Campeador
Active member
13653121:.MASSHOLE. said:Here, read the article linked inside. https://www.piie.com/publications/pb/pb12-9.pdf
It saved 1,200 jobs. Yippie. We, the consumers, spent about $1b for 1,200 jobs. Not really a great trade off is it? What I am about to present is EXACTLY what I said would happen with a trade war. Let us begin.
First: "The cost per job manufacturing saved (a maximum of 1,200 jobs by our calculations) was at least $900,000 in that year. Only a very small fraction of this bloated figure reached the pockets of tire
workers. Instead, most of the money landed in the coffers of tire companies, mainly abroad but also at home."
Want to know what China first did in return?. They raised tariffs on chicken imports. "The Chinese tariffs reduced exports by $1 billion as US poultry firms experienced a 90 percent collapse in their exports of chicken parts to China."
Now, remember that I also said the American consumer would deal with higher prices. Here we go:
"Chinese-made unit values increased from $30.79 to $38.92 per car tire between 2009Q3 and 2011Q3—representing a 26 percent increase in the post-tariff era...Over the safeguard period, Chinese-made light truck tire unit values increased from $52.73 to $61.48 between 2009Q3 and 2011Q3—representing
a 17 percent increase during the post-tariff era. The average unit value of US light truck tire imports from AOC increased from $76.20 to $89.64 between 2009Q3 and 2011Q3—an 18 percent increase during the post-tariff era...Multiplying 3.26 percent by the approximate value of US-made tire sales during the post-tariff period ($18.1 billion in 2010), we conclude that the larger post-tariff spread cost American consumers $590 million on an annualized basis.
And HERE WE GO! THE KICKER
"The tire safeguards extracted an estimated $1,112 million annually from US consumers; at the same time, the safeguards put $48 million in the pockets of otherwise unemployed tire workers. The net effect was to reduce consumer spending on other retail goods by about $1,064 million, indicating that the safeguard tariffs probably cost around 3,731 jobs in the retail sector."
GOD PROTECTIONIST POLICIES WORK SO FUCKING WELL.
Christ. Read a real piece, not something from a Criminal Law writer.
http://www.wsj.com/articles/the-myths-of-chinas-currency-manipulation-1452296887
Oh yes, how could I forget the open-borders, globalist nonsense, the WSJ?
This is the same bullshit that believes an economy can survive on only consumption, with no investment.
Even if a US tire costs more than a Chinese tire, it contributes to a greater degree to the economy, because it fuels investment in the US production and keeps the money circulating in the US economy, rather than going overseas.
For example,
Say a Chinese tire costs $40, and a US tire costs $50. Sure, you'll be better off as a consumer with the $40 tire. That being said, most of that $40 dollars is going abroad and into the Chinese economy. So you save $10, but you've taken $40 out of the domestic economy. All of this would be fine, if the Chinese were doing the same on a similar scale (perhaps with a different product), so the balance of trade would be relatively even, but they're not, not even close.
In comparison, spending $50 on the US tire may cost you more as a consumer, but that money remains circulating in the US economy. That extra $10 goes to decent wages for blue-collar workers, to domestic firm investment in domestic manufacturing, and other beneficial results. The US economy also gains the $40 that would have otherwise gone overseas.
The Chinese have been ripping us off on trade for decades now. They have created massive trade surpluses with us, dumping their mostly poorly produced products on our shores, and extracting money out of our economy to the tune of hundreds of billions of dollars a year. We just haven't noticed yet, because they turn around and use those hundreds of billions to buy our debt (and collect interest on it!), in a sense injecting the money they are stealing through trade back into our economy (on loan).
Ain't life grand for the Chinese trade cheats?
Of course, the corporatists at the WSJ are all for it, since dirt-cheap labor and products benefits various multi-national corporations, who rely on our sham consumer economy.
But those minimum wage retail jobs will definitely make up for the loss of decent union jobs, jobs that made the US the greatest country in the world.
