Showing posts with label Tariffs. Show all posts
Showing posts with label Tariffs. Show all posts

Wednesday, October 28, 2020

Where Friedman Made a Mistake in Regards to Free Markets

Milton Friedman was a brillant economist, well-read and informed academic.



He brought forth a number of incredible, essential arguments to defend free enterprise and domestic economic liberty for businesses large and small. Don't get me wrong--I am all for free enterprise. Domestic economic freedom is an absolute must in any country, so that individuals can enjoy the highest standard of living possible.

BUT ... there is a place for government intervention in a number of issues.

1. Tariffs play an important role in securing the national security and interest of a country.

2. Illegal immigration and mass immigration are a bane for any country. No group of people, no mass movement of people should be permitted to overrun a country and complete change the contour and constitutional character of the nation.

This video exposes what the problem became for Milton Friedman's free market views--and Friedman himself admitted to the failure of one of his many tenets.

Check out this video from Reason Magazine here.

Friedman was convinced that the people of Hong Kong, China, elsewhere would rise up and oppose the taxpayer-funded subsidies for national businesses.

However, that never happened. Authoritarian regimes do not listen to the people whom they are supposed to care for. They do what they want. subsidize whatever businesses and interests they please. The pro-tariff arguments are stronger in these cases. Granted, tariffs can amount to a tax, but that only occurs if individuals purchase the goods from the other countries.

If authoritarian countries are subsidizing their goods and dumping them into other nations to undercut their industries, tariffs have to be imposed.

Friedman's argument in "Free to Choose" was not satisfactory for dealing with this problem. If a country lowers its tariffs in the face of countries with cheaper goods based on nationalized policies of currency manipulation and subsidies, the businesses in our country will fail and falter.

This problem occurs in Sub-Saharan countries, as well, in which Western nations offer a bunch of goods as "charity." For example, many countries will send in a bunch of free shoes to help an impoverished area. What happens, though? The local merchants go out of business, because they cannot compete with free."

Hence, the need for tariffs. The same idea is pervasive around the world. The United States was right to enact key tariffs to protect local industries against predatory policies from other countries. Open borders and open international markets can become problematic when these concerns are not taken into account.


Wednesday, December 12, 2018

Mr. Buchanan: We Are Not a Democracy—And the World Needs to Learn From Us


Economic nationalist Pat Buchanan opined last week that the United States’ fraught political climate is turning the world against democracy. In his article “How Democracy is Losing the Word”, he argued that our country’s sharply divided political culture, the corporate media’s obsession with Trump, plus authoritarian regimes’ economic successes were making democracy look bad. However, Buchanan’s repeat pessimism is based on a fundamental flaw, one which inadvertently exposes the very political and societal maladies he diagnosed that are generating upheaval in Europe, Canada, and throughout the Western World.



Early in his lamenting jeremiad, Buchanan writes: “And what will a watching world be thinking when it sees the once-great republic preoccupied with breaking yet another president?” But then he writes: “Among the reasons democracy is in discredit and retreat worldwide is that its exemplar and champion, the USA, is beginning to resemble France's Third Republic in its last days before World War II.” So, which is it, Pat? Is the United States a republic or a democracy? One of our Founding Fathers already answered this question: “A republic, if you can keep it.” The difference matters. Sadly, Buchanan’s seeming indifference to this fundamental distinction occurs often—and is too often overlooked.

Before debunking the so-called “crisis of democracy”, is it really true that the autocratic regimes he references are enjoying the peace and prosperity? China’s market economy within a brutal dictatorship is stalling big timev because of President Trump’s successful trade and tariff offensive. China’s militant repression against the Muslim Uighurs is disgusting Chinese and foreign nationals alike. Turkey has become a third-world dystopia, hardly a shining beacon of economic prosperity and national security.

But what else does Buchanan get wrong?

Despite the crises emerging in the corporate press, the United States is a remarkable testimony to good government, in that we are a republic. Counter-majoritarian institutions like the Electoral College and separate state government have ensured effective limits to very cultural malaise eating away at Europe. The corrupt media, for all its progressive posturing, could not stop Trump, either.
But why does Buchanan’s mix-up matter? How does his mistake inadvertently explain the reason for the Western Malaise he diagnoses?

First, let’s define the differences, which rest on more than who votes for whom. In a democracy, the rule of law is the rule of the majority, regardless of established norms and institutions.  In spite of the rights and responsibilities championed by Ancient Athens, the majority of Athenians voted for Socrates’ death because they didn’t like his views. The Wiemar Republic, a makeshift democracy assembled after Germany’s fall in World War I, transformed into a fascist tyranny under democratically elected Adolph Hitler.

To avoid these perverse outcomes, the American Framers disparaged democracy, which amounts to two wolves and a lamb voting on what—or rather who—is for dinner. Aristotle, himself a statist-elitist in Ancient Athens, described a republic as “rule by the many for the benefit of all”, in contrast to democracy, “rule by the many for the benefit of the many.” In a republic, the rule of law curbs the rule of the majority. Socrates would have received constitutional protections to disparage directly-elected rulers without fear. In a republic, no one is above the law, including the crowd as well as the individual ruler or the governing class.

The United States’ republican Constitution outlines institutions to channel as well as check and balance popular, aristocratic, and autocratic tendencies. Counter-majoritarian institutions like the US Supreme Court serve as final arbiters for legal disputes. State and local governments rebuff federal power. Enumerated powers and the Bill of Rights describe the boundaries for the government, not the people. These arrangements preserve individual liberty as well as local sovereignty, and both arrangements safeguard the interests of all.If the world is witnessing the demise of “democracy”, we should rejoice.



But will republicanism take its place? Anti-globalist protesters around the world may be rejecting “democracy”, but they need to understand why and agitate for something better. Populism in terms of policy outcomes is noteworthy. However, populism as the means for governing is not. Conservative and progressive nationalists plus the vast majority of the Yellow Jacket protestors understand that corporate interests and globalist activists have twisted democracy to their selfish ends. The answer does not lie in more “Power to the People”, but less power to the state. They must fight for natural law and natural rights, which means a constraint on government power altogether, not more democracy.

Pat Buchanan’s unintended confusion should concern us, since it reflects the underlying problems in the West. Younger generations around the world don’t know the difference between democracy and republicanism. They certainly don’t understand how democracy is inimical to individual and national liberty, while republicanism preserves both. The older (and newer) generation of reporters, liberal and conservative, don’t respect this difference, either, and their views are informing the public discussion as a whole. At the very least, conservative pundits who serve as the only source of good political science should understand this difference. It’s not ethnic nationalism, but republicanism that can Make the West Great Again.

If citizens in countries can’t distinguish between democracy’s failures and republican successes, these worldwide uprisings won’t accomplish lasting improvements. They rightly oppose the consequences of unfettered expansion of the state, and they are demanding that the governments be more responsive to “The People”. However, more government elected by “the people” will not bring about a limited government protecting citizens’ rights and safeguarding the nation from domestic insurrection and foreign invasion.

There is no demise of democracy in the United States, since we are not a democracy. Furthermore, Europe’s answers to open borders, higher taxes, diminished public safety, and cultural ennui sweeping those nations lie in the adoption of America’s republicanism: definition and protection of the natural rights of citizens, installation of principled checks and balances within government, and recognition of the nation-state to establish its borders, language, and culture—with a commitment to protect the Judeo-Christian principles that inspired the United States Constitution.

Thursday, April 19, 2018

Letter to the Editor: "I look forward to joining you again in the fight"

Good morning Arthur,

For the past several years, I have been largely taking a much needed break from politics while I focus on my growing family and business, and have largely steered clear from federal issues while I served as an Army officer in the California National Guard. But I have decided to hang up my Army uniform after 8+ years of service, and although I have no plans on another run for public office, I do plan on writing articles again on national and international subjects.



I invite you to please read and share my debut article since coming out of my political hibernation, published today in Breitbart News on the subject of tariffs, and welcome you to post your comments:

http://www.breitbart.com/big-government/2018/04/17/jesse-petrilla-small-businesses-tariffs-taxes/

Thank you, and I look forward to joining you again in the fight.

Jesse

Sunday, February 25, 2018

Rethinking Conservative Talking Points

Here are a few points of view that I had held for a long time without challenging their merits.

Since President Trump's election and inauguration, there are some ideas which I am challenging with clear evidence in our country and economy.

George Will once asserted, "Populism is not conservatism."

I used to accept this statement at face value. Will had asserted this statement on an ABC 7 "This Week" panel during Election 2008.

Will argued that the anti-elitism sentiment ultimately generates a larger government agenda.

Now I realize that populism which opposes the corrupt, anti-American, pro-globalist agenda is good.

And it in fact wants a reduction of the government into our lives. I cannot believe that I never challenged that precept from George Will. Populism is all about restoring power back to the people. Two Amendments in the Bill of Rights talk about restoring those rights.

Trump's pro-American nationalism, his pro-worker populism has enacted an incredible conservative agenda on many levels. The real sticking point for people like Will and the rest of the cloistered political elites is illegal immigration. They don't understand the costs or the consequences of this destructive problem. They don't live with illegal aliens ravaging their neighborhoods. They don't understand the pain and frustration of losing jobs and quality of life to ongoing foreign invaders.

The distant arrogance of these talking head conservatives is stifling.

John Stossel: "Trade deficits don't matter."

The argument about trade deficits, which means that a country is importing more goods than exporting, had concluded for me with John Stossel's analogy of a grocery store.

"I engage in a trade deficit every time I go shopping at the grocery store. If the store had to buy something from me in order for me to purchase something from them, they would go out of business."



I look back on this analogy, and I realize now how naive it is. A country is not a grocery store. Countries are not just markets or economies.

A free market is a necessary but not a sufficient condition for a free society. The United States is a free yet also sovereign nation. There are other nations near and far which oppose our free way of life. Why would we want to trade with them?

Reason.com: "Tariffs are bad."

I would allow for tariffs on a general scale if the income tax were repealed. A tariff is a tax which consumers would have to pay for, but that cost would be offset by no longer paying an income tax.

Tariffs are good for national security reasons. Why should the People's Republic of China dump cheap goods into our country, and they in turn use the money they are making to undermine us further?

These are some talking points I have learned to review and challenge now that President Trump is back in office. Note, however, that tariffs as a rule create higher costs and disproportionately affect different parts of the country. A full-on trade war with other countries furthered the economic recession that led to the Great Depression in the early 1930s.

Tariffs, if any are imposed, must be strategic.