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Why Trump is wrong on Trade with China

This article was originally written in January after Trump's pronouncements on Trade with China at one of the GOP debates. Still just as relevant given Trump's pronouncements on Protectionism in his "speech" the other day, pronouncements that I'm sure had a thrill running up the leg of Bernie Sanders.

Don't even attempt to read this article unless you like policy-wonk level explanations of important economic/trade issues.

It is a powerful breakdown of the reasons why Trump's pronouncements on Trade with China, if enacted into policy, would HURT average American's, not help them.

http://thefederalist.com/2016/01/20/almost-everything-donald-trump-says-about-trade-with-china-is-wrong/

China wants the US to buy products from their country. They will bend to our will if enough pressure is applied. Also, if the USA takes the lead in imposing tariff's on China, other countries will follow and do the same. The same can be said about Mexico. These countries need the US dollar. We don't need theirs as badly. Trade imbalance if proof of that.

I would just counter with this. Back when tariffs existed, the US economic condition was MUCH better, unemployment was much lower, and the middle class was much stronger.

Though I understand what the implications are to imposing tariffs, it should spur growth and small business development, lower unemployment, and a slowing of China's rapidly growing economy which is fueling their military and influence.

I don't necessarily agree with tariffs per se, but do see the benefit.

"Back when tariffs existed, the US economic condition was MUCH better, unemployment was much lower, and the middle class was much stronger."

I guess the pertinent question to ask would be, was it the tariffs that were driving all the things you mentioned, or were there other factors that were primarily responsible at a time when we just happened to have tariffs?

If you didn't read the article, I highly recommend it. It's not merely a condemnation of Trump's trade "policy" pronouncements, it is a very educational article on the entire subject of tariffs and trade policy with other countries, and the effects of those policies on both American workers whose jobs are affected by tariffs, and the average American consumer whose purchases and money value are affected by tariffs.

Tariffs are just a tax. They would be levied against goods from China and paid by the US company importing the goods. That additional cost goes into the price on the shelf and the American consumer is ultimately who pays for it.

Its simply money from my pocket into the Government's. What we need to do is import stuff that makes sense from China as cheaply as possible. Use those imported products and materials to produce goods and services that make sense for us to do here or resell them and get the heck out of the way of businesses that are inventing, working and risking everyday.

If the only way Joe's Widget Shop can sell his American made widgets is to artificially increase the cost of Chinese widgets, Joe needs to build a better widget or a cheaper one. Lessen the tax and regulatory burden on Joe and let him go for it. If he makes it, we get jobs and tax revenue from his successful business. If he doesn't, then it really does make sense to have widgets come from China and Joe can start a business making classic 50's car parts for exporting to Cuba.

"If the only way Joe's Widget Shop can sell his American made widgets is to artificially increase the cost of Chinese widgets, Joe needs to build a better widget or a cheaper one. Lessen the tax and regulatory burden on Joe and let him go for it. If he makes it, we get jobs and tax revenue from his successful business. If he doesn't, then it really does make sense to have widgets come from China and Joe can start a business making classic 50's car parts for exporting to Cuba."

There is so much rock solid truth here that a lot of people just don't understand, and others still just refuse to acknowledge.

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