Trade War Casualties

In addition to US tariffs raising the cost of the steel and aluminum Harley uses to make motorcycles for Americans, TrumpTrade is driving US manufacturing jobs to Europe. Doesn’t say how many jobs will be lost, but 40,000 motorcycles a year are no longer going to be made here. Meanwhile, Harley has to eat $30… Continue reading Trade War Casualties

This is new

But it still shows President Trump's confusion on trade and tariffs. From whitehouse.gov:Press Conference by President Trump After G7 SummitEmphasis mine. Q Mr. President, you said that this was a positive meeting, but from the outside, it seemed quite contentious. Did you get any indication from your interlocutors that they were going to make any… Continue reading This is new

Looting and Freedom

Whether political freedom or economic freedom is more important is a moot question. The most basic property right is self-ownership. To the degree that right is compromised, so is freedom. A commenter at the linked article above noted this: “I propose in the following discussion to call one’s own labor, and the equivalent exchange of… Continue reading Looting and Freedom

Negotiating tactic

I keep seeing this defense of the President's tariff policy: "The threat of trade war is just a smart negotiating tactic. Chill out." I concede the possibility that it is a negotiating tactic. However, that doesn't make it an intelligent or wise negotiating tactic.One problem is that lying about the economic effects of tariffs encourages… Continue reading Negotiating tactic

Squandered

A very short history of US steel making after WWII.How the U.S. Squandered Its Steel SuperiorityIn the early 50’s the Europeans were rebuilding their steel industry with new technology: "The cost of building steel mills using the basic-oxygen furnaces was 40 to 50 percent lower than conventional open-hearth factories; operating costs were 25 percent lower,… Continue reading Squandered

Trump’s tax increases

Tariffs are alleged to benefit the US at the expense of foreigners. In fact, they benefit a small coterie of businesses at the expense of everyone else. The increased cost of houses due to the President's lumber tariffs doesn't just mean fewer houses being sold, it also means those who do buy houses have less… Continue reading Trump’s tax increases