Tariffs are Taxes too

I originally began this as part of what tariffs Donald Trump was suggesting earlier this year back in January. Now we see him at his element showing his true colors about Free-Market Capitalism and his ideas about it.


With the new 25% tariffs, the economy is going crazy, our allies are turning into our enemies by increasing tariffs on American goods, we're instigating a trade war, Gary Cohn leaves frustrated at Trump's economics and it seems as if we don't have any good news on this end. It seems there's only negative news but why? Well, it's because of how tariffs effect us regular Americans.

Well, judging from Trump's economic plans, which sadly have no concrete foundation other than, add one regulation and remove two and the tax decrease on the federal level, (and not controlling the rampant federal spending but then again, which president ever since FDR ever did that) he's around the ideas of Protectionism and Merchantilism. He's trying to bring back a 15th-century economic system which was ousted because of a guy might have heard of called Adam Smith who wrote the Groundbreaking On the Wealth of the Nations. (The first call to the Capitalist System.)

But let's focus on Protectionism and Merchantilism first. Protectionism is pretty much one of Trump's campaign promises, America First. American jobs, American manufacturing, and American citizens working. Which is great but when you ostracize the rest of the world, it makes things difficult. Numerous American companies work with foreign steel and even the military as noted by John Stossel on his video noting the failures of President Bush's trade tariffs as well as looking at how tariffs hurt us in the end. (https://www.youtube.com/watch?v=-5wwKf0-DME)

As for Merchantilism, the economic system is made to promote exporting of goods but never importing and allows government intervention in the market to manipulate costs and goods, being the antithesis of Capitalism. In fact, Merchantilism is being practiced as Neo-Merchantilism in developing countries in the world in hopes to upholster their economies but are hurting themselves by not getting the luxuries first world countries get like I-Phones, Computers, Better Cars, Base Foods, Steel, and Oil, etc.

But Trump's main idea is to make sure that we still have jobs. But Trump is unaware of the fact that Robots are making sure that manufacture cars faster and safer for us. So we're harmed less. And yes the jobs are dying but in an ever-changing economy, we always need new jobs. We need technicians and architects to build the robots, designers for blueprints, mechanics to make them, programmers to make the robots function properly. If you want another example, let's look at leisure.

Sadly, humans are a lazy lot and we love our leisure. And thanks to that and innovations in technology, we have robots to work in warehouses but we have more time to ourselves and people have used that to increase enjoyment of passions. We have more novels written and read than ever before thanks to Nook and Ipads (I prefer a good paperback myself), video games have turned into an economic conglomerate with people who know little of programming honing their skills to make independent games like Cuphead, Undertale, and Minecraft, also thanks to a little board game called Catan, people have taken a new interest in board games and a board game revolution came of it with Cards Against Humanity, Betrayal at House on the Hill, Apples to Apples, Dixit, Tokaido, and others. Theme parks have increased sales and to compete have hired people to program and create new ideas for rides like with the Disney company making Star Wars Lands all over the parks in the world and the upcoming Toy Story Land in Disney's Hollywood Studios. Ironically leisure has become a market all on its own.

But there's an aspect I've ignored. The title of this piece. Tariffs are taxes too. Albeit an indirect tax but a tax nonetheless. If steel prices are higher, Disney cant get steel for new rides, the military can't make the guns and ships and aircraft, car sales will decrease to lack of ready steel, no new buildings and homes and restaurants and offices. Ok, it's not that dramatic but it makes it a lot harder for the main large businesses to do business. Also, we have to deal with no avocados too. So Millenials are going to be pissed. And the average consumers too. Imagine the Chinese raise tariffs to 25%. That means we pay 25% more money out of our pockets and we have to budget more so than we already are due to the recession. All plastic containers, clothes, and other materials Chinese made are going to hurt our wallets more and with tariffs, it's going to make the poverty line bigger because of the horror of rising prices.

Basically, Trump thinks we're losing because of all this Trade. We're winning. But we all. In a free-market society, free trade is promoted and encouraged to raise the standards of living for all in the world, promotes peace and prosperity to all, and ensures we get the best of all over and even we can encourage business too. And President Trump ... If I may suggest a way to make America Great Again with the Steel Mills, why not cut the red tape regulations so we can make more steel mills and regulations on all other parts of the economy to keep it booming. You did a great job with the Tax Cuts and DeRegulations. Don't fuck it up.