Wednesday, June 6, 2018

Tariffs Anyone?

       Do you know enough about tariffs? I sure don't, but here's what I do know. I know that we need strong steel and aluminum industries for our national defense. To make them strong again they need to be competitive with other countries' industries. The quick way is to place tariffs on those industries, meaning to levy taxes on those products if they're shipped to America. That's a tariff.
       So why do these other countries hate our tariffs so much? Because it makes their industries products more expensive in America, which means American companies stop buying their products. Which means their companies have to lay off employees because of lost demand for product. Which means more unemployed in those countries.
       So, in the case of Mexico, and probably more countries, they will levy tariffs on products made or grown in America. That means those products will be more expensive over there. That means more unemployment in America. They call that trade war. Tit for Tat. You hurt me, I'll hurt you. That's children's rules. How come we want to start a school yard brawl?
       And why would we want to start that fight with our best friends. That's the kind of fight you reserve for your worst enemies. I have to say I don't have the answer. What concerns me the most is that our leadership doesn't seem to have an answer either, and that's a bit scary. This great booming economy could wind up in the trash heap if we keep picking fights with our friends.

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