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Holding My Nose in the Voting Booth July 26, 2016 8:00 AM | Tagged as Trump
WSJ July 25, 2016 (online version) – “Wharton Grad Trump Fails Economics” by Mary Anastasia O’Grady
O’Grady gets it! Trump doesn’t.
There are many reasons The Biz Bucks Guy is supporting Trump over Clinton. They include his policies on energy, ObamaCare, the Supreme Court, tax and regulation reform, the VA, 2nd Amendment, religious rights, and parts of his immigration stance. Trump checks many boxes. His opponent checks virtually none. However, The Biz Bucks Guy will hold his nose on November 8 because of Trump’s wrongheaded, populist position on trade.
Populism is any political dogma that appeals to the “little” people who are kept down by the elites. Both sides do it. Trump’s saga of adding tariffs to Carrier Air Conditioners for moving manufacturing to Mexico to keep “our jobs” in the US is an example. Trump must know what he is saying is certifiably wrong. He is pandering to a base of manufacturing workers, not advocating what is best for America. He is pushing populist baloney at the expense of the rest of the nation. He forgets to tell you his tariffs will make air conditioners more expensive for everyone. He forgets American consumers. This is bald faced protectionism, the philosophy that extended and deepened the Great Depression of the 1930’s.
As O’Grady makes clear, trade is good for America. Yes, we may have negotiated bad deals and to that extent Trump may be positioning himself for improve our deals, but NAFTA and TPP are moves forward to Americans.
Yes, jobs are lost from trade, but it’s not like Trump can do anything about it. In fact, most manufacturing jobs losses are due to advancing technology. The Biz Bucks Guy doesn’t want to seem cold hearted, but sometimes the cheese moves and workers need to adjust. O’Grady quotes a recent study that shows 85% of job loss is due to technology improvements. Education, or more correctly the lack of quality education, is the core reason our economy is lousy for so many. Too many displaced workers await the cheese to come back. They should re-educate, retool, and refocus themselves to find where the cheese is now. No one ever said the skills acquired in early adult hood would be sufficient for our entire economic lifetime.
In December 2015, our economy added 300,000 jobs. That’s nice. What is not well understood is we actually gained 5.4 million, but lost 5.1 million. In a vibrant economy, jobs are created and destroyed. Yesterday’s products are destroyed by today’s innovation. Trump would have the buggy-whip industry return to a vibrant business. Guess what Donald? No one needs buggy whips any more.
Trade benefits both trading nations. It creates well-being for both. Read the Biz Bucks Blog series on trade by searching on category “Trade”. The multipart posts “A Tale of Two Islands” should make this clear.
Meanwhile, The Biz Bucks Guy is looking for a wooden clothes pin for the voting booth. It will probably be made in another country, so US workers can wisely focus on more profitable ventures.
[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]
Posted in Cronyism, Trade | 0 Replies
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