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| Economy |
| Tariffs Are Wealth Destroyers |
| 2025-03-06 |
| [Mises] On January 31, 2025, US President Donald Trump announced that he would impose a 25 percent tariff on imports from Canada and Mexico (except for Canadian crude oil and energy imports, which will be subject to a 10 percent tariff) and a 10 percent tariff on imports from China. Tariffs are taxes on things that Americans buy from producers in other countries. OR, they are negotiation weapons in getting other countries to drop their tariffs and policies that hurt American trade One would have thought that out of all people, President Trump—who prides himself on placing America first—would never consider imposing tariffs. After all, a tariff on any imported good implies curtailing the supply of less costly goods and encouraging the supply in a domestic market of more costly, domestically-produced goods (i.e., punishing the domestic consumers: the Americans). In his Economics in One Lesson, Henry Hazlitt quotes Adam Smith, It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. The tailor does not attempt to make his own shoes, but buys them of the shoemaker. The shoemaker does not attempt to make his own clothes, but employs a tailor. The farmer attempts to make neither the one nor the other, but employs those different artificers. All of them find it their interest to employ their whole industry in a way in which they have some advantage over their neighbors, and to purchase with a part of its produce, or what is the same thing, with the price of a part of it, whatever else they have occasion for. What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom... Given that President Trump considers himself as a successful businessman, he surely must be well aware that the ultimate goal of every business is to make profit. Hence, to succeed in this task as a businessman, Donald Trump will not allow activities that would undermine the net worth of his company. Yet the President is of the view that this is acceptable for the economy as a whole. If policies such tariffs weaken the process of wealth formation and undermine individual well-being, obviously this is bad news for the economy as a whole, which President Trump holds as number one on his priority list. President Trump is of the view that, through tariffs, he can make the US economy prosperous... CONCLUSION The imposition of tariffs is going to hurt the American consumers. This will stifle trade between the US and the rest of the world. It will undermine the process of wealth generation. According to Mark Hendrickson--Trump's First Big Economic Mistake: In 1850, Frederic Bastiat wrote in his classic essay, "The Law," that tariffs are a step toward socialism. In his words, "protectionism, socialism, and communism are basically the same plant in three different stages of its growth." All three call for government to intervene in the marketplace to influence who gains and who loses. Related: Tariff: 2025-03-05 Furious Justin Trudeau calls Donald Trump's tariffs ''dumb'' and vows to escalate trade war Tariff: 2025-03-05 Honda moves Civic production plans to Indiana from Mexico to avoid tariffs: report Tariff: 2025-03-04 China to impose retaliatory Tariffs up to 15% on US Goods starting March 10 |
| Posted by:DooDahMan |
| #10 One of the reasons we have the income tax is that prohibitionists realized that much of Federal income came from excise taxes on liquor. So they needed an alternative source. |
| Posted by: Rambler 2025-03-06 13:50 |
| #9 Absolute BULLSHIT - America's Golden Era in the 19th Century was funded via Tariffs. Prior to Windrow Wilson, 1800-1913, America didnt have an income tax and we were still flush with money. We built the Panama Canal from tariff money, not income tax. |
| Posted by: mossomo 2025-03-06 13:46 |
| #8 All Chinese industry is state supported. |
| Posted by: Grom the Affective 2025-03-06 12:13 |
| #7 Tariffs are "friction" that impedes the flow of trade in a perfect world. So does corruption, taxes and the fact that goods do not magically change hands ...welcome to the Real Worldâ„¢. |
| Posted by: magpie 2025-03-06 11:49 |
| #6 That Honda production that they just moved from Mexico to the US will help. |
| Posted by: Crusader 2025-03-06 10:59 |
| #5 more data |
| Posted by: Procopius2k 2025-03-06 10:43 |
| #4 Tariffs could play a significant role in an already shaky housing market |
| Posted by: Skidmark 2025-03-06 08:52 |
| #3 Does anything think Afrikan locals pay the same for as Americans for hunting lodge or hotel accommodation? No, they stick it to wealthy Americans. Doesn't happen when they come here, I can assure you. |
| Posted by: Besoeker 2025-03-06 08:05 |
| #2 Basic choice - Low or no tariffs which exports labor to other countries and fund a large government bureaucracy for a large unemployed population paid by higher taxes or Matching or higher tariffs which means paying higher prices in the market, but less unemployment and size of government welfare. |
| Posted by: Procopius2k 2025-03-06 06:43 |
| #1 The tariffs will marginally raise the price I pay for some consumer goods. I will, instead, buy other goods or keep my money. The price increase I pay for eggs and chicken caused whatever Fauci cooked up in a lab is more significant. Tarries are a big wealth destroyer for some people I don’t necessarily care for. |
| Posted by: Super Hose 2025-03-06 06:15 |