On tariffs and trade with China

The intent of the Chinese tariffs is to get companies to buy (cheaper) American made steel, which they could do but don't because they're looking at the profit margin not sustainability. It's obvious the Cruze is not selling well and that's not because the steel prices are too high. The plant closed because its product is not profitable.

 

That being said, tariffs are going to raise costs no doubt. What's the alternative? Let countries like China produce cheap goods with slave labor then dump them on our shores? Idk I'm not a PhD economist just a curious observer.

 

The reason China can manufacture steel at such low prices is because political prisoners don't get paid a wage. They work for free. And, if there are no tariffs on the raw goods just the finished product in this case steel, then you import the raw materials and manufacture the steel here. At that point the ONLY reason the costs would be higher are labor costs, which is always going to be the case with products manufactured in the US because of unions and other considerations. There aren't considerations for human capital in countries like China because they have no rights over there. 


As for cheap goods manufactured in China, the reason they're manufactured in China in the first place and imported here where they end up in Walmart, Target and every other retail outlet is because they're able to be MANUFACTURED at such a lower cost because of the slave labor. They don't have to worry over there about lunatic politicians demanding a $15 minimum wage.

Comments

Leroy Added Dec 4, 2018 - 8:51pm
No offense, but the article is pretty much horse manure.
Jeffry Gilbert Added Dec 5, 2018 - 2:06am
With offense and utter contempt the article is pretty much horse manure.
 
Kristen Foley Added Dec 5, 2018 - 12:03pm
That being said, tariffs are going to raise costs no doubt. What's the alternative? Let countries like China produce cheap goods with slave labor then dump them on our shores?
 
I’ll be happy to answer your questions, the alternative is to not have tariffs.  In not having tariffs we put more money in our pocket and that allows us to have a higher quality of living.  Keep in mind, the economic law of comparative advantage suggests we should buy stuff we can’t make cheaper ourselves and focus on making the stuff we are better at. 
 
The suggestion that Chinese products are cheaper because they use slave labor is ridiculous.  There are 1.4 billion people in China, they build labor intensive products like toys cheaper, because the cost of free-will labor is cheaper in China. 
 
The suggestion the Chinese are dumping their goods and services on our shores is also ridiculous. For the record, when a company dumps it means they intentionally sell a product at a loss and then when all the competition is gone, jack up the price.  So if this has happened, kindly tell me the product, service or industry where this happened?  I'll give you a hint, it never happened in the past and you can't name a place it's happening now.
Gerrilea Added Dec 6, 2018 - 1:24pm
S & S--- Thank you for the fresh air and rational arguments.
 
Leroy, Jeffrey Gilbert & Kristen F--- All of your arguments are meaningless.  You are all saying the same shit and it doesn't change the facts, as the author has presented here.
 
Let's go one by one with the false arguments:
 
In not having tariffs we put more money in our pocket and that allows us to have a higher quality of living.
 
IF that were even remotely accurate, we wouldn't have 48 million Americans in perpetual poverty and 151 million receiving some type of government stipend.  We tried your "free trade" deals and it destroyed this nation and the American people.
 
The elite corporate sycophants are they only ones whom "put more money" in their pockets.
 
they build labor intensive products like toys cheaper, because the cost of free-will labor is cheaper in China. 
 
The have, in reality, FORCED LABOR CAMPS.
 
There is nothing "free-will" about their system.
 
As for the term "dumping" that is a meaningless red-herring and doesn't negate the facts.  China uses forced slave-labor our Corporations demanded to sell their products to We The People as a "competitive edge"!  There is nothing competitive about using slave-labor.  Orwellian doublespeak.  Apple, Microsoft, et al couldn't actually compete in a true "free market" economy and it ain't because of the higher wages we demand.
 
Mogg T--- You seem to be the only other person that understands why Trump won and the duty of our government.  Protecting the bottom line of corporate America wasn't part of the deal.
 
I read quite a few article years ago, can't remember where but the line of thinking was that we had too high of a living standard and we had to surrender said to "raise up the rest of the world".
 
And that's exactly what they've done.  We are paupers in our own nation and our life expectancy keeps going down and we have the highest infant mortality rates in the Western World.
 
Ugh.
 
 
 
 
Gerrilea Added Dec 6, 2018 - 2:53pm
And as an addendum to my last reply.
 
Posted today on Zero Hedge.
 
Household Wealth Hits A Record High, with a catch:
 
And while it would be great news if wealth across all of America had indeed risen as much as the chart above shows, the reality is that there is a big catch: as shown previously, virtually all of the net worth - most of it in the form of financial assets - and associated increase thereof, has only benefited a handful of the wealthiest Americans.
 
As the following chart from Deutsche Bank shows, the wealth inequality in the US is now as bad as it just during the Great Depression, with the top 0.1% of the US population owning as many assets as the bottom 90%.
 
PFFT!
 
 
John Minehan Added Dec 7, 2018 - 6:40pm
"Let countries like China produce cheap goods with slave labor then dump them on our shores? Idk I'm not a PhD economist just a curious observer."
 
In a word, the answer is "Yes."
 
You don't need a Ph.D, in economics.