The Tariff Issue | WHAT REALLY HAPPENED

The Tariff Issue

Wherever I look at US policy, foreign or domestic, I see only insanity, ignorance, and incompetence.

Take the issue of tariffs, which is Trump’s mistaken approach to bringing the jobs back home. The tariff “solution” overlooks that offshored US production counts as imports when US firms bring their goods into the US to be marketed.

The Chinese did not steal American jobs by selling below US cost. The jobs were taken to China by US global corporations, along with the technology and business know-how, for the sole reason of maximizing US corporate profits. Labor, made as productive as US labor by offshored US capital, technology, and business know-how, could be hired at much less cost in China and elsewhere in Asia due to the enormous excess supply of labor that overhangs Asian labor markets. The enormous cost savings went directly into US corporate profits, capital gains for shareholders, and bonuses for executives. Half and perhaps more of the “cheap goods” imported from China are the goods of American firms, such as Apple, Levi, Nike. They are products of US firms that are made in China for sale in the US. They are not “cheap Chinese goods.” Do you think an iPhone is cheap or a MacBookPro is cheap?

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