Friday, 16 June 2017

TRUMP IS AN ECONOMIC IGNORAMUS!


Not surprisingly, Donald Trump has followed in the infamous footsteps of his presidential predecessors in the transition from candidate to chief executive. Invariably, every candidate for the presidency makes a whole host of promises, the vast majority of which are horrible and typically only exacerbate the problems they attempt to resolve. Among the proposals, however, there is an occasional bright spot. Yet, once elected the stupid polices are eagerly pursued while the good ones are quickly discarded.

What was somewhat unique about Donald Trump was that he was the first candidate in a long while who had a number of refreshing and much needed proposals – border wall, “drain the swamp,” criticism of Ma Yellen and the Fed, rapprochement with Vladimir Putin and Russia, a deescalation of U.S. imperialism. There were bad ones, too, but the good ones were enough to lead him to a smashing win over the Wicked Witch of Chappaqua.

Even before being sworn in, however, the president-elect began to downplay his most positive positions and emphasize the worst. At the top of this list, and what Trump has been consistently wrong about since the inception of his political career, and even prior to it, has been “trade.”

Trump considers himself an “economic nationalist” in the mold of Patrick Buchanan. Both, however, are simply wrong in this regard demonstrating that they do not have a grasp of the most basic of economic principles.

"How long do we have to stand here together?"
The latest Trump tirade on trade was reported during his recent trip to Europe and a meeting with high-ranking officials. Trump is reported to have lashed out at German auto makers who the President accused of being “very bad” because of the “millions of cars that they sell in the U.S.” The Donald bemoaned, “Terrible, we’re going to stop that” and added “I don’t have a problem [with] Germany, I have a problem with German trade.”

Such talk makes Trump sound like a fool. What is “bad” about providing American consumers with first-class automobiles that they apparently want in large quantities and are voluntarily willing to pay for? And what of American workers employed with Mercedes Benz, BMW, and Volkswagen? What is so horrible about the jobs and income that is provided by German firms to these workers?

Instead of berating German car manufactures, Trump should direct his ire at the immigration policies of psychopathic politicians like Frau Merkel. Candidate Trump was very vocal about this and criticized European leaders for allowing their countries to be turned into multicultural cesspools.

The benefits of free trade and the baneful consequences of protectionism have long ago been elucidated by right-thinking economists, while the historical record has shown that lands which engage in “free trade” are decidedly richer than those that do not. That Trump could spout off such nonsense about the evils of German trade shows how far the level of economic understanding has fallen.

Not only does free trade allow for the extension of the division of labor and specialization, but it has very important non-economic fruits. When trade is unregulated, there is less of a tendency of trading partners to engage in bellicose actions toward each other. Free trade and peaceful coexistence among nations are synonymous. It is when trade is prohibited, skewed by governments to “protect” favored industries, which creates tensions among peoples.

Free trade does not require measures such as NAFTA or negotiated deals by politicians. Instead, producers of one region are free to sell their goods at whatever prices or quantities to consumers of other areas that agree to buy them. Ultimately, trade is up to individual producers and consumers in what they contractually agree to exchange, there is no need for political involvement.

Trump’s lambasting of the German auto makers, however, underscores a more fundamental problem with the U.S. economy. America no longer produces goods that the world’s consumers desire, but instead, produces military hardware that it sells to despotic regimes which enables them to remain in power and wreck havoc on their enemies. Predictably, this escalates tensions abroad while, domestically, the standard of living of Americans fall as scarce resources that could have been used in the production of useful consumer goods are diverted to the creation of murderous military armaments.

Source

Trump has repeatedly boasted about his and his appointees’ abilities to negotiate great trade “deals.” His bashing of the German auto makers right after his multi-billion dollar arms sales to the Saudis show not only that he is clueless in regard to the immense benefits of free trade, but that he is just another adherent, like his predecessors, to the ideals of crony capitalism.

Originally published at Antonius Aquinas

3 comments:

  1. Except that Germany engages in very high levels of protectionism as opposed to USA which does not. Germany imposes, for example import taxes on goods produced outside of Germany of 10 percent and a 19 percent VAT tax. USA by contrast averages about 5.7 percent import duties- no VAT tax. USA doesn't start charging taxes on imported goods until it reaches level of over 1,000 dollars. So smaller businesses and personal buying is not effected by import tax at all. As opposed to Germany which charges taxes even on personal parcels between individuals less than $225. Socking it to the little businesses and individuals.

    So if you want to explain your theories about free trade to Germans it would be helpful. USA has the most open trading of any developed nation.

    And we do actually mange to produce a few other things that outside nations want to buy besides armaments. But dont let me get in the way of your anti-American narrative.

    However, for countries to get dollars they have to sell us stuff.

    There are many more imbalances ( against USA) between the two nations and thier trading polices. I just thought i'd start with the most obvious one.

    If the USA engaged in reciprocal trade policies with Germany- they would not come out on the winning side. Right now-USA has deck stacked against herself. I think Trump would like Germany to engage in reciprocal trade policy. That alone would be more fair.

    Angela Merkel and Euro-crats are kurfluffled becuase they know he is right... but they aren't used to being told that.

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  2. As a Trump supporter, I have enough sense to know that whoever replaces him will be a hundred times worse. (Maybe you prefer Obama and his racist-totalitarian European Union style dictatorship?)Your hatchet jobs on the man who the entire enemy establishment has attacked since he first announced his bid for president, causes me to doubt that you are the friend of 200 million white people in America. You sound more like Facebook !
    In the wake of Donald Trump’s election as president, Facebook has taken justifiable heat for its role in spreading misinformation and propaganda about the candidates. In particular, its news feed algorithm fueled a cottage industry of fake and intentionally misleading “news” that skewed heavily against anti–Hillary Clinton and pro-Trump, according to a BuzzFeed analysis. These falsehoods attracted far more user engagement, on average, than true stories from the same outlets and drowned out earnest attempts by dedicated fact-checking sites such as Snopes to debunk them.
    This should not surprise anyone who understands how Facebook works. Hate-filled anti-whites (e.g. wiggers, negroes, moslerms) tend to read, like, and share stories that appeal to their emotions and play to their existing beliefs. Without robust countervailing forces favoring credibility and accuracy, Facebook’s news feed algorithm is bound to spread lies, especially those that serve to bolster people’s preconceived biases. And these falsehoods are bound to influence people’s thinking.

    opart78@yahoo.com Jack Smith


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  3. I only have one question. Is the author an American, a Britbong or a European? If he is either of the latter two, we can safely dismiss everything he says. We might even safely dismiss it in the case that he is an American, but we would need more information.

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