Trump’s plan is simple. Tariffs are imposed to make America great.
First, we need some definitions. Tariffs are fees charged to foreign countries for the privilege of selling product to consumers in the home country. Such as: Japanese made cars sold here in the United States. Great means of a high quality that is highly regarded, or respected.
Let’s talk about that.
Trump’s Plan
is simple. Let’s take the Toyota 4Runner, a popular SUV here in Colorado. Its MSRP is around $42,000. If the tariff on Japan is 24% ($10,080) and that is passed on to the buyer – the cost becomes $52,0800. A Ford Bronco is $40,ooo.
Trump’s plan is meant to encourage American consumers’ to buy that which is made in the USA. His rationale is that that will ultimately make America, and its people, more secure and prosperous. Trump thinks this is in tune with the American ethos of individual freedom and gusto.
How it works
is also simple. Cost conscious American consumers can save around 10,000 dollars, or 25%, if they buy locally. This also benefits their neighbors, i.e. other Americans (aka The People.). Because the demand for the Bronco will increase. Consequently, Ford Motor Company will have to make more. Moreover, this will have a cascading (Not a trickle down.) effect all down the economic stream–from auto workers to parts manufacturing. Additionally, all local businesses. Subsequently, leading to more local employment. Which means more money in circulation. Furthermore, that will lead to all other manner of economic activity and business.
The Model
is in concert with the American ethos and spirit. Indeed, The American Dream–that of hard work leading to a life in pursuit of happiness.
Alright. Now we need agreement on what constitutes happiness. I submit happiness is made up of six components:
- Good health
- A strong sense of self (Ego Identity)
- Congenial friends and affiliations
- Sufficient resources
- A pleasant environment
- Comfort and luxury
The question then becomes who is responsible for those six interconnected parts? The State? i.e. the government, or the individual? i.e. The Self. In other words, are you the primary agent of your own life? Or a victim of powerful others? Alternatively, is it simply a matter of chance and luck?
Barriers
to happiness are, of course, powerful others and bad luck. Which can lead to bitterness, anger, hopelessness, depression, and despair. Those emotions can have a myriad of outcomes. From revolution to war to victory; or defeat and death.
The Fortunate Few
who have benefitted from good luck and power sit atop the hierarchy that is the power structure in America. Its driver is money and wealth – earned via hard work, or inherited. Does it matter?
What matters is what one does with power. Another definition. Power is the ability to compel an other, or thing, to obedience. In other words, bend It to your will. In America, we grant power to the government. The government is elected via a vote by The People. Those elected representatives are supposed to be a check on the fortunate few.
History tells us that instead, the fortunate few reign over those elected. The government becomes just another tool of the powerful.
However, the fortunate few are now squirming in their fancy seats because The People elected a man, Donald Trump, who isn’t afraid of them. Moreover their power. He is disobedient.
Trump’s Plan
is simple. Empower The People to take control over their own lives. A tool he has as POTUS is executive power. He’s using that to impose tariffs on foreign countries to encourage The People to look to their neighbors for the products they need and want. It’s simple.
Get to work. Build it here and buy it here. Take pride in your agency and ability, whatever it might be. The fortunate few will be just fine. If they want Italian suits, German cars, Swiss watches, French wine, Chinese art, etc.? They’ll just have to pay a tad more. They can afford it.
I like Trump’s plan.
My Life
was also one of disobedience and defiance. I took to heart the Chinese poem (Irony) “Chop Wood and Carry Water” from an early age.
I was happy, if not wealthy and powerful. Building my own home, growing food, and composting and recycling waste was rewarding. Back in the day.
Is such a life even possible now? Maybe, if we use our own power, our wit and brawn to chop wood and carry water.
Good luck.
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Actually shared my comments and video form there. I’m not sure that Trump knows what he’s doing, I think the better question is what are the people behind him trying to do? I think today was just as likely to be about profiteering… Hey watch guys, I’m going to announce a delay in the tariffs so put your money in to the market!
The checks and balances were put there for a reason.
Hi Bill, you might be right. There’s definitely in-fighting. W/r/t Trump, maybe – but he’s been consistent for 40 years. He believes in the American Dream.
What about the Nuggets? What’s your take?
One thing I have always believed is a component of “happiness” is choice. You make choices, we all do. And they are usually either good or bad. If you make good choices, and make enough of them, good things usually (not always) will happen to you. If you make bad choices in life (and again, make enough of them) bad things will happen to you. I never really understood that until I was able to chat briefly with former Notre Dame and South Carolina Head Coach, Lou Holtz at a football game. The more I think about it, the more I believe it. But you are also correct in your assumptions, and your conclusion! Geez, I love reading your work.
Thank you much, Rich. I, too, enjoy reading your posts, and your comments here. 🙂
I agree about choice; however, one often doesn’t know the outcome before one chooses.
“When you come to a fork in the road, take it.” Yogi Berra. Some people freeze because they’re afraid of making a “bad” choice. Others rationalize any decision they make and turn it towards their liking. “Lemons into lemonade.”
Sports is great because there’s a scoreboard and the outcome is undeniable. However, some in the business still find ways to rationalize. The latest example would be the Denver Nuggets firing Coach Malone now. And there’s the Masters (golf) starting today. I love this time of year! Recall in my book, “Failing to learn from losing”? Spieth has never been the same golfer since. I wonder how he’s doing otherwise. If he’s happy?
Coincidently, I clicked on ESPN Thursday and at that very moment was a feature on Stieth. Ten years after he won The Masters (2015); and 9 years after I wrote about him in ‘Election 2016’. He says he’s happy, because he’s found a work/life balance. Winning isn’t everything – his family is. He’s finished “in the money”; but never won again.
My 2nd favorite small business, Lumber Capital Log Yard, decided to put up a video about how Tariffs will effect them: https://www.youtube.com/watch?v=4oftoeQP3uc&list=UU3LT-e7q8bRr4bf2OUrglDw&index=1
It’s interesting and right on point, I think. First, no one, ever, likes uncertainty. That is an unpleasant state of mind. What is certain? Death and Taxes, as the cliche goes. Emerald speaks to that – “cliches”. The Boss says, we ought to all do what we say, which is build and buy American. Anyways, It’s good stuff and relates to a previous post, here, on logging, wood, and trees. 🙂
Hey Mark, it has nothing to do with your overall point, but for some reason I enjoyed your flourish of “Italian suits, German cars, Swiss watches, French wine, Chinese art.” Nice musical sentence there.
I’m economically illiterate, so I’m just trying to hang back, read what I can, and try to understand the tariff issue as best as I’m able while withholding judgment. Most of what I’ve read has been negative, so it’s interesting to read your perspective.
Thanks, Mike. You speak for millions of people. 🙂 Emerald and her father, of LCLY make sense, most of which is about uncertainty.
Nobody really knows how it’s going to all shake out, even the experts. Thanks again for reading. Hang in there and take care of yourself.🤞
I’m reading a biography of Abraham Lincoln and he was all for tariffs over taxes.
“therefore, Lincoln reasoned, to abandon the protective tariff, ‘must result in the increase of both useless labor, and idleness.'”(p. 86) This was in his first foray into politics in 1846.