| I get really annoyed when I hear people describe the | | | | completely overlook this intangible and allow the likes |
| imposition of trade tariffs as protectionist. Of course | | | | of China to benefit as they now are from this |
| in an atmosphere where the bumper sticker mentality | | | | market? I say no. The real challenge of course is to |
| seems to play a dominant role, this is often accepted | | | | devise a system where tariffs can be applied in a |
| as gospel. Trade tariffs can be protectionist as much | | | | manner that reflects the attractiveness of each |
| as they can be otherwise. What really determines | | | | market. |
| what purpose they serve is how they are applied. | | | | This system is not beyond our capability to develop. |
| Tariffs of course can be used towards any number | | | | But as long as we keep viewing tariffs as being |
| of purposes. The only truly economically beneficial | | | | totally about protection and the stymieing of trade, |
| way to view and treat tariffs is as a market | | | | then there is little chance this will ever be done. One |
| premium that fully or partially monetizes a set of | | | | possible approach could be to have market driven |
| values in a given market-place. For example, the | | | | tariffs where companies bid within a certain ban to |
| attractiveness of the American market-place is in | | | | pay a certain amount tariffs on goods being |
| large part due to its level of developed consumerist | | | | exported into another country. If the market is rich |
| tendencies that are themselves an offshoot of the | | | | and attractive as the US consumer market is, then |
| level of freedom accorded us by a constitution | | | | companies may find it worthwhile to pay a higher |
| rooted deeply in personal choice. We cannot | | | | rate given the potential level of profits. Of course |
| therefore undermine the value of all of this by | | | | this is just a simplified approach but the general idea |
| allowing other countries who have chosen other | | | | is to have a market mechanism to price some very |
| approaches to organize their society, approaches that | | | | important economic intangibles and have that price |
| have produced less attractive domestic markets, to | | | | reflected in the tariff. |
| ship their goods into ours with no consideration at all | | | | To continue to ignore the cultural differences across |
| for the fact that we do have one of if not the most | | | | societies that result in some markets being rich and |
| attractive consumer markets in the world. | | | | robust and some being poor and unstable, and |
| We must therefore use tariffs to capture this value. | | | | pretend that the main reason for this is the |
| Indeed this value is itself maintained by the way our | | | | imposition of tariffs, is to completely misunderstand |
| society is organized, the institutions that support the | | | | the purpose of trade tariffs. Is anyone really thinking |
| underlying values such as our courts, our army and | | | | here or have we become a nation that glorifies the |
| free civil society. All of these contribute to wealth | | | | bumper sticker mentality so common across talk |
| creation and the development of an attractive | | | | radio? |
| domestic consumer market. So do we just | | | | |