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Democratic Hypocrisy on Tariff's and Global Trade

I'm on the right side of politics and enjoy a good debate on government, the economy, common sense, and the rights of the people.


Republican frontrunner and most-likely our future President, Donald Trump, wants to impose tariffs on China and other nations to prevent our job market from evaporating. The mere mention of this caused more backlash than almost any other thing Mr. Trump has campaigned on. Citing how it was impossible for a myriad of reasons including WTO trade agreements, legal blockades, and more, the “experts” are warning the citizenry of the potential destruction of America if he’s allowed to follow such a strategy. Using terms like “global trade war” and “policy of isolationism” the pundits are trying to make Trump look like someone with a weak understanding of the economy.


Yet in spite of all the negative talk about how tariffs won’t work and how evil they are, just yesterday The U.S. Commerce Department has imposed massive tariffs on Chinese steelmakers in a bid to halt what American rivals have labeled as large-scale dumping. Import taxes of 522%, yes that is not a misprint, and 522% on cold rolled Chinese imported steel have been levied. The actions of the Obama managed department are being questioned by the Chinese economic leaders, and what they are saying sounds just like what the Democrats are saying about Trump. The parroting messages about “trade wars” and “long term economic damage” are being floated out in the media just enough to raise some hackles but not enough to really make anyone mad. So the million dollar question surfaces; why is the practice OK for the Obama administration but not OK for the future Republican Administration?


Understanding how things work

Many people do not realize that the Chinese government subsidizes their major industries to make them competitive; or more simply put, they assist the companies financially to undercut the lowest cost producers in other nations, especially America. These tactics are part of a long-term strategy to erode other nations’ production until they eventually go bankrupt, then at that point the Chinese products will suddenly be priced at the normal or above the normal market prices, allowing them to make huge margins. This tactic keeps China at full employment while other nations suffer unemployment. With China owning so much of our debt, and the need by the Democratic Party for them to keep buying that debt, the administration usually looks the other way. The social engineering and spending projects the Democrats support are much more important than American jobs and financial independence.


Bubble bursting

When you hear the terminology about the “bubble” that is going to burst, much of it refers to this arrangement. The Democrats fear that if Trump makes good on his promise and adds major import tariffs that the Chinese will dump our debt and collapse the dollar. Yes, there is the chance it could happen but only on paper. The Chinese can no more afford to dump our debt than we can afford for them to. One reason is all you need to understand - If they dump the debt, we close America as a market to all Chinese made goods and very rapidly their entire economy collapses. America is their number one customer and they know it. Donald Trump understands the bigger picture of how the major economic parts are in play and he’s prepared to stand up against the ways of the old to usher in a new era of American superiority.

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More Obama Dirt

This isn’t the first time the Obama Administration has levied tariffs either. In 2009 President Obama levied a 35% tariff on imported tires from China. In 2012 Democrat Max Baucus was quoted speaking about how the tariffs they were passing then were saving 80,000 jobs. This was in direct response to a package of tariffs on Chinese made goods. Seems just like what Trump is saying, but then it was a good thing, now it’s a bad thing? I’m confused at how this works I guess. The media in 2009 and 2012 had the same “trade war” stories circulating, but we all know a trade war never materialized. The global economy is too interwoven for anyone to get made and start a trade war, because usually the person who starts it gets hurt the worst.


Ralph Schwartz (author) from Idaho Falls, Idaho on May 19, 2016:

I've been trying to "follow the money" as this election cycle unfolds - amazing how far people are willing to sell one another down the river as long as their personal spot on the gravy train isn't disturbed.

Old Poolman on May 19, 2016:

Yet another interesting presentation, well researched as always.

Most of us are aware that most decisions that come out of the White House are totally driven by votes. Nothing regarding the economy comes into play in the decision making process. It is which decision will get the most votes and the hell with everything else.

Back in my corporate days I worked with several people we categorized as "Fast Trackers." They made many decisions that derived a short term benefit for the company, and were promoted and rewarded for doing so. But sadly, they had no grasp of the long term results that would hurt the company based on their decisions.

Most of our Politicians live in the "Now" world and could care less about the future of this country. Most probably don't even understand our existing trade agreements but will make decisions that will get them votes.

And that is why we need someone like Trump to straighten out the mess we are in. Our current decision makers are not even qualified to do the job. I believe he could accomplish more in one term than any President in our history, certainly more than Obama has accomplished in two terms.

It really is time for an outsider with a real head on their shoulders to step in and get us back on the road again. We have been sitting in the ditch far too long.

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