, but abroad. They are the machine that drives jobs which provide for the welfare of Americans. Yes the idea is to maximize profits. Sure, the playing field is a bit uneven. Yes the corporations have as much to be blamed for when it comes to how we lost those jobs as the government is to blame for opening trade in ways that allowed for it to happen, and which all but took away America's competitive edge, especially in the case of manufacturing. The heart and driver of the middle class in America.

What the republicans want to do is to restore manufacturing in the United States, and make it harder for countries like China and Mexico to provide cheaper labor which hurts American jobs. The republicans want to remove things like Most Favored Nation status and reinstate tariffs which were designed to even things out—a tariff on goods coming from China, for example, puts the cost of their products on par with the cost of making things at home in the U.S. Lacking a strong incentive for American businesses to get labor from China, they'd be more inclined to keep their shops open right here at home and keep Americans working in them at good and competitive wages.

The main thrust of this post is that at the end of the day as we approach the 2016 elections, we need to be paying attention to what is being said on both sides of the aisle. We need to not only hear the talking points. We need to be able to see the forest for the trees. We need to be able to read between the lines. We need to be able to consider the consequences—intended or unintended—when it comes to any decisions that might be made in consideration of what sounds good. As well, we need to fundamentally understand what has driven down our economy, and our standard of living. It has not been the rich. It has not been tax loopholes. It has largely been trade policy which has allowed for companies to provide jobs abroad and leave Americans behind, unable to compete. I will be fair and say that the republican party is largely to blame for this. But the fact is that they now see the harm it has done and want to set it straight while the democrats simply want to take from the rich to redistribute wealth without considering the impact of that, and without considering the benefits to restoring manufacturing, and restoring good paying jobs and the middle class to rebuild the country economically.

Why are the democrats so hell bent on focusing on welfare programs instead of jobs?

Because it equals more power for them to push their agendas through and hold the American people hostage. Americans who have more, have more power and control over their lives. Americans who have less become dependent on what the government can provide, and so the power is given to them, and the power of the American people erodes.

We are at a critical time in our nation's history. In order for us to get back on the right path, I think we need to stop listening and adhering to the talking points. We need to begin to dissect the talking points in a way we haven't done in a long while and begin to really get at the root of how we make America great again.

Buying American Made Is Easier Than You Think

Every time I bring up the idea of buying more American made goods in order to help supply more cash to the American economy, and encourage businesses to identify demand for goods made in America, and essentially increase efforts to manufacture their products here, and provide more jobs to Americans who still are hard pressed to find meaningful work that pays workers good wages, I get met with dissent.

"Things cost too much to make it here," people say. "American companies cannot compete with lower wages in other countries."

I tend to find these accusations to be false. It sounds good. It's certainly what we have been led to believe by not only the companies who make things, but the government has touted this often as well, and always like to bring up the idea that this is a global economy, and that commerce with other countries is vitally important to the American economy and her people.

Yet the largest employer in the United States is currently Walmart, unemployment remains at considerably high levels, median income is down by nearly $4,000 per year per American, and for the last 30 or so years wages in America for the average worker has either declined, or been stagnant. The middle class is on their death bed, and the gap between the rich and the poor is ever widening.

The fact is that there are still things made in America, and they don't necessarily cost more than goods made elsewhere. It just takes a little extra time to look for things made here. Among some things still made in America, aside certain makes and models of automobiles, are socks, outdoor grills, water heaters, dishwashers and other appliances, plastic containers, glassware, cutlery, shoes, and many other items that people generally have a use for.

Consider something here that I find interesting. That is that there are approximately 300 million people living in America. If each and every American bought just $365 worth of American made goods, this would pour approximately $109.5 billion dollars into U.S. manufacturing. Not only would this provide an incentive for American companies, and even foreign companies, to do business here and employ Americans, but this would also assume that more money would be able to be collected by the IRS. More people working, making higher wages, and essentially having more buying power in the real economy means less people on the dole, less requirement for the government to engage in social programs which cost taxpayers huge dollar amounts, and at the end of the day this means more people able to afford any premiums that may be associated with American made versus foreign made goods.

In America it was fine at one time to think about benefits of globalization. Unfortunately I think we are seeing the proof is in the pudding that what globalization has largely done has been to cost Americans much needed work, benefits, and higher wages, and has forced Americans more than ever to struggle through their own financial woes with less ability to provide for their families and pursue their dreams, desires, and goals.

It's just $365 a year in American made goods. This generates $109.5 billion of revenue for American manufacturing. I think getting to a point where we think more and more about the importance of making things here, the more opportunity Americans will have to have to find American made products, and the easier it will be to slowly inch our way back up to doubling, and even tripling these numbers pouring into the American manufacturing sector of our economy.