Rational Tariffs Lower Irrational Trade Deficits
As historical memory diminishes and
the lessons of past centuries are forgotten, the practice of systematically destroying economic independence grows. Forget
about real prosperity, the concept of interdependence, coined in popular parlances by the Trilateral Commission, has made
the United States economy a post industrial dependency and a bankrupt debtor. The global corporatists despise protective tariffs
because these excise taxes must be paid by foreign manufacturing enterprises. Since the rush to escape American shores, the
transnational ventures seek not just cheap labor, but scheme to evade any effective regulations for the paradise of third
America’s economy was built under the shield of tariffs. The nation became the greatest industrial
engine and traded profitably with the rest of the world, when reasonable excise and duties were charged on products entering
this country. Just remember, the budgets of government were paid without an income tax under this system of tariffs. Who can
logically argue that the deception of Free Trade benefits our population, when the current record of trade deficits continues
unabated? Tariffs for Survival
or Profits for Multinationals provides evidence that tariffs are the best method to combat the deficiencies
of the Free Trade ruse.
is nothing free about the loss of living wage jobs and the demise of independent production capacities. The notion that America
is best served when multinational 'stateless' corporations are allowed to leave our shores and dump their foreign built products
back upon the society that developed, financed and provided a ready market, is insane."
The mumbo jumbo of corporate economists, employed by financial institutions is nothing more
than jive by paid shills to defend an indefensible system. Use common sense. Any economy that is systemically stuck with mounting
trade deficits is going broke. As long as the American marketplace has the desire to buy foreign made products and the money
to pay for them, the game will last a little longer.
However, as a nation,
the country is broke and the day when the dollar loses its reserve currency status is nearly upon us. Trading countries want
to sell their goods to Americans. These countries will continue to do so even after adding a fair excise tax for the privilege
of exporting their items to the largest market in the world.
cost to consumers may rise, but the balance of deficits will fall dramatically and would push the buying power of the currency
higher, which will allow for purchases in more valuable dollars. The other worthwhile consequence is that offshore manufacturers
will want to build plants, create products and employ American workers here at home. The invigoration of domestic growth can
and would develop when the labor force is able to get back to work.
chart that shows world GDP when compared to trade under free trade agreements demonstrates that much of the world is not bound
to the restrictions that favor globalist enterprises. Then ask why is it so important for the United States to have free trade
agreements with other countries, which result in opening up our markets for dumping products that force out our own production
and close domestic businesses?
The false argument that free trade and
a cheap dollar foster American exports is one of the most destructive myths that the corporatists spin.
Domestic exports are a very low percentage of national output and even if the dollar was
to lose, 90% of its international exchange rate value products will not be exported because the country is phasing out most
manufactured goods. The notion that exporting our natural gas resources will help is extreme lunacy in an infinite asylum
of national denial.In the Varying Verity series the following, written ten years ago, remains true today.
method to adopt for restoring a viable domestic economy would require reforms that drastically lower, if not abolish, personal
income taxation - be linked to the passage of Pro-Competitive ad valorem Tariffs in the form of a national import sales tax.
We all share in the goal of smaller government, less regulation and free usage of our own money. We have a mutual interest
in building a domestic economy that will create higher wage scales and more retained after tax income for the greatest number
of our own population. When the best jobs become government work, our society is doomed and reduced to the median worldwide
Surely, you must acknowledge that our
country is desperately in need of a dramatic job growth strategy. Hopefully you will accept that private employment enterprises
are preferable to public section government make work positions. Certainly you must see the sense in lowering the trade deficits
that are bankrupting our economy. Need more proof?
at the steady rise in the trade deficit for the last two years. With a November 2011 trade deficit of -$47.8 Billion Dollars,
just how much of our wealth and resources need to be transferred overseas to narrow this real world wealth destroyer? The
answer is that the deficit curve will never turn down until rational protective tariffs are levied on imports.
How can America exist as a viable economy, when our money sinks in purchasing power and
the country must import consumable goods, especially when we have no money to pay for the products?
going into further debt is no alternative if the economy is to survive. This current course guarantees a lower standard of
living and a dismal future for your children. Whenever the topic of establishing
reasonable protective tariffs comes up, you hear the claim that the Smoot-Hawley tariff of 1930 deepened the depression. Ian
Fletcher in Protectionism Didn't Cause
the Great Depression debunks this misnomer.
"The Smoot-Hawley tariff was simply too small a policy change to have so large an effect
as triggering a depression. For a start, it applied to only about one-third of America's trade: about 1.3 percent of our GDP.
One point three percent! America's average tariff on goods subject to tariff went from 44.6 to 53.2 percent -- not a very
big jump at all. America's tariffs were higher in almost every year from 1821 to 1914. Our tariffs went up in 1861, 1864,
1890, and 1922 without producing global depressions, and the great recessions of 1873 and 1893 spread worldwide without needing
the help of any tariff increases.
If Smoot-Hawley had caused a global
trade disaster, it would necessarily have been by triggering a sharp decline in American imports of goods subject to the increased
tariff. Did this happen? The data say no."
Do not be
deceived by the globalists. Sensible tariffs are a solution. Trade deficits are the problem. Liberate yourself from the Free
Trade agreements that only produce high unemployment and perpetual poverty.
Hall – January 25, 2012