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Patrick Buchanan: Tariffs -- The Taxes That Made America Great

Goldhedge

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Patrick Buchanan: Tariffs -- The Taxes That Made America Great


By Patrick J. Buchanan | May 14, 2019 | 5:02 AM EDT




A shipping container is offloaded from the Hong Kong based CSCL East China Sea container ship at the Port of Oakland on June 20, 2018 in Oakland, California. (Photo by Justin Sullivan/Getty Images)

As his limo carried him to work at the White House Monday, Larry Kudlow could not have been pleased with the headline in The Washington Post:

"Kudlow Contradicts Trump on Tariffs."​

The story began: "National Economic Council Director Lawrence Kudlow acknowledged Sunday that American consumers end up paying for the administration's tariffs on Chinese imports, contradicting President Trump's repeated inaccurate claim that the Chinese foot the bill."

A free trade evangelical, Kudlow had conceded on Fox News that consumers pay the tariffs on products made abroad that they purchase here in the U.S. Yet that is by no means the whole story.

A tariff may be described as a sales or consumption tax the consumer pays, but tariffs are also a discretionary and an optional tax.

If you choose not to purchase Chinese goods and instead buy comparable goods made in other nations or the USA, then you do not pay the tariff.

China loses the sale. This is why Beijing, which runs $350 billion to $400 billion in annual trade surpluses at our expense is howling loudest. Should Donald Trump impose that 25% tariff on all $500 billion in Chinese exports to the USA, it would cripple China's economy. Factories seeking assured access to the U.S. market would flee in panic from the Middle Kingdom.

Tariffs were the taxes that made America great. They were the taxes relied upon by the first and greatest of our early statesmen, before the coming of the globalists Woodrow Wilson and FDR.

Tariffs, to protect manufacturers and jobs, were the Republican Party's path to power and prosperity in the 19th and 20th centuries, before the rise of the Rockefeller Eastern liberal establishment and its embrace of the British-bred heresy of unfettered free trade.

The Tariff Act of 1789 was enacted with the declared purpose, "the encouragement and protection of manufactures." It was the second act passed by the first Congress led by Speaker James Madison. It was crafted by Alexander Hamilton and signed by President Washington.

After the War of 1812, President Madison, backed by Henry Clay and John Calhoun and ex-Presidents Jefferson and Adams, enacted the Tariff of 1816 to price British textiles out of competition, so Americans would build the new factories and capture the booming U.S. market. It worked.

Tariffs financed Mr. Lincoln's War. The Tariff of 1890 bears the name of Ohio Congressman and future President William McKinley, who said that a foreign manufacturer "has no right or claim to equality with our own. ... He pays no taxes. He performs no civil duties."

That is economic patriotism, putting America and Americans first.

The Fordney-McCumber Tariff gave Presidents Warren Harding and Calvin Coolidge the revenue to offset the slashing of Wilson's income taxes, igniting that most dynamic of decades — the Roaring '20s.

That the Smoot-Hawley Tariff caused the Depression of the 1930s is a New Deal myth in which America's schoolchildren have been indoctrinated for decades.

The Depression began with the crash of the stock market in 1929, nine months before Smoot-Hawley became law. The real villain: The Federal Reserve, which failed to replenish that third of the money supply that had been wiped out by thousands of bank failures.

Milton Friedman taught us that.

A tariff is a tax, but its purpose is not just to raise revenue but to make a nation economically independent of others, and to bring its citizens to rely upon each other rather than foreign entities.

The principle involved in a tariff is the same as that used by U.S. colleges and universities that charge foreign students higher tuition than their American counterparts.

What patriot would consign the economic independence of his country to the "invisible hand" of Adam Smith in a system crafted by intellectuals whose allegiance is to an ideology, not a people?

What great nation did free traders ever build?

Free trade is the policy of fading and failing powers, past their prime. In the half-century following passage of the Corn Laws, the British showed the folly of free trade.

They began the second half of the 19th century with an economy twice that of the USA and ended it with an economy half of ours, and equaled by a Germany, which had, under Bismarck, adopted what was known as the American System.

Of the nations that have risen to economic preeminence in recent centuries — the British before 1850, the United States between 1789 and 1914, post-war Japan, China in recent decades — how many did so through free trade? None. All practiced economic nationalism.

The problem for President Trump?

Once a nation is hooked on the cheap goods that are the narcotic free trade provides, it is rarely able to break free. The loss of its economic independence is followed by the loss of its political independence, the loss of its greatness and, ultimately, the loss of its national identity.

Brexit was the strangled cry of a British people that had lost its independence and desperately wanted it back.

Patrick J. Buchanan is the author of "Nixon's White House Wars: The Battles That Made and Broke a President and Divided America Forever."
 

EO 11110

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spot on. the globalsts' cover has been blown. their open border free trade globalism is being exposed for what it is - wealth extraction scheme that doubles as a social engineering weapon

my favorite lie they tell is to blame the great depression on tariffs. we at gim2 know it was the central bank and nyc cohorts expanding and then contracting the money supply. but that is still their go-to attack on tariffs. that's the best they've got - and it's a ridiculous lie
 

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Joe King

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His re-writing and incorrect analysis of history aside, he admits it right there at the end of his rant... rarely able to break free.

There will be no "Breaking Free" using the current strategy.
Well that's good then because the goal isn't to break free of trade with China. Rather it's intended to merely level the playing field a bit when trading with China.
 

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Lets not forget the tariffs and corporate taxes that were in effect back then were in effect until they started applying the income tax to us little peeps. When they first went into effect there were no income taxes withheld from peoples ordinary exchange of money for labor.
 

Goldhedge

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Tariffs financed Mr. Lincoln's War. The Tariff of 1890 bears the name of Ohio Congressman and future President William McKinley, who said that a foreign manufacturer "has no right or claim to equality with our own. ... He pays no taxes. He performs no civil duties."

That is economic patriotism, putting America and Americans first.
That's a very good point.


That the Smoot-Hawley Tariff caused the Depression of the 1930s is a New Deal myth in which America's schoolchildren have been indoctrinated for decades.

The Depression began with the crash of the stock market in 1929, nine months before Smoot-Hawley became law. The real villain: The Federal Reserve, which failed to replenish that third of the money supply that had been wiped out by thousands of bank failures.
I remember in my youth talking to the old folks about the depression era.

They would tell me "There was just no money"...

I couldn't comprehend what that meant. Money seemed ubiquitous like water...

In my reading and comprehension since then I've come to understand more about the Federal Reserve system and that 'money is oil' in the economic engine...

The 'bankers' knew exactly what they were doing before, during and after the depression... enslaving a nation. Which was the plan since the inception of the 1st National Bank of the US.

I think that is why the Founding Fathers did when they put Article I Section 10 in the US Constitution. They 'saw' with their own eyes what bankers were doing with England and 'other' nations.

That's probably why Franklin said: "A republic, if you can keep it..."
 

FunnyMoney

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Well that's good then because the goal isn't to break free of trade with China. Rather it's intended to merely level the playing field a bit when trading with China.
A bit? Uhm, I don't think it will level anything, even a bit.

If it does, that bit by bit will get us back our manufacturing base in about 200 years if lucky, and a real "level playing field" never.

Neither of those things will happen under the global fiat system in place today even if we continue for a hundred years the so admired, "bit by bit" current strategy.
 

Joe King

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Neither of those things will happen under the global fiat system in place today
Do you realistically see that going away anytime soon?
 

FunnyMoney

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Do you realistically see that going away anytime soon?
That is a different question.

All I said was that under this fiat system we have today, the current strategy does not work. There are other strategies which could work, just not the strategy being used..

The current strategy being used won't help toward MAGA it will just cause more pain to the middle class - AND THEY KNOW THAT - IT IS THEIR REAL GOAL HERE.
 

EO 11110

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That is a different question.

All I said was that under this fiat system we have today, the current strategy does not work. There are other strategies which could work, just not the strategy being used..

The current strategy being used won't help toward MAGA it will just cause more pain to the middle class - AND THEY KNOW THAT - IT IS THEIR REAL GOAL HERE.
that's why every enemy of the working class is screeching about TRADE WAR.....INCREASE IN PRICES......OPEN BORDERS.....FREE TRADE.....TARIFFS LEAD TO WAR.....FIAT CURRENCY AND TARIFFS CAN'T COEXIST....TARIFFS KILL BABIES.....TARIFFS ARE NAZIS.....TARIFFS HATE US FOR OUR FREEDOMS....TARIFFS GASSED THE JEWS.....TARIFFS ARE RACIST.....TARIFFS HURT THE POOR....TARIFFS ARE UNAMERICAN.....TARIFFS AREN'T FAIR TO THE CHILDREN.....TARIFFS CAUSE GLOBAL WARMING.

they are trying to protect the scam that they and their paymaster put in place over the last 40 years....AT ANY COST

discernment -- google it
 

Joe King

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That is a different question.
No, it's entirely related. If it's not changing and there is no foreseeable point where it will be changing, it's called accepting how things are right now for what they are right now, and trying to make the best of it right now.
You know, so we can at least have some type of decent life right now.


If at some point that changes, we'll adapt.






All I said was that under this fiat system we have today, the current strategy does not work. There are other strategies which could work, just not the strategy being used.
Well of course. That's why throughout history the current (at the time) monetary system keeps having to change. It does so from time to time to temporarily correct the imbalances that have built up during the previous system.
....but whatever the system is, we all still have to be able to conduct our daily lives. Which means that no matter the system at the time, we are all better off when we at least attempt to make the best of it. Why intentionally suffer more than one already has to?


So back to asking, do you see it going away anytime soon?

If not, what are you going to do about it? I mean other than bitch about it?
....and don't take that personally, as we all do it sometimes. You just take it to the next level sometimes.
 

EO 11110

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tariffs are ALREADY WORKING in a fiat world -- see the upturn in manufacturing jobs since trump began using them in negotiations (reversing a long downtrend). imagine if he were to actually go all in with them, rather than just flirting with them. america would BOOM in jobs

propose flat tariff on ALL imports -- goods and labor. you want to import an indian computer jockey to replace an american? pay the toll. we cannot allow the globalist anti-american incentives to continue

ridiculous to claim that the world's one world currency owner is handcuffed by the monetary system that they own and control. in fact, it is the exact opposite. the american fiat dominance provides MORE control, not less in imposing import tariffs.

the lefist/globalist poster that is attempting to claim fiat money hurts american tariffs is exactly wrong. we own that shit and can bend it to our favor
 
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