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Is Protectionism a Good Thing? (Link)

Golf Cart Mafia Consigliere Posts: 3382 **3/18/16 9:47 pm**

I was taught that conservative economics by it's nature forbids protectionism and encourages free markets.

That what is best for everyone is free markets. While I understand some of the angst with OPEC and China, I am concerned that some of what Trump is espousing may cause inflation. Tariffs to make ourselves competitive with other countries and to cut the trade deficit on the surface sounds good. The realities are that it will ultimately cause the cost of living to go up for everyone. Of course this will effect poor and middle class more than anyone. In the short run it will make us feel good.

We can bring back some industries that have left the country. We can make socks and shoes again. I wonder if we had the industries, if we would even have a labor force that would perform the labor required. Sure if they paid $15 per hour to someone in a textile mill. We would make socks that cost $2.50 a pair cost 3.50. Not much you say, but that is 40% inflation. That is probably an example that is off by 20% or so but still. Is it worth it?

I am probably too simplistic in my example, I know, but I think we should bear in mind.

Most small nations want to protect fledgling industry. The reality is opening markets up allows for a better cost of living and makes the most of ALL capital. Human capital being the greatest.

http://www.adamsmith.org/blog/international/the-idiocy-of-the-protectionist-growth-argument/

Golf Cart Mafia Consigliere Posts: 3147 **3/18/16 10:43 pm**

You are correct, protectionism sounds great but has never accomplished anything other than recession, low growth, low productivity, low quality, low progress. The only ones that stand to gain are crony-capitalists trying to hedge their own industrial goals. Now you are cutting through the fog my friend.

Soooo.......

Golf Cart Mafia Underboss Posts: 3638 **3/19/16 4:46 am**

then you think we should just stay on the track we've been on for the last 28 years then? Losing steel mills, automobile factories , the coal industry, etc.? I don't know what the answer is but I do know that what we've done the last almost 3 decades isn't working. All we're getting where I live are new Walmart grocery stores, banks, drug stores, Dollar Trees, Dollar Generals and Family Dollars everywhere. We're losing mom and pop locally owned stores, department stores, auto industry plants, farms in the out-lying regions, and light industry factories. Minimum wage jobs have replaced jobs where people were making a decent living. Both spouses have to work in almost all families and daycare is $600 per month per child (without multi-child discounts).

I don't know what the solution is and neither did the last 4 presidents. I don't know that anyone else knows what the solution is for today. Is your community better off now than it was 8 years ago? Mine isn't. So I don't know - and I don't know anyone who does know and I don't even think I know someone who might know. I think the answer is for America to turn to God with our whole heart and honor the Lord who made us the greatest country ever and see what happens then. I cannot trust in man to bring us out of this mess - but I do trust in God to hear and answer prayer.

Acts-pert Poster Posts: 16646 **3/19/16 6:21 am**

This deletion of borders and free trade just leads us closer to one world govt.

I have never been a conspiracy theorist - but it appears Buchanan was right about this stuff after all.

Can that be the real reason the GOP establishment really hates Trump? This collusion of the last 30 years is being exposed by him? They couldn't care less how vulgar he is. There has to be a real reason they would ignore the will of their own party so vehemently.

<cue scary music>

Seriously, there is more going on than meets the eye. I don't know what it is yet.
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Golf Cart Mafia Consigliere Posts: 3147 **3/19/16 8:44 am**

Lots of isms sound great until they are put in practice. I think small amounts of tariffs applied in the right situations are useful. All out trade war and 45% tariffs on China would destroy our economy, no matter how much retribution you may desire

Golf Cart Mafia Consigliere Posts: 3382 **3/19/16 11:24 am**

Is too much capitalism a good or a bad thing.

Keep in mind that capitalism at it's core tries to make the best of all capital.

This cuts down on waste and makes for a more harder working society. Understanding that human capital is the most important of all and is the thing which we (if we are free) are able to make the best of. And that not all of us have the same gifts. We will not all become billionaires or millionaires or even hundred thousandaires. Smile

Reality is we CANNOT be anything we want to be as some liberal educators would have you to believe, but with a good dose of capitalism we can surely do better than extreme nationalism (think NAZI) No that does not mean we compromise our culture or values. Yes we should have clearly defined borders and laws regulating such, but we also should understand the value of human capital in the equation and act in our (all of our) best interest.