Washington-in a gigantic extent, Donald Trump won the presidency, promising voters from the workers’ class that he would create many novel jobs by imposing tariff taxes on imported goods.
He told voters with one of the main problems with the US economy, the fact that we sent jobs abroad through bad trade contracts that flood our low import stores. It can be good for consumers, but not for American workers trying to earn a living.
The simplified answer, as Trump told us, is the imposition of commercial taxes, called tariffs, to these imports, making them much more high-priced, and thus creating equal opportunities that will strengthen our economy and make us more competitive.
This was not a novel idea, but promoted by organized labor and politically powerful bosses of the Union and their liberal allies in the Democratic Party in our industrial history.
But this is not all that has broken down, and is contrary to all available evidence that is trading tariffs that harm low -income consumers, companies and our general economy.
Over a year ago, when the billionaire of Mogul was preparing to enter the GOP presidential race, economists Stephen Moore and Larry Kudlow wrote a brilliant song for the Daily Business Business, which warned about the dangers in Trump’s plan.
“Here is the historical fact that Donald Trump and many voters attracted to him, may not know: the last American president who was a commercial protectiveist, was the republican Herbert Hoover,” they wrote. “Of course, this economic strategy did not prove so good – neither for the nation nor on GOP.”
Then they asked this question: “Does Trump aspire to be the Hoover of the 21st century with the modernized Smoot-Hawley tariff platform from 1930, which helped send the US and the global economy in a decade of depression and breakdown of the banking system? “
Yes, Trump is right when he complains about the unfair commercial practices of China and other economies around the world – by drinking our technologies and patents and counterfeiting our goods, they say Moore and Kudlow.
“But clapping Trump’s punishment for imported Chinese goods will harm Americans at least the same as Beijing,” they said.
Many voters could forget that the 35 percent tariff proposed by Trump for imported goods is nothing more than a tax added to the costs of purchased products. It would not only be “the largest tax increase for American consumers in modern times,” said two conservative economists, but this will hurt the most vulnerable people in our economy.
“Walmart was one of the largest programs to counteract poverty in the history of the world and achieved” daily low prices “, which partly bring a poor and average middle class through cheap imports,” they indicate.
Prices in these and other discount stores would escalate rapidly under Trump’s tariffs, harming retail companies throughout the country, which resulted in the store’s closing, widespread layoffs and a weaker economy.
“Economists are famous for disagreeing with each other,” writes conservative economist Harvard, Greg Mankiw, but there is a surprisingly uniform agreement on harmful tariffs that can cause our economy.
Last year, panel 51 of leading economists with various ideological views was asked to answer this statement:
“Adding new or higher import duties to products such as air conditioners, cars and cookies to encourage manufacturers to make them in the US would be a good idea.”
“Out of these economists, 100 percent stated that they disagreed with a statement,” he wrote manics last month in the article for Heritage Foundation.
No economist was a stronger warrior against tariffs than the deceased Milton Friedman, who convincingly argued in his best -selling masterpiece “Free is a choice” that “free trade is in the best interest of commercial countries and the world.”
However, Trump began a tariff war on trade, threatening General Motors this week in a different tweet to impose taxes from GM for the import of tiny Cruze cruze cars from Mexico.
“But the truth is that Detroit Auto Maker uses a factory in LordStown, Ohio to collect most of the Cruzes he sells in the US,” reports Wall Street Journal.
In the 1980s and 1990s, during a rapid expansion of trade, we created almost 40 million novel jobs, the unemployment rate fell by half, and “the middle class recorded life standards by almost a third”, they remind us of Moore and Kudlow.
Company of micro -scale by imposing higher commercial taxes to employers and exceeding consumer prices through the roof is not a way to run a dynamic economy.
