Lone Candle
Champion of Truth
The U.S. trade deficit is a problem, and the best way to solve it is by a weaker dollar. Free trade is good, broad tariffs are bad, and the trade deficit is best dealt with by a weaker dollar.
https://www.youtube.com/watch?v=KRSpfG6hRTQ
“The Chinese factory charged me $10 for a cart that cost them $9 to manufacture. U.S. retailers bought it from me for $15, then sold it to consumers for $30.
To recap: The factory made $1, I made $5, and retailers made $15, minus freight and U.S. tariffs.
The freight costs went to shipping lines, U.S. railroads, truckers, warehouses, and America’s highest-paid union workers—longshoremen at the Port of Los Angeles. As for those tariffs: Do the Chinese actually pay them, as former President Donald Trump claims? That would be illegal, as U.S. Customs charges tariffs only to the “importer of record,” which must be a U.S. entity. The monies collected go directly to Uncle Sam and retailers add them to their cost of goods, as with any other expense.
So each Magna Cart created $21 in profits, of which 95 percent went into American pockets. Selling 5 million carts meant a $100 million gain to the U.S. economy. Yet the official trade statistics framed that as a $75 million addition to the trade deficit.”
…
“Wouldn’t American profits be even higher if these things were made in the U.S.A? That’s a big no, because many products simply wouldn’t exist. My original plan had been to manufacture in the United States. Then I saw the factory quotes, and I realized my babies would have to retail for more than $100. Thanks to China, tens of millions of Americans can now carry their chairs and gear to the beach with ease, and move heavy loads without tweaking their backs for under $40. (It used to be $30. Sigh.)
So why can’t we move all that manufacturing to other low-wage countries? Because only China has the massive workforce (800 million strong), the infrastructure, and the natural resources to supply 380 million Americans (plus 7.6 billion others globally) with every gizmo and gadget imaginable.
The nearly $500 billion that America imports annually from China enriches our economy by trillions. The math is so simple, you’d think even politicians could understand it.”
https://reason.com/2024/10/08/i-did-business-with-china-and-america-won/
“Check the U.S. Constitution, and you’ll see that Article 1, Section 8 clearly gives Congress sole authority over “Taxes, Duties, Imposts, and Excises.” Unfortunately, Congress traded away much of that power during the 20th century, beginning in the aftermath of the Great Depression—which was considerably worsened by a series of tariffs passed by Congress—and continuing with various laws passed in the 1960s and 1970s, as the Cato report details.
In theory, handing over those powers made sense. Lawmakers were more likely to be influenced by parochial interests and would favor protectionism that benefited some local industry, even if it came at the expense of the nation’s economy as a whole. Presidents, it was assumed, would take a more expansive view of the benefits of trade and would use those powers to reduce barriers like tariffs.
For a long time, that was true. It no longer is. Both Trump and President Joe Biden have favored protectionism, and have faced scant opposition from Congress or the courts.
If Trump returns to the White House in 2025, he would assume huge power over the flow of goods into the United States “without substantial procedural or institutional safeguards” due to the “broad and ambiguous language” included in many of those trade laws passed decades ago, Packard and Lincicome write.
The tariffs that Trump imposed during his term in office took advantage of many of those same powers.”
https://reason.com/2024/10/10/could-trump-impose-more-tariffs-without-congressional-approval/
“the four most prominent politicians in the country (sorry, Tim Walz) agree: U.S. Steel, a private company, should not be allowed to conduct a transaction with another private company unless the federal government agrees.
This is absurd—particularly because the deal is obviously in the best interest of U.S. Steel.
“We’ll admit that the competition for the dumbest economic policy is fierce these days—with prices controls on food, a 10% across-the-board tariff, and national rent control on the table,” opined The Wall Street Journal’s editorial board this week. “But opposition to the Nippon deal deserves careful consideration for this distinct dishonor given the deal’s manifest benefits and nonexistent harm.”
Indeed, Nippon’s plan to buy U.S. Steel gives the legacy steelmaker something that Trump’s tariffs and Biden’s blather about blue-collar jobs never could: A chance to actually become more competitive in the global marketplace. Among other things, Nippon has promised to invest $2.7 billion in revamping U.S. Steel’s plants.”
https://reason.com/2024/09/04/leave-u-s-steel-alone/
“Despite international sanctions meant to cripple Russia’s war machine, Russia has maintained an edge over Ukraine when it comes to artillery production and rate of fire.
Over a dozen analysts from the Royal United Services Institute wrote in a new report that Russia’s artillery advantage “is the single greatest determinant of the distribution of casualties and equipment loss, the balance of military initiative, the calculus of what is operationally possible, and thus the political perception of the trajectory of Russia’s full-scale invasion of Ukraine.”
Russian artillery is estimated to be responsible for more than 70 percent of Ukraine’s combat casualties.
The analysts at RUSI said that the West needs to disrupt the industries that are keeping Russia’s deadly and destructive howitzers firing before it’s too late for Ukraine.
Russia’s defense industry is growing through new facilities, supply imports, and mass recruitment, the analysts said. They said that, without interruption, Moscow will be better poised to strengthen its position in Ukraine within the next few years.
The report explained that “Russia is self-sufficient in many of its needs, especially in raw materials like iron ore, and may have enough machine tools and stored howitzers from the Soviet era to support its war in Ukraine.”
However, the analysts said, “the longer the war continues, the more Russia’s dependencies on foreign suppliers will become a weakness.”
…
“These vulnerabilities include placing sanctions on the supply of essential materials to Russia, preemptive purchasing of raw materials on the open market to prevent them from falling into the hands of hostile nations, or putting diplomatic pressure on countries to examine their domestic companies that are exporting goods to Russia.
One example the RUSI report gave was targeting chrome ore imports for barrel production. Another involved hindering the flow of machining equipment into Russia.
The analysts said that Ukraine’s Western partners should immediately prioritize disrupting Russia’s artillery supply chain because doing so for prolonged periods will make it more difficult for Moscow to maintain its howitzers and artillery ammunition.
This is critical for Ukraine. The analysts warned that “left on its current trajectory, Russian fire superiority will increase year-on-year and become less vulnerable to external disruption through pressure on the supply chain.”
The task potentially becomes even more urgent for the West as Russia continues to increase its security ties with China, Iran, and North Korea. The US has publicly expressed concern over Moscow’s deepening military relationships with its rivals and foes over the past few years.
Ukraine has managed to reduce Russia’s long-held artillery advantage and is increasingly taking steps to degrade its stockpiles of shells by using long-range drones to attack ammunition depots inside Russia, but more is needed to break Russia’s edge.”
https://www.yahoo.com/news/war-analysts-argue-west-needs-165537999.html
“Unfortunately, the poll also suggests that Americans—just like their elected officials—may be a bit confused on the subject.
Seventy-five percent of respondents indicated being “very concerned” or “somewhat concerned” “about rising prices of things you buy because of trade tariffs.” But a majority would also support imposing tariffs on certain products, under certain conditions, if they felt it would help American businesses. For example, 62 percent said they would support “adding a tariff to blue jeans sold in the US that are manufactured in other countries to boost production and jobs in the American blue jean industry”—though, notably, 66 percent would oppose a tariff if it raised the price of a pair of jeans by $10.
Further, when asked, “From what you’ve read and heard, who primarily is responsible for paying for the cost of a U.S. tariff,” only 47 percent answered that it was American consumers. The next highest answer was “Not sure” at 20 percent, followed by 15 percent who said the U.S. government pays, 12 percent who said foreign companies pay, and 5 percent who said foreign governments pay the tariffs.
Despite Trump’s claims that exporting countries pay tariffs, it is indeed consumers who pay in the form of higher prices. On the campaign trail in 2019, Biden claimed—accurately—that “Trump doesn’t get the basics. He thinks his tariffs are being paid by China. Any freshman econ student could tell you that the American people are paying his tariffs.” And yet as recently as last month, Biden was proposing 25 percent tariffs on imports from Mexico that use Chinese steel.
While not entirely consistent on the subject, the survey suggests that Americans largely recognize the positive effects of international free trade. It’s a shame, then, that our politicians don’t.”
https://reason.com/2024/08/08/survey-63-percent-of-americans-support-free-trade-why-dont-our-politicians/
Russia stands to lose $6.5 billion a year if Ukraine doesn’t renew a gas pipeline deal at the end of the year, report says
https://finance.yahoo.com/news/russia-stands-lose-6-5-220643939.html
The Russian Economy at War (2024) – Sanctions, growth, inflation & mounting risks
https://www.youtube.com/watch?v=8tHkwLSS-DE
Armed conflict is stressing the bones of the global economy
https://www.vox.com/world-politics/367258/globalization-shipping-economy-houthis-russia-air-travel-internet
CHINA – Trade War is Damaging Economy as USA & Europe Apply Increased Tariffs
https://www.youtube.com/watch?v=ZoTuiD_V3rE