by Outcast_Searcher » Mon 12 Mar 2018, 14:31:53
$this->bbcode_second_pass_quote('Newfie', 'T')he topic is protectionism, Steel in particular. By broadening the scope of discussion so much we start to loose focus on the topic. Not that those discussions are not valid, just that they distract from the point at hand. Perhaps the automation discussion is better in the Superfelous People thread?
You're right. My bad on that.
The problem with strict protectionism is that though it may be well intended, it is counterproductive overall.
I saw an article where a Steel company (US Steel or similar) was saying that with the tariff, they would open a steel plant and provide 500 steel jobs.
On the surface, that sounds great.
But if the resulting deterioration in trade costs, and all the additional costs to people who use steel downstream does $billions of damage to the economy -- WHAT IS THE POINT of creating 500 (or even a few thousand) jobs, if it costs millions or even tens of millions of dollars per job in economic damage?
For any tariff one side decides to levy:
1). It's not a secret.
2). The other side can retaliate in a variety of ways.
I'm not a Trump basher at all. I look at issues one at a time and "grade" him on each issue -- just like I do with any politician, or the folks who elect them. (Much to the dismay of the left wing comments section for NY Times articles, where Trump bashing is constant).
I respect Trump for at least trying to make good on this campaign promise. I just wish when the vast majority of the economic experts point out the problems with his plan, that he'd at least listen carefully, and perhaps try another way.
For example, why is it (as Musk points out) that China charges 10 times the tariff for US car imports vs the US, unless the US agrees to produce the cars in China (and let China basically steal the operating company's car tech, with very little effort -- which China has a very bad reputation for doing to many industries over time)?
IMO, trying to address imbalances like that would be far more productive than slapping tariffs on a couple of metals and causing a significant amount of economic impact to many businesses and customers in many countries.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.