Archive for the For Free Trade Category

The effects of the Smoot-Hawley Tariff

Posted in For Free Trade with tags , , , on March 22, 2018 by cavalier973

Some have asserted that the Smoot-Hawley Tariff had significantly less adverse impact on the U.S. economy during the Great Depression than conventional wisdom claims.

Mario Crucini and James Kahn have tried to correct systematic underestimates of the harm of Smoot-Hawley found in a variety of macro studies that ignored the effect of tariff retaliation on the rate of capital accumulation. Using a general-equilibrium model, they calculate that the microeconomic distortion effects reduced U.S. GNP by only 2 percent in the early 1930s. Likewise economist Douglas Irwin computed the general-equilibrium inefficiencies caused by the tariff at nearly 2 percent of GNP.”

2%? That doesn’t sound so bad. The article discusses the issue in more depth.

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Trump/Russia Collusion: an overview

Posted in For Free Trade, For God with tags , , , , , , , , on March 18, 2018 by cavalier973

Go here. There are links within the article (each named “Go Deep”) that go to more in-depth articles on particular subjects.

You have a patriotic duty to be robbed.

Posted in For Free Trade with tags , , , , , on March 14, 2018 by cavalier973

The Protectionists/mercantilists have a curious philosophy: the free market can only work with heavy government intervention. They have the long-discredited belief that manufacturing creates wealth, while trade is a zero-sum game which always “loses jobs” for “our side” to the perfidous foreigners who are selling us goods and services.

They claim that Free Trade is somehow unpatriotic, because apparently they believe that the product of citizens’ labors belongs to the collective, and only the government can properly determine what standard of living each citizen should enjoy. What is amusing is that the Protectionists/mercantilists claim that Free Trade is “Marxist”.

The problems that Protectionists/mercantilists ascribe to Free Trade are actually the result government intervention, which they propose to increase. Deregulation and reduction in government spending and taxation are the true remedies to economic problems, which is why I’ve been hopeful about Pres. Trump’s administration, so far. His unpatriotic push to increase taxes on American citizens will reverse whatever good he has done to this point.

The protectionists/mercantilists have the mistaken believe that a shortage of available goods and services results in a higher standard of living.

From Bastiat: 

“Which is preferable for man and for society, abundance or scarcity?

“What!” people may exclaim. “How can there be any question about it? Has anyone ever suggested, or is it possible to maintain, that scarcity is the basis of man’s well-being?”

Yes, this has been suggested; yes, this has been maintained and is maintained every day, and I do not hesitate to say that the theory of scarcity is by far the most popular of all theories. It is the burden of conversations, newspaper articles, books, and political speeches; and, strange as it may seem, it is certain that political economy will not have a completed its task and performed its practical function until it has popularized and established as indisputable this very simple proposition: “Wealth consists in an abundance of commodities.”

Do we not hear it said every day: “Foreigners are going to flood us with their products”? Thus, people fear abundance.

Has not M. de Saint-Cricq said: “There is overproduction”? Thus, he was afraid of abundance.

Do not the workers wreck machines? Thus, they are afraid of overproduction, or—in other words—of abundance.”

“‘Marxist’ Free Trade”

Posted in For Free Trade, Uncategorized with tags , , , , , on March 7, 2018 by cavalier973

So, President Trump is indulging his neo-mercantilist demons, by proposing that a 25% tariff be imposed on foreign-produced steel, to “protect American steel companies”.

Were it simply a measure by the President to raise revenue for the government, it wouldn’t be quite so exasperating, but the claim that an increase in taxes somehow helps the American economy, and Americans in general, is maddening.

If one reads the sites of the Neo-Mercantilists/Protectionists, one may run across the phrase “Marxist Free Trade”. The idea behind the phrase is that an unfettered market leads to Marxism, based on something Karl Marx said, claiming some such nonsense.

In reality, it is the Neo-Mercantilist/Protectionists who let the communist camel poke its nose under the tent flap, by promoting a policy of government intervention in the economy to raise the income of a certain group of Americans by requiring all Americans to enjoy a lower standard of living.

If President Trump had been honest and proposed, for example, legislation that resulted in people earning $35,000 a year lowering their standards of living so that a small group of people can increase their incomes from $50,000 to $55,000, then people would likely give the legislation the stink eye. And yet, that’s exactly what he is proposing, but because it is couched in false patriotism, then people don’t automatically reject such a policy.

One of Trump’s advisors claimed that the 25% increase in steel prices would only result in a fraction of an increase in the cost of cans of soup, as an example. The problem is that the advisor specifically mentioned Campbell’s soup company. Such a large company may of course be able to absorb the increased cost, or pass the cost to its customers, but “players at the margin” may not be able to do so. Bob’s Soup Company may go out of business, because it is already operating a extremely low margins. With one less competitor in the soup market, we can expect the prices of soup to rise and/or the quality to be lowered. That’s how the market works. Protectionists seem to have a magical thinking about market forces, and expect that costs will be born by “someone else”, and not ourselves.

One last thing, about Free Trade generally: Free Trade is not only the economically advantageous policy, it is the moral policy, because with Free Trade a person can dispose of the product of his labor as he deems best. Protectionism requires that person to dispose of his income in ways that the Protectionists approve. This is a violation of property rights, and a form of theft.

I was happy with the Trump Tax plan that passed late last year, despite its flaws, and considered voting for him in 2020, if he ran for re-election. This tariff could negate the benefits of the tax plan, and my support.

Roy Moore and the GOPe

Posted in For Free Trade, For God with tags , , on December 1, 2017 by cavalier973

This article makes a point I hadn’t thought of concerning the Republican Establishment’s opposition to Roy Moore: Moore’s win will signal to other potential populist candidates that Republican Establishment politicians are vulnerable.

 

 

Also, why the accusations against Moore aren’t actually credible.

Info about the “Olde Hickory House”.

A message to some students of Oxford University

Posted in For Free Trade on September 3, 2017 by cavalier973

https://rosebyanyothernameblog.wordpress.com/2017/09/01/too-good-to-not-quote/

Kid Snippets

Posted in For Free Trade with tags , , on August 27, 2017 by cavalier973

These are some clever videos of adults acting out recordings of children playing/conversing:

My wife’s favorite: Math Class

My favorite (so far): Fast Food Drive Through