Reading time – 3:45; Viewing time – 5:00 . . .
Frequent reader, insightful commenter and friend John Calia directed me to a blog by John Mauldin discussing the issue of tariffs and trade wars. Mauldin is comprehensive and clear in his work and I urge you to link through and read his offering.
I was at one time an undergraduate econ major and I recall clearly a lecture by my professor, Dr. George Thatcher at Miami University. He talked about tariffs in great detail and showed how counter-productive they are. He was far too much the gentleman to use the word “idiotic” to describe them, but that word comes to mind as I conjure his clarity of description. He convinced me then of the certain backfire of tariffs and I have seen nothing in the intervening decades to change my mind.
Mauldin is spot on, especially as he invokes the obvious, now called “game theory,” in which other countries will not sit idle as we attempt to stack the deck in favor of the U.S. Other countries will adjust and act in their own best interests. Tariffs will backfire and hurt us greatly.
The Trump administration is focused on two – and only two – objectives. The first and most important is that everything is entirely about Trump getting continuous applause and accolades in his reality-TV-show administration. Declaring us victims of unfair trade deals and promising protective tariffs stokes his “base” and delivers a thundering applause line that feeds his narcissism. And there is a complete absence of people who actually know something about tariffs. What those experts say doesn’t trigger applause, so they’re of no use to Trump.
The second objective is driven by Stephen Bannon, who proudly proclaims that he wants to bring the establishment crashing down. If destroying the established order in its entirety is what is most important to Bannon and, by extension, is important to Trump, tariffs will be a huge aid in the effort. The result will not be pretty for the rest of us, but Bannon will be smiling and thumping his chest and congratulating Trump on how brilliant he is. I’m not sure, though, that even the America Firsters will be thumping their chests when we see hundreds of thousands of jobs disappear and former international friends being not at all friendly to us.
And another thing . . .
And finally . . .
Sen. Jeff Flake (R-AZ) published a stunning article in Politico entitled My Party Is In Denial About Donald Trump. It is a call to courage and action and I urge you to read it, keeping in mind that this was penned by a Republican from a very red state,
Ed. note: There is much in America that needs fixing and we are on a path to continually fail to make things better. It is my goal to make a difference – perhaps to be a catalyst for things to get better. That is the reason for these posts. To accomplish the goal requires reaching many thousands of people and a robust dialogue.
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Copyright 2019 by Jack Altschuler
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