Posts Tagged → trade
Fair trade, not free trade
When I ran for Congress (at that time the PA 10th inhabited by Democrat Tim Holden, which included about all of Schuylkill County and parts or all of Berks, Lebanon, Dauphin and Perry counties) in 2009-2010, I remembered and repeated a phrase from my long ago 1980s political activism days in Centre County – Fair trade, not free trade.
Despite being fifteen years ago, this phrase caught on with our voter audiences. They really liked it, and many voters I met while campaigning had personal stories about their family’s various jobs in then-shuttered factories. And I was reminded of watching a high tech glass and industrial mirror factory close up shop in State College, PA, around 2000. It was the old Corning branch there on the Benner Pike. Literally sat there and watched the workers carefully, lovingly package up their machinery for its trip to the “new” factory in China. Some of the workers went over to train their Chinese counterparts, before returning to State College without a job.
Funny thing that President Trump’s tariff policy amounts to this exact summation of the more or less running bank account that every responsible nation keeps with all other trading partners. The fact that only most nations are tariffing American made goods at high rates, while enjoying very low tariffs on their products imported into America, is a sign of what ails us Americans: We think we can give give and give away everything we have, and we are too big to fail from it all. Which is nonsense.
Interestingly, we see the same argument about illegal immigration and endless government spending: No limits, America must take and absorb all of the costs that the world places on us…Everything is “free free free” except, of course, it isn’t free. These policies come with huge costs to Americans.
Free trade, as in giving away our trade imbalances for free, which enriches everyone else and impoverishes Americans, is a sign that our policy makers and indeed our own voters falsely believed that America is such a huge fountain of bounty and wealth that it can endlessly sustain this. What a silly and dangerous fantasy.
Sending our factory jobs, indeed our actual factories with all of their equipment and machinery, abroad to be re-born in China, Vietnam, India and elsewhere was nuts. It sent our means of production, our workers, our jobs, and our money out of America. All America got in return was maybe cheaper and junkier versions of what we had once made here, at a high quality. And yet this “free trade” thing picked up steam as big American corporations and their pet politicians began to take on a global view of trade. No longer were companies based in Delaware “American.” Rather, many of these companies’ senior leaders considered them to be global citizens that just happened to find a perch in America.
This off-shoring of everything America makes, grows, produces went on unchecked for a good thirty years, until everyone began to notice the downside, the cost. Just about every East Coast and Mid West state now has its own “rust belt” area. Areas filled with hulking, empty brick buildings and over-grown parking lots next to rivers and highways tell the sad tale of America’s economic downfall, and our nearing ruin.
Sure, we had a lot of government spending in the past twenty years to temporarily make up for the job losses, the depressed wages, the looming home foreclosures. But that spending is unsustainable. It is “robbing Peter to pay Paul.” It is simply printing Dollars for the sake of printing them. Less and less stands behind them. And yet someone standing way back there in the background was making a ton of money off of this screwy policy, while the rest of us Americans lost from it.
And so now we have a bold and very natural pro-America policy, the equalization of tariffs, making trade fair, not free, and the whole world is suddenly going upside down. My 401(k)! My dog’s retirement account! Oh my God, what will happen?
Folks, relax. Do a bong hit or have a glass of red wine. Our American world is not only not going to end, it is going to return to our glory days. Yes, it takes time, it will take time, so don’t be a bunch of prissy little Gen Z weenies demanding immediate gratification. America is worth fighting for, and these dueling tariffs are the opening salvo. Round One.
You know what is kind of oddly funny about that Fair trade, not free trade slogan? As apt as it is right now, I got that from some 1980s Centre County union workers, which trade or factory or coal mine they were in, I no longer recall. But they were right. And Trump is right. And we Americans are all aligned together on this to Make America’s Economy Great Again…
All together now, breeeaaathe…
No pain, no gain
The old gym motto “No Pain, No Gain” applies to the much-needed economic shakeup the Trump Administration is bringing to the entire planet. If we Americans do not put up with a little temporary pain and necessary readjustment now, for our own good, then we will enjoy no huge gain later on. It takes work to then earn and enjoy resulting benefits.
President Trump’s promise to American citizens was that he would return us to glory days, a golden age, which we richly deserve. Trump is correct that America has been the world’s piggy bank for decades, due to the huge tariff and trade imbalance. We should add that being the world’s piggy bank is an unsustainable and unfair arrangement paid for by the long forgotten American taxpayers, who see very few benefits in return for handing over their hard-earned cash to every Tom, Dick and Harry the American bureaucracy could dream up.
As we have learned over the past eight weeks from the Department of Government Efficiency (DOGE), trillions of American taxpayer dollars have been illegally mis-spent on millions of dubious schemes, ideas, organizations, and fantasies, many of which directly aimed at harming the United States. American taxpayers have been funding their own sworn enemies through agencies like USAID, DHS, EPA, HHS, and the Department of Education.
In other words, domestic enemies here in America were running the federal government, and using our tax money to damage and destroy America. This egregious situation is only in addition to the lopsided international tariff arrangement that has grown out of control since about 1920.
The tariff situation is egregious by itself. All kinds of countries we Americans think of as “allies” have had heavy tariffs placed on importing American food and manufactured products, including milk and dairy, steel, etc. Many of these countries’ governments paid what minimal tariffs that the USA had in turn on products being imported into America, in effect buoying up their own private businesses.
America did not do that for our own businesses, and in fact America has had very low to no tariffs on most imports. And now after essentially handing over our own wealth and manufacturing sectors to foreigners for decades, we are tired of being the economic piggy bank or punching bag or host body for all of these takey-takey people around the world. It is hard to understand why Americans, particularly working and taxpaying Americans, support this large imbalance and wealth transfer from America to the world.
And yet, as we see, plenty of working Americans are arguing against tariff parity, and are setting fire to Tesla cars and dealerships as a form of protest against DOGE finding and eliminating waste, fraud, and abuse of taxpayer money. Do you have to be mentally ill to belong to that one political party? Do you have to be self destructive to be a voting member of that one political party?
Do you have to hate America, Americans, the rule of law, and everything great about America to belong to that one political party?
Why would any normal American belong to that one political party?
Just as DOGE is causing Americans to take a long hard look at federal government mismanagement, Trump’s tariff parity is going to cause a shake-up in our international trade relationships, no doubt. It is going to cause some re-arrangements of pricing and products we are used to having easily available to us. For example, cheap Chinese crap on Amazon is probably not going to be as cheap any longer. And yesterday the Princess of Patience and I went to look at a new car for her, and we see how the new tariff parity might effect car prices. We learned that those foreign-brand vehicles already ordered and in the pipeline are not subject to tariffs (our family is positively prejudicial in favor of Toyota vehicles).
Of course, foreign brand vehicles made here in America are not subject to tariffs, either, and many Toyota cars and trucks are made in America.
Long and short of this subject is give these policy changes time to work. Already America is seeing immediate positive responses from many foreign trading partners, who are lowering their own tariffs because they know that their own industries cannot afford to absorb Trump’s tariffs. They will lose their export markets if they lose American buyers. So just be patient, remember that this is all being done for your own good and your own bank account, and know that it will work out well.
Putting up with these changes is like making deposits into your bank account. You might feel like you are missing opportunities to party with your money in the short term, but in the longer term you will be very happy.
I wouldn’t hire a Harvard grad to tie my shoes
Like a bazillion other Americans, I run a small business. Mine is in the land and natural resource management sector. Every week I interface with men and machines, dirt, danger, hard work, and serious situations. Little margin for error, feewings, or personal tantrums.
And when I watched the whole Harvard University debacle unfold over last week, culminating on Friday in students, administrators, and faculty alike all rallying around the racist failure university president, Claudine Gay, I realized something profound: I would rather hire a young, hard-working rural person born to a serious work ethic and with a willingness to take reasonable risks to achieve the work goal, who maybe got tenth grade under his belt before going to work for a living, than to try to train a Harvard University mis-educated fragile weenie with no work ethic, an unreasonable expectation of life, and an obsession with unrealistic nonsense.
Said another way: For many years my experience has been that the attorneys I have worked with, whose law degrees were from “East Succotash University,” as opposed to, say, Harvard Law School, were the very best lawyers I have worked with. To a man and a woman, these so-called “no-name” law school grads are gritty, tough, take no prisoners, hard working fighters who zealously represent the interests of their clients. They always get me results. On the other hand, if I had a dollar for every big name lawyer who only wrote letters to my defendants, and who was afraid to actually file a legal complaint and follow it up with court room litigation, I would be a wealthy man.
Perhaps this comes down to rural character versus urban, because graduates from the small schools, the community colleges, the trade schools, almost all come from rural working backgrounds. These are kids who don’t come from money, don’t really know what having money is like, but they do have a strong work ethic and pride in accomplishment. Because in the communities they grew up in, tangible results are the name of the game. Their families got by with a roof over their heads and food on the table because they daily delivered actual hands-on results that America is willing to pay for, and got paid, as opposed to the spoiled, whiny, entitled urban kids populating Harvard University and the other purportedly high quality Ivy League schools. These kids come from the world of manicured lawns, expensive clothes, and fancy cars from young ages whose parents engage in vague numbers work and white collar make-work paper-pushing administrative exercises whose value-added to America is, well….vague.
Forget the poor technical training, the mis-education and Stalinist/ Maoist/ fascist indoctrination that Harvard University inflicts on its students, just on family and cultural background alone, I would be very unlikely to hire a kid from Harvard University, in the off-chance that such an opportunity presented itself. Unless it’s in the hard/ physical sciences, computer science, or math, a person with a Harvard University degree today would not interest me either as a conversationalist, a lunch partner, a book club member, or an employee/ contractor.
I don’t think Harvard University produces high quality graduates any longer. Probably not for the past ten or fifteen years, and maybe even longer. I think the opposite is true, that this school produces societal and workplace misfits who can’t think their way out of a wet paper bag. They have had little to no critical thinking and analytical skills training. If you are foolish enough to hire a recent Harvard University graduate these days, you are going to learn quickly just how failed that school is and how useless these human beings are who are graduating from it.
Yes, all my life I have known Harvard grads, as well as other Ivy League grads, and today’s Ivy League grads are not that old caliber, not anywhere close. The old reputation has been lost because of people like Claudine Gay, who have traded it for short term power over foolish young people.
Most Harvard University graduates today are not fit to tie your shoe. Not for money or for free.
Trump’s America-First Economy Throws Beautiful Curveball to Wall Street
Trade wars were supposed to be a thing of the past, as America had settled into a long, slow decline and eventual death at the hands of our erstwhile trading “partners,” who had been sucking at the USA teat for fifty years. America underwrote the settlement of World War II for Europe and Japan, and suffered as a result. But we thought we were too big to fail, and so we persisted.
And for those of more modern thoughts and memories, recall that for eight years Obama had placed both of his hands on the foreign side of the trade scale in an attempt to accelerate this decline. That eight year stagnant situation, combined with explosive growth in government power and conversely diminished citizen power, while shipping our factories abroad with new rust belt towns popping up all over America was the “new normal.”
And why not end America’s supremacy like this? Under both major political parties America’s trade imbalances were so egregiously bad, so bad for American citizens, for so long, because everyone else was gaining. Officially buoyed up by post-WWII economic theory and political economy theory that placed great value on some vague, never-defined world-wide “stability,” all underwritten by Americans. In funding that stability through sacrifice of our national interest, the theory went, the world was a safer, better place. America was sharing its wealth, buying peace, by keeping everyone else busy making money. Well, let’s be honest here: America’s workers were shifting their wealth to China, and Mexico, and India, and Europe, and Canada, while Wall Street made money no matter what. Wall Street hedge funds betting on and therefore for the failure of American businesses, against American interests, for the misspending of our tax dollars, are the classic example of this bizarre arrangement.
And around this asymmetrical arrangement developed asymmetrical ways of analyzing, tracking, predicting, and valuing economic activity. Like the DOW and other Wall Street measures of economic health. They have been tracking signs of a stable American decline, a drip drip drip bloodletting, not true growth, but rather how much tax money can be wrung or coerced from The People and conveyed to big businesses, not measuring actual value created from investment in our people and their jobs, but rather value on paper or digital.
And then along comes President Trump and his America-first economy, which at its core is the valuation and promotion of you, me and every other American citizen.
By demanding that America simply have equal trade with everyone else, and that it cease bleeding for the world’s benefit, and that we get as much coming in as we have going out or some approximation of that natural policy, President Trump has up-ended 75 years of screwy policy and screwy measures of success. It is that simple, and yet it is such a beautiful curve ball thrown to Wall Street.
Just look at how the tariffs on China have rattled Wall Street’s skewed measures of success, and stability. By America suddenly succeeding in the simplest way, and you and I having more opportunity, more money, Wall Street actually says our economy is down. Well, no, Wall Street, we the people are doing better, even if you are not. And isn’t it interesting that Wall Street was doing fantastic when Americans were degraded and doing poorly…
There’s an old saying that you’ll never beat the Irish, and in turn, you know you can’t beat Yankee ingenuity or will power, either. Americans will never be defeated, unless we decide to defeat ourselves. We came close, oh yes, we almost committed national suicide. But President Trump has shown us a better way, a way of national life.
It is a new day in America, and new beginning, Wall Street be damned.
Fair trade, Yes
Historically, free trade American-style has come at a huge price to Americans.
Often defined by the same unsustainable standards that bring us endless illegal immigration today, free trade agreements between America and our trading partners have always treated America as a bottomless wallet. America could “afford” to give up more and absorb more costs, just because we were so rich and so great and kind-hearted (went the thinking, even among American decision makers).
America never got the “free” or even the good end of “free trade,” and it always got the burden of abiding by external tariffs on American goods and internal dumping that we could not legally identify, that enable our trading partners to undercut American-made prices every single time, no matter what the item.
So now there is a debate about how trading relationships between America and the world should be structured. If China, for example, has big tariffs on American goods, then it stands to reason that we Americans would benefit from placing similar tariffs on imported Chinese crap. Right?
I mean, fair is fair is fair. If one party can do it, the other can do it, too.
People treat one another fairly every day, and each side benefits in the way that they see fit for themselves. It is a good way to run a relationship.
Thus is fair trade born. The idea that trade ought to be fair, just straight up balanced without artificial contrivances giving one side an unfair advantage, based on symmetrical relationships and transparent production costs.
For example, China tolerates no equal opportunity hiring laws, no environmental laws, no workman’s compensation laws, no feminist demands for equal pay, etc. Chinese citizens who advocate for those things are either shot or jailed. Under those artificial conditions, China is able to produce almost any item far cheaper than Americans, who must comply with all of these laws and social pressures, and much, much more.
On top of that starting point, China will dump its own products at below-cost prices, just to swamp the competition and drive them out of business.
Fair trade tolerates none of this make-believe.
If China, again just as an example, wants to sell us a car here in America, fine. Sell it. Ship them over, and let’s see what the market will bear. But if we want to sell cars in China, by gosh, let us sell them there, for whatever the market will bear.
Free trade is one of those theoretical ideas that never really happens, try as one might. Like the magical unicorn under a rainbow, it paints a pretty picture, but it is mostly myth or fantasy.
Fair trade, yes.
Gun swap on the kitchen table
Today, a friend called me. A friend of his was bringing over some rifles, shotguns, and old knives to trade. Was I interested in participating?
I’m reporting here that we traded guns like pennies in a penny-ante poker game.
It’s an American tradition, this private gun ownership thing. No paperwork. No records. No criminals. No bad intent.
For another buddy of mine I got a lightly used pump deer rifle. He will pay my actual cost; I don’t make money off of friends.
Background checks have been proposed on this harmless activity; they would merely document who got what, for future attempts at gun confiscation. None of us are or will be criminals. Guns in our hands are the highest deterrent to crime, however.
Trading terrorists for a traitor
Accentuating a disastrous foreign policy that has damaged America’s standing more than any past efforts from outside the nation, traitor Bo Bergdahl is traded to America for five dangerous, proven Afghan terrorists kept at Camp Guantanamo.
That is, America took back a guy who abandoned his comrades and hates America, and in turn reduced the inmate population at Guantanamo. Those inmates will go directly back to Afghanistan, be welcomed as heroes, and they’ll promptly begin killing and maiming civilians and American soldiers.
American soldiers?! US Marines?! you ask.
Yes, Bush’s War became Obama’s War years ago. And it continues, without a shred of outrage from the artificial opposition that plagued America during the Bush administration. Obama maintains thousands of military personnel in Afghanistan, with restrictive rules of engagement, unable to defend themselves, sitting ducks for the five super bad guys Obama just released.
Obama is in good company in his hate for the US military. Dan Dromm, NYC council member, wants JROTC out of taxpayer – funded schools. Dromm calls JROTC “part of a war machine.”
Mmm hmmmm. The same ‘machine’ that has been protecting Dromm, Obama, and the rest of the unappreciative traitors running various parts of America.
Could we not have included Dromm in the Bergdahl trade, too? That way we could have leavened the bad foreign policy with good domestic policy. Deporting traitors like Dromm counts as awesome domestic policy.