January 29, 2018

HE'S JUST TAXING WHAT HE DOESN'T WANT:

Trump's Tariffs Are Statism on the March : They benefit a small number of producers while raising costs for everyone else. (Jonah Goldberg, January 26, 2018, National Review)

Sometimes the government protects certain industries in order to goose employment, or in the name of keeping prices low for the people or high for the producers (e.g. farmers, favored industries, etc.). But such subsidies not only stifle innovation, they also end up hurting consumers or taxpayers or both.

If the government promises cheap, below-cost bread for all, the bakeries will go bust unless they are subsidized. Those subsidies would come from taxpayers, so we'd be paying the real price anyway. If the government taxes cheap washing machines from abroad, the price of washing machines will go up, hurting consumers (which is exactly what happened after the White House announcement).

Every form of statism -- from absolute monarchy to socialism to fascism -- involves the state forming an alliance with some faction or another and giving it preferential treatment. Protectionism is simply statism applied to trade. In short, it is a conspiracy against the public to raise prices, and nothing more.

Posted by at January 29, 2018 5:06 PM

  

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