President Obama does something right!
Posted by Mike Sylvester - 9/15/09 @ 6:20 pm - Filed Under National Politics
I have a series of posts about how badly President Obama has failed so far.
That being said, last Friday he did something that gives me some hope that he may do a few things that will actually help America.
Last week he imposed import tariffs on tires imported from China. China is of course condemning the move.
President Bush put a similar tariff on steel a few years ago and I supported that tariff as well.
We currently have a trade deficit that will eventually destroy our country. The United States absolutely must start ensuring that our companies can compete internationally on a level playing field.
President Obama did the right thing with this tariff. He should immediately put a new tariff on a Chinese import every day until China unpeg’s their currency entirely from ours.
Mike Sylvester
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5 Responses to “President Obama does something right!”
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Our own deficit spending, both public and private, is what causes the trade deficit. A tariff isn’t going to teach us fiscal responsibility.
Robert Enders,
What on Earth are you talking about?
The trade deficit is caused by an imbalance in trade and capital investment.
We need to protect American jobs and American companies by ensuring a level playing field and preventing unfair trade.
Mike
The trade deficit is a big problem. Why do we import so much more than we export? Is it because we borrow money to buy cars, TV’s, computers built over seas? Had they been built in the US, would the trade deficit be lower?
Is the trade deficit the result of competition for producing at the lowest cost? If so what cost increases does the U.S. have over China, Japan or other countries that reduce are ability to build it in the US?
China basically restricts or specifies what people get paid. If you pay them low wages and sell their goods and services at market rates, you reap a windfall. This is similar to slavery in my opinion. This allows the Chinese to buy US debt and public companies using human capital exploitation.
A tarriff is used to balance the inequities between two countries. the next step would to stop traiding with China to reduce the deficit and go without goods and services.
Why does the US save so little? Is it because high taxes? Is it because the Government takes 15.3% of wages from each workers and gives it to a non worker over age 62 to spend? This increases our cost, increases the need for some to borrow money, artificially stimulates the economy beyond normal expectations short term, and results in devaluation of the dollar. All again leading to exporting of US jobs.
Tariffs are a short term fix, but does nothing to fix the underlining problem.
We used to have fiscal responsibility until politicians kept saying we are the richest and we began to spend beyond our means. We are not the richest or wealthiest country per capita. We used to be.
Mike,
The trade deficit IS an imbalance of trade and capital investment.
When a nation consumes more than it produces, it must import the difference. That is a trade deficit. Deficit spending is what allows that to happen.
Robert,
You’re confusing the issue here. Just because I carry a high balance on my credit cards does not mean I shouldn’t complain when they overcharge me for something. A big problem, as you stated, is that we consume more than we produce. But Mike’s post was alluding to the fact that the Chinese aren’t playing fair. Your point is valid, but it doesn’t detract at all from Mike’s contention that the President should be watching to make sure we are not being ripped off by unfair trade practices.