The Morning Rant: Minimalist Edition

Tariffs as an instrument of economic policy are problematic. They will shift costs to imports, but they may dampen total economic activity, or at the very least shift capital to possibly less cost-efficient manufacturing. But that is an economist's discussion, and we will need several hands to do it correctly.

As an instrument of foreign policy, tariffs are wonderful.

Trump Vows 25 Percent Tariff for Canada, Mexico, Ramps Up Promised Levies on China

President-elect Donald Trump has vowed to impose an additional 10 percent tariff on any goods coming into the United States from China--over and above any tariffs he has already pledged to impose on Chinese products--as well as a 25 percent tariff on all incoming goods from Canada and Mexico. He cited Beijing's broken promises to stem the flow of fentanyl, while saying that Canada and Mexico have failed to address the problem of illegal immigration through their borders into the United States.

A tariff on the other hand? It is an immediate penalty, and one that is instantly felt by the entire country. Yes, those proposed tariffs will hurt the American consumer too, especially in the short term, as domestic products go up in price. But there is an argument to be made that driving domestic production is a very good thing, and is worth the extra costs associated with that shift.

But the geopolitical message sent will be clear and powerful. Stop making illegal immigration into America easy, or you will be considered an enemy. Stop flooding America with fentanyl, or you will be considered an enemy.

There are costs associated with every government decision, and an increase in the price of some goods is one of those costs of tariffs. Compared to the incredible mess that is our current chaotic and ineffectual policy in Ukraine, those proposed tariffs will be a paragon of efficiency.

They will hurt Canada, because Canada is hurting America. They will hurt Mexico, because Mexico is hurting America. They will hurt China, because China is hurting America. That is their purpose.

The Democrat-compliant media will focus on the economic side effects of those tariffs, and downplay their real purpose. They will decry the pain caused in the American heartland...you know, the people whose lives are an afterthought until they can be used as a cudgel with which to beat Donald Trump and the new paradigm.

That paradigm is that the people of the United States of America are more important than millions of lawbreakers crashing our border and destroying our traditional way of life. I think that the good people of the heartland will understand and approve of some temporary pain when they can see the obvious and immediate benefits of those tariffs.

[Crossposted at CutJibNewsletter]

posted by CBD at 11:00 AM

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