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COMMENTARY: Patrick Buchanan on Tariffs -- The Taxes That Made America Great
#1
This is a very accurate historical dissertation on tariffs.  Worth checking out.

By Patrick J. Buchanan | May 14, 2019 | 5:02 AM EDT


As his limo carried him to work at the White House Monday, Larry Kudlow could not have been pleased with the headline in The Washington Post: "Kudlow Contradicts Trump on Tariffs."

The story began: "National Economic Council Director Lawrence Kudlow acknowledged Sunday that American consumers end up paying for the administration's tariffs on Chinese imports, contradicting President Trump's repeated inaccurate claim that the Chinese foot the bill."

A free trade evangelical, Kudlow had conceded on Fox News that consumers pay the tariffs on products made abroad that they purchase here in the U.S. Yet that is by no means the whole story.

A tariff may be described as a sales or consumption tax the consumer pays, but tariffs are also a discretionary and an optional tax.

If you choose not to purchase Chinese goods and instead buy comparable goods made in other nations or the USA, then you do not pay the tariff.

China loses the sale. This is why Beijing, which runs $350 billion to $400 billion in annual trade surpluses at our expense is howling loudest. Should Donald Trump impose that 25% tariff on all $500 billion in Chinese exports to the USA, it would cripple China's economy. Factories seeking assured access to the U.S. market would flee in panic from the Middle Kingdom.

Tariffs were the taxes that made America great. They were the taxes relied upon by the first and greatest of our early statesmen, before the coming of the globalists Woodrow Wilson and FDR.

Tariffs, to protect manufacturers and jobs, were the Republican Party's path to power and prosperity in the 19th and 20th centuries, before the rise of the Rockefeller Eastern liberal establishment and its embrace of the British-bred heresy of unfettered free trade.

The Tariff Act of 1789 was enacted with the declared purpose, "the encouragement and protection of manufactures." It was the second act passed by the first Congress led by Speaker James Madison. It was crafted by Alexander Hamilton and signed by President Washington.

After the War of 1812, President Madison, backed by Henry Clay and John Calhoun and ex-Presidents Jefferson and Adams, enacted the Tariff of 1816 to price British textiles out of competition, so Americans would build the new factories and capture the booming U.S. market. It worked.

Tariffs financed Mr. Lincoln's War. The Tariff of 1890 bears the name of Ohio Congressman and future President William McKinley, who said that a foreign manufacturer "has no right or claim to equality with our own. ... He pays no taxes. He performs no civil duties."

That is economic patriotism, putting America and Americans first.

The Fordney-McCumber Tariff gave Presidents Warren Harding and Calvin Coolidge the revenue to offset the slashing of Wilson's income taxes, igniting that most dynamic of decades — the Roaring '20s.

That the Smoot-Hawley Tariff caused the Depression of the 1930s is a New Deal myth in which America's schoolchildren have been indoctrinated for decades.

The Depression began with the crash of the stock market in 1929, nine months before Smoot-Hawley became law. The real villain: The Federal Reserve, which failed to replenish that third of the money supply that had been wiped out by thousands of bank failures.

Milton Friedman taught us that.

A tariff is a tax, but its purpose is not just to raise revenue but to make a nation economically independent of others, and to bring its citizens to rely upon each other rather than foreign entities.

He is the linky:  https://www.cnsnews.com/commentary/patri...rica-great

Remember, the Chinese need us.  we really do not need them.  They will not like being downgraded in importance.
"It’s Easier to Fool People Than to Convince Them That They Have Been Fooled."
- Mark Twain
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#2
The country subsidizing the most can get hurt the most.

IMO it comes down to currency because it's the product price times the currency conversion rate.

So, forcing the price of local currency down can temporarily offset tariffs.
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#3
Most excellent find, @phxsparks ~ gets down to the nitty gritty of statescraft.
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#4
Excellent post @phxsparks!

"Remember, the Chinese need us. we really do not need them. They will not like being downgraded in importance."-phxsparks

^^this 100% this^^
----
" Appear weak when you are strong and strong when you are weak"-Sun Tzu
(And never let your enemies provoke you into action.)


We cannot force someone to hear a message they are not ready to receive, but we must never underestimate the power of planting a seed.
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#5
Pinned per request.
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#6
(05-15-2019, 07:25 AM)T-Dub Wrote: Pinned per request.

Here are a couple links to articles on this topic you might be interested in.

https://www.commdiginews.com/business-2/...al-118739/

https://thenationalsentinel.com/2019/05/...o-deliver/
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#7
This is 2019 not 1890. The U.S. does not domestically produce vast sectors of manufactured goods anymore.
Tariffs would be more acceptable if they were instituted not only vis-a-vis China but all the other cheap goods
importers. They can be part of a comprehensive plan. In this case, they are not, they are being used as weapons
in an executive card game, with no discussion and no warning. So farmers and many others here and in China
are being punished with no time to adjust their planning.

There's not a lot to discuss at this juncture because no deal is on the table, just tit-for-tats.
Let's see a deal then evaluate its merits and shortcomings at the appropriate time. Trump needs to do a
better job of telling the American people what he wants to do and how to do it - or he will lose on this issue.
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#8
(05-15-2019, 09:51 AM)Treebeard Wrote: This is 2019 not 1890. The U.S. does not domestically produce vast sectors of manufactured goods anymore.
Tariffs would be more acceptable if they were instituted not only vis-a-vis China but all the other cheap goods
importers. They can be part of a comprehensive plan. In this case, they are not, they are being used as weapons
in an executive card game, with no discussion and no warning. So farmers and many others here and in China
are being punished with no time to adjust their planning.

There's not a lot to discuss at this juncture because no deal is on the table, just tit-for-tats.
Let's see a deal then evaluate its merits and shortcomings at the appropriate time. Trump needs to do a
better job of telling the American people what he wants to do and how to do it - or he will lose on this issue.

Trump is negotiating, something he is a wizard at. He will not let the Chinese know what cards he holds or how he plans to play them.
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#9
(05-15-2019, 09:56 AM)Pintaday Wrote: Trump is negotiating, something he is a wizard at. He will not let the Chinese know what cards he holds or how he plans to play them.

We need to support re-integration of entire sectors into the domestic realm. This will require participation by the investment class that goes against their laissez-faire philosophy. That means it will have to be forced upon them, or bottom-up directives need to be implemented. By bottom-up I mean loans to those who are not already billionaires. We haven't produced a single television since 1999 or any textiles to speak of since the early '90s.
Consumer goods, toys, all needs to be brought back. If he is serious about forging such an effort, I would support that.
Much is already not even made in China. So much clothing is made all over Asia, Africa, Mexico. How ironic that our clothing is made in the third world then returned as charity donations to the same areas which produce them. Then these people want to come here because the capitalists do not share the wealth with them. Laissez-faire capitalism is the enemy of the working man. It is destructive to community self-sufficiency and family businesses worldwide. It has also resulted in streamlined products without quality, character and craftsmanship.
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#10
Snip from posthumous publication not intended for general circulation :

A DISCOURSE ON THE CONSTITUTION AND GOVERNMENT OF THE UNITED STATES - John C. Calhoun - 7 th Vice – President of the United States of America

” It is only by considering the granted powers, in their true character of trust or delegated powers, that all the various parts of our complicated system of government can be harmonized and explained. “


.
Celebrating Over 30 Years as a " Designated Paper Terrorist " - I Will Stand Corrected - No Legal Advice or Recommended Course of Action Expressed or Implied

The Constitution - Estate in Trust for the Heirs of Freedom - Local Link
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