I don't have time right now to get in depth but I'd like to get a discussion going on tariffs.

 

What do you all think about these?

While I understnad the desire to protect American jobs and so on, I feel that if we really start putting higher tariffs on thing then our prices for consumer goods will go up simply because if it is procuded stateside the companies have to pay more to the employees and thus raising the cost of the product.

I don't have time right now to get in depth but I'd like to get a discussion going on tariffs.

 

What do you all think about these?

 

how much do we make off tariffs? It seems 90% of all goods are produced in a nother country so we should be getting "boo-kooz" of money from them.

 

I'm not talking about imports/exports but the $$ amount that we get from tariffs from imports from other countries.

I think tariffs are just one piece in the puzzle. 1. Stop giving corporate welfare to companies shipping jobs overseas. 2. Enforce trade laws so that China isn't artificially inflating their currency. 3. Impose some tariffs on foreign steel, aluminum, and some consumer goods.

I am a huge free trade fan, thus not a big believer in tariffs (unless to penalize countries for illegal dumping activities). The best way to combat illegal immigration is not build fences and pay for thousands of border patrol folks. It's to assist Mexico develop its economy and standard of living to create decent paying jobs so that Mexicans don't have to risk their lives illegally immigrating to the U.S. It's to assist the Mexican govt destroy the drug cartels that are corrupting the govt system in Mexico. NAFTA has made considerable improvement in the quality of life in Mexico since enacted and if left alone will continue to make life better in Mexico for the Mexicans. Ask anyone who traveled to Mexico in the 80's and has recently returned. Huge difference in a lot of areas. Wal Mart, McDonalds and other businesses dependent on consumer purchasing have moved into Mexico. That would not have been done but for the creation of a consumer class as a result of NAFTA. People like to say that NAFTA has caused a huge loss in U.S. jobs (think Ross Perots sucking sound speech). And I'm sure it has cost some jobs. But I know plenty of companies (some of which include my clients) that would have gone totally out of business but for NAFTA (which means total job loss) and that have actually increased jobs in the States because they were able to move the assembly part of their operation to Mexico and thereby became more competitive in the marketplace.

 

Adversely affecting free trade is one of my biggest concerns with both of the Democrat candidates. Its great rhetoric on the campaign trail, but not smart for the U.S. economy in the long run. Open competition has proven itself over and over again to be the most efficient way to stimulate and grow an economy.

 

More U.S. manufacturers need to learn to use technology to become more efficient. More U.S. workers need to take their high school and advanced education more seriously so they can become more capable of running the high tech equipment needed for their U.S. employers to become more efficient. Protectionism and isolationism don't work. The advances in automobile quality that we enjoy today is a direct result of the foreign manufacturers forcing the Big 3 to respond to the market. If you keep the foreign cars out of the country with high tariffs, the Big 3 have no incentive to improve the quality of their cars. The UAW is finally responding to the marketplace and the day of the UAW work lift driver making $80,000 or more with overtime is ending. The day of the Big 3 being inefficient is ending. As as a consumer that had to pay the associated excessive costs, I'm thrilled to pete that its ending.

I think tariffs are just one piece in the puzzle. 1. Stop giving corporate welfare to companies shipping jobs overseas. 2. Enforce trade laws so that China isn't artificially inflating their currency. 3. Impose some tariffs on foreign steel, aluminum, and some consumer goods.

 

What exactly is this corporate welfare that you are referring to?

I'm against the use of tariffs or other barriers to free trade. Raising tariffs will not result in a resurgence of some idyllic time passed, where Americans simply had to finish high school and begin their job at the local factory. We can either choose to evolve with the modern global economy or be left behind by shutting ourselves off from trade. So far we've been rewarded with a plethora of products at affordable prices while also retaining and creating well paying jobs.

 

On the other hand, I feel that an increased investment in education coupled with social assistance for those who do lose their jobs is necessary in conjunction with open trade laws.

I'm against the use of tariffs or other barriers to free trade. Raising tariffs will not result in a resurgence of some idyllic time passed, where Americans simply had to finish high school and begin their job at the local factory. We can either choose to evolve with the modern global economy or be left behind by shutting ourselves off from trade. So far we've been rewarded with a plethora of products at affordable prices while also retaining and creating well paying jobs.

 

On the other hand, I feel that an increased investment in education coupled with social assistance for those who do lose their jobs is necessary in conjunction with open trade laws.

 

Wow I agree with this very much. By social assistance I hope you mean moreso retraining then welfare, then I agree 100%

how much do we make off tariffs? It seems 90% of all goods are produced in a nother country so we should be getting "boo-kooz" of money from them.

 

I'm not talking about imports/exports but the $$ amount that we get from tariffs from imports from other countries.

I don't have a number but first of all 90% is a huge overstatement (and either way, the US economy is based as much on the service sector as it is on the goods sector).

 

Secondly, whatever we make in tariffs is a lot less then the price that the consumer pays to keep American jobs. For example (Exhibit 11 from the 2002 Annual Report of the Federal Reserve Bank of Dallas), the tariff on dairy products saved 2,378 jobs. The cost to consumers for EACH JOB SAVED was $685,323.

 

I think tariffs are just one piece in the puzzle. 1. Stop giving corporate welfare to companies shipping jobs overseas. 2. Enforce trade laws so that China isn't artificially inflating their currency. 3. Impose some tariffs on foreign steel, aluminum, and some consumer goods.

1. There is nothing wrong with shipping jobs overseas- no economic model has ever found a long-term connection between total number of jobs available and level of tariff restriction. Furthermore, i.e., the 1991 sugar quota may have protected jobs in the American sugar industry, but it destroyed jobs in the candy industry.

 

2. I agree with you there.

 

3. Why those products?

I'm against the use of tariffs or other barriers to free trade. Raising tariffs will not result in a resurgence of some idyllic time passed, where Americans simply had to finish high school and begin their job at the local factory. We can either choose to evolve with the modern global economy or be left behind by shutting ourselves off from trade. So far we've been rewarded with a plethora of products at affordable prices while also retaining and creating well paying jobs.

 

On the other hand, I feel that an increased investment in education coupled with social assistance for those who do lose their jobs is necessary in conjunction with open trade laws.

 

The old saying, You can lead a horse to water but you cannot make him drink comes to mind.

 

To train a person first time or to retrain, they must be willing.

The old saying, You can lead a horse to water but you cannot make him drink comes to mind.

 

To train a person first time or to retrain, they must be willing.

 

True, but I don't have any sympathy for a person who is not willing to adjust to the ever-changing world.

Adversely affecting free trade is one of my biggest concerns with both of the Democrat candidates. Its great rhetoric on the campaign trail, but not smart for the U.S. economy in the long run. Open competition has proven itself over and over again to be the most efficient way to stimulate and grow an economy.

 

Yes, I think unions are going to have to figure out how to be a part of the global economy rather than insist on old practices. Perhaps coordinating efforts internationally would be a start. Either way, politicians love to pander to those who do not support free trade. Bush even did it prior to the '04 elections with tariff increases on Russian steel to satisfy rust belt voters.

 

True, but I don't have any sympathy for a person who is not willing to adjust to the ever-changing world.

 

I think a lot of this stems back to American culture. We feel like we are owed high paying jobs simply because we are Americans. I think the world is transitioning now and Americans are going to have to dig a little deeper to remain supreme.

This is one of those complicated subjects where everytime I think I have the answer, I think of an exception. This is really an area where tariffs should be decided on a case by case basis.

I am tired of taking care of other countries, I am an American, therefore, I should worry about my neighbor here.

I am tired of taking care of other countries, I am an American, therefore, I should worry about my neighbor here.

 

Exactly. I'm a Union member. Businesses don't take jobs away from here for any other reason than profit. Anyone that thinks otherwise is badly misinformed!