Lawerence O'Donelll: Tariffs are against all economic policy across the board.

[white_wolf]

He said that on his show and I have to say, I totally disagree at least in principle. I think Tariffs would really help our economy along with giving tax cuts and benefits to those companies who create good paying jobs here in the US. Am I wrong on this issue or do you all agree?

[abelenkpe]

1. I agree

Lawrence is wrong if he is implying it would be bad for the US to encourage work to stay in the US.

[elleng]

2. He also made it clear that tariffs are/result in increased sales taxes,

that is, they are paid initially by those who purchase the goods and later assessed against producers.

And the reason he discussed it was because Trump proposed imposing tariffs on goods made in China.

[Donnachaidh]

3. Tariffs should be applied to companies who shifted jobs out of the country

They took away jobs and increased their profits -- they certainly didn't drop prices for us, did they?

Make them pay through the nose.

[Imajika]

9. Actually, they did "drop" our prices...

The reason cheap household goods and assorted trinkets and crap are available to all of us from Walmart and elsewhere for very low prices is because cheap labor overseas is producing them.

Overall, that may not be a good thing, but to say it doesn't "drop" our prices is just wrong. At some levels, all this stuff produced in 3rd world countries and nations with low cost labor most certainly does keep some things cheaper.

[Donnachaidh]

13. No it's not *wrong* -- have you purchased a washing machine lately?

You really can sit there and claim the prices have gone DOWN? Please share whatever it is you're smoking. :rofl:

Big ticket items have NOT gone down - if anything, the prices have gone up. And with the cheaper labor, the profits have gone up for these companies -- who should be paying heavy tariffs for those profits.

[bluestateguy]

4. The tariff used to be the primary revenue generator in the 19th century

I'd rather have a higher tariff and cancel NAFTA.

[xchrom]

5. He's wrong as rain. But where in positions of authority or media

Are voices that say other wise?

It's an idea that's no different than selling off the commons to private institutions.

Friedman & the Austrians have won the argument.

[mod mom]

6. That assumes a level playing field.

[Imajika]

7. Tariff's can be very dangerous...

...if they are done in excess. See Smoot-Hawley Tariff act. You slap tariff's on someone and you have to expect them to retaliate. Massive tariff's may cause a huge trade war that could be incredibly destructive to our exports and therefore our economy.

I am not against all tariff's of course, but you just have to be very careful. They are not the cure all many wish they could be.

[Redbear]

8. If the highest possible world GDP is the goal, I agree

But I dont think that should be the worlds no. 1 goal.

[The Magistrate]

10. Tariffs, Sir, Should Be Used To Equalize Wage Costs, Among Other Things

A tariff equal to the difference between the wage paid in producing a product, and a minimum or living wage standard should be assessed on all imports, where the former is lower than the latter.

[90-percent]

11. Thom Hartmann would disagree

Lawrence is flirting with "JUNK ECONOMICS" with this one fer sure!

And one of my new discoveries in progressive economists Michael Hudson (http://michael-hudson.com/2011/01/why-america-had-a-90-income-tax/) might also disagree that tariffs are bad. Tariffs seem pretty good in historical context.


-90% Jimmy

[tnlefty]

12. Understand that you won't get a broad agreement on this, However, I

agree that tariffs would be good and a great equalizer to help our economy.

I may be the wrong person to ask as I open a bottle of champagne to celebrate Milton Friedman's death. Nov. 6th, but I'll double check. Seems as if I should add Ayn Rand to my list.

[white_wolf]

14. That is awesome. I'll join you next time.

[tnlefty]

16. Please understand that neither is worth a good bottle, the

cheap stuff for Milton, and I'll add Ayn on my calendar.

[Sirveri]

15. What are worried we'll lose due to a trade war?

Everything is already gone.

The said, there also isn't much left to protect in terms of domestic industry, but at least a tariff would give a fighting chance to new upstart domestic production.

[Billy Burnett]

17. Right. Tariffs are supposed to protect domestic manufacturing.

The discussion is about as valid as debating closing the barn door after the cows have fled.

[tsuki]

18. They sure helped China. nt

[Motown_Johnny]

19. I am strongly pro tariff.

I also think some of it should be used to fund social security because the manufacturing jobs that have gone overseas is part of the problem with long term social security funding.

[provis99]

20. O'Donnell is flat out wrong.

There is a wing of economic theory that emphasizes that tariffs can be useful in protecting startup industries in the home country: Airbus is a prime example of how a fledgling company was protected from competition (Boeing) though trade restrictions and tariffs, until it was strong enough to compete on an even level.