How much will Trumps Tariff Plan shake up the economy, create jobs, and drive up prices?
Conservative ideas rarely go against the idea of free trade. So when President Trump proposed steel and aluminum import tariffs, the entire Republican Party appeared apoplectic.
Despite a 2016 presidential run based on economic nationalism, it was like none of them saw it coming.
The indignation has only increased with every new announcement of an oncoming “trade war.”
Allow me to take off my conservative hat and replace it with a tri-corner hat. (Patriot, get it?) Every day Amazon announces a new foray into another industry. As technology increases, the opportunity for future jobs decreases for Americans. In a country where we have the ability to create products based on our raw materials, import prices have robbed us of a solid future.
We can keep living year to year with the cuts until we become a service and professional economic country. Or we can do something about it. Trump is a man of action. He answers to one group: the workers.
His latest announcement could create early growing pains, but the payoff could bring the United States to the forefront of economic stability. It’s worth a try.
How much will it cost me?
The immediate outcry came from the industries that use steel and aluminum for their products. I can’t remember a time when CNBC, MSNBC, and Fox News seemed so concerned with beer. The coverage made it seem like a six-pack of Coors Light was as integral to American health as vaccines. Car companies warned that Hondas would now cost the same as Bentleys, or something like that.
Let’s dig deeper. No doubt mass hysteria reigns when a seismic shift happens. Suddenly MSNBC was concerned with the bottom line for corporate America. (What a swift change from the aggression against Trump’s tax plan because ‘it lines the pockets of corporations.’)
Will prices truly be affected? Consider this point of view from ‘Big Aluminum’. In 2014 prices for the precious metal dropped by 50 percent. But, did the price of beer or cars drop? No! The profit margin just widened for corporations, but we have to feel bad for them when the belt tightens?
Clearly, this tariff must add at least 10 percent to the cost of beer because of the cans? Actually, early estimates show a price increase of 1.5 cents per six-pack. As far as cars go, it would add a $35 cost. Three hundred dollars is the highest cost to pass on if you include the steel tariff.
Where are Democrats on this? Mired in hypocrisy. Remember the income increase of $130 per paycheck wasn’t a ‘big deal’ when the Trump tax plan came out. So by that logic, this is a marginal increase and not worth commenting on. Logic trumps passion, donkeys.
These tariffs don’t make a tectonic shift in prices, but they do in the world of the emerging U.S. economy.
The tariffs signal a new economic order
The bigger deal that has been underreported is how this plays into the massive shift in the U.S. workforce. President Trump is a bigger advocate for the American worker than President Reagan, nearly tenfold. Heck, he is more Eugene V. Debs than Obama.
(Before your liberal friends scoff and point out the massive CEO increases and corporate bottom lines, kindly point to the same facts that apply to the Clinton and Obama presidencies. History gives it context.)
Tariffs like this have been used before to save singular industries. Consider this article from Fivethirtyeight. President Reagan imposed a steep tariff on Japan to save Harley Davidson. Within five years, the motorcycle manufacturer had restructured to save itself and the tariffs were lifted. Harley Davidson continues to thrive today.
Apply that long-term view to the steel and aluminum industries. Both have disappeared from the American landscape over the last 50 years. That makes us solely reliant on imports to make our goods. Globalists scream yay — but what about our workers?
This tariff plan is aimed at bringing jobs back. Analysts are right to say tariffs alone won’t save workers. Trump isn’t just using tariffs. Consider, the tax plan that dropped the corporate tax. It was just one phase of an all-out economic blitz by the president.
A conservative analyst put it best: The tax plan, the tariffs, and the energy exploration aim to make America more attractive to businesses. We can’t lower the wages of the American worker to the slave levels of China. But we can make it possible for manufacturers to keep enough of their profits, save on shipping and raw materials to cancel out the wages. It’s an ambitious goal, but it’s one worthy of our workers’ time.
Trump is an iconoclast. He is against the grain and both parties. He was elected by the common man to find a solution to our rapidly disappearing working class.
If the end game is a more sustainable American economy, would you pay a few cents more for a case of Bud Light?
Article last modified on July 16, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Trump’s Tariff Plan is Good For The Economy - AMP.
Article last modified on July 16, 2018. Published by Debt.com, LLC .