Introduction I’m one of those who believe that all government intervention does damage to the market economy. Taxes shift costs and distort the allocation of resources. The government always implements regulations that waste resources or have no real justification. Most government deficits create an expansion of the supply of money, which has the same effect … Continue reading Trade Deficits, Tariffs, and Other Stupid Policies
Category: Taxation
Trade Balance and Math Quiz
Introduction Providing images (and videos) can raise provocative questions that words cannot. In this newsletter, I present an image that should prompt questions about the trade balance and the mathematical basis for determining U.S. trade policy. Trade Balance The following image shows the trade balance between the U.S. and China in 2001 and 2003. (I … Continue reading Trade Balance and Math Quiz
Bad Math for a Bad Policy
Synopsis President Trump wants to make changes in the trading relations with other countries. But, since, with few exceptions, countries don’t trade people do, he has proposed some very flawed tax policies. To sell his flawed policies, he has engaged in some very questionable math. Introduction Most of the knowledge and understanding I have acquired … Continue reading Bad Math for a Bad Policy
Better Than Tariffs
Introduction I discussed tariffs last week in terms of how they supposedly solve the balance of trade “problem.” But does a solution exist to the supposed problem that does not involve imposing a tax upon our own consumers? To answer that question I think we need to look at potential incentives for American companies to … Continue reading Better Than Tariffs
Tariffs Again
Introduction Tariffs seem to have taken center stage in most economic and financial conversations. I wrote about tariffs a couple of weeks ago in a publication that included the following topics. In order to not repeat myself I have provided you with a link to the previous post at the bottom of this publication. Tariffs=Taxation … Continue reading Tariffs Again
Let’s Discuss Tariffs
Synopsis The word "tariff" means "tax." Consumers end up paying all taxes. If politicians believe some consumers should pay more for the benefit of others, they should say so. To say other countries pay tariffs amounts to massive subterfuge. Tariffs = Taxation People shoud not confuse themselves about the nature of tariffs. They represent a … Continue reading Let’s Discuss Tariffs