On Steel Tariffs, The Math Just Doesn't Add Up

[libertybele]

On Steel Tariffs, The Math Just Doesn't Add Up

 Jeffrey Dorfman , Contributor

President Trump indicated last week that he will impose tariffs on imported steel and aluminum, most likely taking the official action this week. While there is still a chance he could change his mind and nobody is quite sure if the tariffs will cover all imports or only imports from specific countries, some things are certain. In particular, these tariffs will hurt the U.S. economy, tax all American consumers, and cost more American workers their jobs than they will protect.......

...........The really bad trade barriers are when you take action against products that are what economists call intermediate goods, something used as an input to make something else. Steel is one of the most widely used such inputs, being used to produce cars, trucks, buildings, highways, home appliances (like washing machines), and thousands of other items. Because so many American jobs manufacture things that use steel, the damage done by making steel more expensive is massive. In fact, a study done when President George W. Bush imposed tariffs on imported steel found that more American workers lost their jobs in steel-using industries than the number of jobs in the entire U.S. steel industry itself..........

..........In fact, because steel and aluminum are both so prevalent in all forms of transportation, making them more expensive will raise the price of virtually every good we buy, since even products with no steel or aluminum content must be transported to a store near us or shipped to our house. It is surprisingly difficult to find a product that will not be impacted at all by these tariffs.

The math here is pretty simple. There tariffs may protect at most a few tens of thousands of jobs for American steel and aluminum workers. In return, they will make almost every product we buy a little more expensive (and a small number of products much more expensive). Several hundred thousand American workers will lose their jobs because those higher prices mean consumers will buy less of what they make. The only explanation for such a policy is that a favored few have secured political influence at the expense of the country as a whole. The way I do math, that just doesn’t add up.

https://www.forbes.com/sites/jeffreydorfman/2018/03/04/on-steel-tariffs-the-math-just-doesnt-add-up/#347699d95615

[Suppressed]

Of course it adds up.  When we imposed steel tariffs of 8-30% for a year and a half in 2002, we lost 200,000 jobs as a result (representing almost $4 billion in lost wages from February to November 2002 [Francois and Baughman, 2003]). 

Those lost wages add up and add up.

[libertybele]

Of course it adds up.  When we imposed steel tariffs of 8-30% for a year and a half in 2002, we lost 200,000 jobs as a result (representing almost $4 billion in lost wages from February to November 2002 [Francois and Baughman, 2003]). 

Those lost wages add up and add up.

Indeed.  Lost wages, lost jobs ... not to worry ... Trump and cronies are going to make a fortune on this!

[Hoodat]

Of course it adds up.  When we imposed steel tariffs of 8-30% for a year and a half in 2002, we lost 200,000 jobs as a result (representing almost $4 billion in lost wages from February to November 2002 [Francois and Baughman, 2003]). 

Those lost wages add up and add up.

The envy crowd doesn't give a damn about that.  All they care about is that we buy more crap from Mexico than they buy from us.  And that's not fair!

And just like every other liberal, they ignore human nature by thinking that other countries will not retaliate with their own tariffs.  They seriously imply that slapping new taxes on foreign steel - taxes paid solely by US consumers - will miraculously cause trade deficits to go away.

[edpc]

This will probably be another crazy ass thing that Trump says and never does.  Then, the usual suspects will all dance around the maypole saying we were worried about nothing.  The reality will be, they realized tariffs, like ignoring due process, was a dumb as bleep idea, so they canned it.

[Suppressed]

The envy crowd doesn't give a damn about that.  All they care about is that we buy more crap from Mexico than they buy from us.  And that's not fair!

And just like every other liberal, they ignore human nature by thinking that other countries will not retaliate with their own tariffs.  They seriously imply that slapping new taxes on foreign steel - taxes paid solely by US consumers - will miraculously cause trade deficits to go away.

I think a lot of it stems from people never learning TANSTAAFL.  https://en.wikipedia.org/wiki/There_ain%27t_no_such_thing_as_a_free_lunch

It's tempting to some folks to think that they can somehow magically beat the market, that there's some free stuff available, some perpetual motion machine out there.  The tariff freaks are like their kin in the Politboro, thinking they can somehow artificially create wealth by controlling things, when all they do is stifle it.

The fact is, it's all just shifting stuff around, and by sticking fingers in, you just reduce efficiency.

[Suppressed]

Indeed.  Lost wages, lost jobs ... not to worry ... Trump and cronies are going to make a fortune on this!

Yes...it's a wealth transfer from American consumers to these cronies, including union bosses.

[libertybele]

This will probably be another crazy ass thing that Trump says and never does.  Then, the usual suspects will all dance around the maypole saying we were worried about nothing.  The reality will be, they realized tariffs, like ignoring due process, was a dumb as bleep idea, so they canned it.

Quite frankly, I find it deplorable that the President of the United States announces some "crazy ass" (your words) thing in the first place and then doesn't do it.  So in essence ... Trump doesn't mean what he says, unless he actually does it and one never knows until it happens or doesn't happen.  Got it.  Good to know that we have a President whose words we can't trust.  Sort of like his words on amnesty!

[Formerly Once-Ler]

Indeed.  Lost wages, lost jobs ... not to worry ... Trump and cronies are going to make a fortune on this!

http://www.newsweek.com/carl-icahn-sold-millions-steel-stock-donald-trump-tariff-announcement-829029

Former Trump Adviser Dumped Millions in Steel Stocks Days Before the President Announced New Tariffs

[edpc]

Quite frankly, I find it deplorable that the President of the United States announces some "crazy ass" (your words) thing in the first place and then doesn't do it.  So in essence ... Trump doesn't mean what he says, unless he actually does it and one never knows until it happens or doesn't happen.  Got it.  Good to know that we have a President whose words we can't trust.  Sort of like his words on amnesty!

Amnesty, gun control, tariffs, or anything else.  Just listen to what his spokes people have said in the past couple days.

On tariffs....

CHUCK TODD:

So this is going to happen this week for sure? The way he said it, 25%, 10%?

SECRETARY WILBUR ROSS:

Whatever his final decision is is what will happen.

CHUCK TODD:

Meaning this isn't a done deal.

SECRETARY WILBUR ROSS:

I didn't say that. I just said what he has said he has said. If he says something different, it'll be something different. I have no reason to think he's going to change.

CHUCK TODD:

[Laughter] What does this mean? You just said, "Well, he may say this, and he may say that."

SECRETARY WILBUR ROSS:

No, I didn't say that. I said he is the one who makes the decision. He has made a decision at this point, 25 and 10. If he for some reason should change his mind, then it'll change.

Gun control.....

The president thinks we need to expedite the process. He wants to make sure that if somebody is potentially harmful to themselves or other people that we have the ability to expedite that process," she said during a press conference on Monday.

"Still want to have due process, but we want to make sure it is not tied up for months and months and months, and someone that could potentially be dangerous is allowed to have a gun without us being able to expedite that process.”

We all heard what he said.  The only thing he wanted to expedite was violating the 2nd, 4th, and 5th Amendments.  So, essentially, he doesn't mean what he means or say what he says until he actually does it and that's subject to change.  Gotta keep up with the multi-dimensional thinking. 

[txradioguy]

But...but...but...if we fo back to the era from post Civil War to the decade before WWI tariffs worked like a dream!

That's the truth bomb y'all! /S