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TRADE WAR WITH CHINA BAD FOR THE ECONOMY, WORSE FOR THE KAPANSKIS

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BY DAN VALENTI

PLANET VALENTI NEWS AND COMMENTARY

(FORTRESS OF SOLITUDE, WEDNESDAY MAY 29, 2019) — The deviled details of America’s current trade war with China may be difficult to understand, given the byzantine nature of tariff application, their varying rates, and a number of other factors. The beauty of the issue for THE PLANET, however, lies in its nature. Tariffs as policy can seem abstract, but their effects hit the Kapanskis wallets and purses in a tangible manner. The hit is direct and painful in the higher prices they will pay for a number of goods.

THE PLANET‘s position is simple: Trade wars and tariffs are, on the whole, bad for America.

The best way to think of a tariff is as a “middle man” placed between two parties who otherwise would freely enjoy mutually agreed upon, mutually beneficial exchanges of services and, usually, goods. A tariff is a tax. Taxes do not stimulate economies. They may pay for “essential services,” a phrase in which the adjective has lost all meaning, but they do not help the country financially or otherwise.

Tariffs:

  • Create obstacles to otherwise fair trade.
  • Raise the price of imported goods.
  • Companies absorb the first wave of the arbitrary, added tax, which they
  • Pass along to consumers
  • Duty rates artificially hamper competition, which in turn
  • Discourages innovation, resulting in
  • Less consumer choice — less variety of goods at a more expensive price.

President Donald Trump did not impose tariffs for sound economic reasons. He uses them as a bludgeon to bully China into dropping their taxes on U.S. imports. Raising prices of imported goods because the other country is doing it fails in both common sense and logic. Trump’s irrational move only justifies China’s split with the U.S. on trade, speeding up the day when China supplants America as the world’s undisputed top economy.

When and if another country hits U.S. products with tariffs, the better response is to

  • Pursue innovation in production
  • Invest heavily in research and development, kind of like pumping money into stocks precisely when stocks are tanking.
  • These steps will produce products of better quality, offsetting dampened demand by foreign consumers caused by high tariffs.

For THE PLANET, increased trade in a global economy translates into greater wealth for America. The best trade is free trade. A noted expert agrees.

“Tariffs cost more than the benefits,” says Dr. Charles Trzcinka, professor of finance at Indiana University’s Kelley School of Business. “We have 200-year history with free trade.”

Great point. America’s history with free trade can correlate directly to this country’s prosperity. These two centuries of data support without question to value of free and open markets.

“The Trump administration has justified tariffs by repeatedly saying that China ‘takes advantage of us’ because imports are greater than exports,” Dr. Trzcinka says. “This is absurd. First, suppose we could buy all of China’s output for $1. The trade deficit would be millions of times larger and we would be far better off. This would be mean that Chinese would be working like dogs to make the Kapanskis rich. Second, as you point out, China does unfairly target American (and non American) industries with subsidies for their own competing industries, [by imposing] trade restrictions and tariffs. So do we. This is why both countries need to negotiate deals and stick with the deal with them.

“The third reason [why tariffs don’t work] is national security. Companies like Hauwei are critically involved with telecommunications and data. They are suspected of allowing the Chinese government to gain access to all sorts of secrets both military and non-military. China steals everything it can get its hands on. They demand ‘joint ventures’ where the Chinese company learns and then gets rid of the foreign firm. They do this to everyone on a scale that the world is concerned about. We are especially concerned about the theft of military technology. This is also a driving force behind the trade war.

“The point of the ‘Trans Pacific Partnership’ was to surround China with countries that have agreed on the rules of trade so that China would have no choice but to obey the rules. The TPP was rejected by both [the Republican and Democratic] parties. It was adopted by all the countries except for us (Japan, Australia, Vietnam, for instance). It would help if we joined it.

“Finally Trump has a political problem here,” Dr. Trzcinka adds. “People know China breaks the rules, so they argue just build it at home. But if China put rocks in their harbors to keep us out, it would be stupid to put rocks in our harbor. The best approach is allowing companies to be free to enter into whatever agreement serves their interest. In short, free trade.”

THE PLANET fully agrees. It’s time for President Trump to stop the futile attempt at bullying via tariffs and realize that the best markets are the freest markets. Mary Jane and Joe Kapanski agree as well.

————————————————————————————————————–

“Lay your sleeping head, my love / Human on my faithless arm”W.H. Auden, from “Lullaby”

“OPEN THE WINDOW, AUNT MILLIE.”

LOVE TO ALL.

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Jonathan Melle
Guest
Jonathan Melle

The United States’ #1 non-farm export is military weapons and related technologies. The U.S.A. has the largest market share of selling weapons to the World than any other country. Trump doesn’t want China to cut into our nation’s market share of selling weapons/technology. Also, China is building a global financial center that will someday rival Wall Street. The only 2 countries that don’t support China’s investment banking system are the United States and Japan. Like weapons sales, China’s investment banking system would cut into our nation’s financial market share. Trump is bailing out our nation’s farmers with billions of dollars due to their losses from his tariffs. But our farmers are an afterthought next to our market share of weapon sales and financial business. Trump wants to bankroll the global economy so foreign countries will buy our military weapons and related technologies. That is… Read more »

doomiedodger
Guest
doomiedodger

Great article and I totally agree. Almost all unbiased economists believe continuing this tariff war is going to hurt the American consumer badly. Yes it will hurt China also but they probably have the stamina to sit back and watch America melt down. They are a proud people and are not going to let the worlds biggest doofus make an ass out of them. Trumps ignorance of how the world works is going to bite us all in the ass hard.

Johnny99
Guest
Johnny99

China is our enemy and is an evil regime, and is trying to rule the world. Tienneman Square, concentration camps for religious beliefs, forced abortions.

https://www.foxnews.com/opinion/steve-hilton-trump-has-been-right-about-china-for-decades-while-the-entire-establishment-got-it-wrong.amp

Mr. Fritz
Guest
Mr. Fritz

I agree, ‘99!

Thomas More
Guest
Thomas More

I thought you were moving.

Mr. Fritz
Guest
Mr. Fritz

I am, in a few months. Tho I will continue to read the Planet and post as an out- of- towner. Do you have a problem with that, More?

Thomas More
Guest
Thomas More

No, I think its great. We’ll have two out of towners concerned about our town. Hope you can get a street list like Jonathans.

Johnny Absurdo
Guest
Johnny Absurdo

In Trumps world everyone is our enemy. And eventually they will all band together against us. Learn some history about how bullying usually works out.

Pat
Guest
Pat

Bullying is about silencing voices which the far left is very efficient at doing. It’s about destroying careers when people do not share your political beliefs.

Merrick Garland
Guest
Merrick Garland

I agree Pat!

Pat
Guest
Pat

I agree too Johnny 99.

The school committee
Guest
The school committee

The one thing I agree with Trump is on fair trade.It makes complete sense to want a equal shots at markets.American business wanted to use 3rd world labor and bring products back to American markets at tremendous profits.It was anti American labor and pro American business.

Magoo
Guest
Magoo

Dan You admit China taxes American and other producers goods through unfair tariffs. Using the money they extort, to prop up their production of cheap goods. Produced mostly by impoverished and slave labor. The trade deficit is greater than 3 to 1, making the pain the Chinese feel three times worse than what Americans will feel. America has a robust economy,China’s global growth has left them cash broke. Much like Reagan did to the Soviet Union forcing the wall to come down and Trump is now doing to Iran with same effect, Iranians will take back their own country. Trump will starve the Chinese and North Koreans into submission. Most Americans I feel would gladly pay a few pennies more For products to support their neighbors, right here at home. They will either pay through increased taxes or slightly increased prices. i prefer the… Read more »

Truthsayer
Guest
Truthsayer

The following is a blend of excerpts from looking at this situation with China: For years, China has been a poor country. The role of any government is to provide better lives for the governed. China has been doing that and selling its goods on the open market, and we’re all willing to buy these products. China has pumped that money not into corporate profits but into its economy and living conditions have improved. Our elected officials now demonize China for doing what our own government used to do. The loss of American manufacturing jobs can be traced to one thing – American corporate greed. Manufacturing has been moved to other countries with lower worker wages and often no benefits, and the extra profit has been pumped into executive salaries and corporate dividends. It’s further paid for by every one of us because corporations… Read more »

Truthsayer
Guest
Truthsayer

OFF TOPIC WARNING!

There is a Boston Globe article on what the job of District Attorney entails.

We used to do all of it before the recent election. Now, we’re totally off the rails.

Charlie
Guest
Charlie

It’s a must read, Truthsayer. OPINION | MICHAEL D. O’KEEFE The true role of the district attorney By Michael D. O’Keefe,Updated May 28, 2019, 5:01 a.m. 77 There has been more attention paid to district attorney elections across the country than in years past due to voter education campaigns by the American Civil Liberties Union, and George Soros, a funder of left wing causes, who has supported “social justice candidates” to seek election to these positions. One of the selling points in pushing the ‘social justice district attorney’ agenda is how important the district attorney is in the community. That is usually accompanied by apocryphal claims of people being warehoused in prison for small amounts of drugs. The social justice district attorney candidate makes grand pronouncements, and, as here in Boston, proclaims that entire categories of crime will no longer be prosecuted. This is… Read more »

Mr. Fritz
Guest
Mr. Fritz

Great post, Charlie.
George Soros sponsored social justice DA campaigns all over the country.
Best line from article – “deterioration of public safety and quality of life.”
Here in the Berkshires we have social justice warriors not only in the DA’s office but in the Pittsfield Mayor’s office as well.

Our new DA seems to be stalling on the Sheffield Fire case – “waiting for test results” – appears they are no longer firmly supporting their original theory that the husband killed his family and set fire to their home. “Evidence left undestroyed at scene” – what the hell happened there??

The school committee
Guest
The school committee

America warehouses prisoners for profit, keep them coming is their motto.There is a huge problem in doing this.

ProxyDate
Guest
ProxyDate

District Attorney Andrea Harrington said Tuesday that her office has ruled out other suspects in what early on was deemed a murder-suicide after a family of five was found slain in their burning home. “We have a good sense that we know what happened in this case,” she told The Eagle. “But because of the nature of this case, because it is so hard to understand for a lot of different reasons … we’re [still] investigating because we know how important it is to speak for the victims … and for the community to have a sense that they know what happened.” They have NO sense of what happened, they were quick to declare it a murder suicide, but now have to wait months for proof. The woman was getting into her car, she was dragged back into the house (first floor garage) and… Read more »

Mr. Fritz
Guest
Mr. Fritz

Thanks ProxyDate for the info on the Sheffield case. Harrington’s analysis from the getgo didn’t pass the sniff test. Both adult victims were patent lawyers. Did they cross someone? The murder-suicide theory just didn’t make sense based on the info given in the newspaper. Please keep us posted.

James
Guest
James

God help us is right. I’ll save you the time listening to this painful empty-headed drivel with the headline : “Shoplifting unless you’re a repeat offender is no longer a crime in Berkshire County.” Good luck to businesses, she just single-handedly crippled them, Otherwise she has done nothing, let alone “reform” anything. Oh, and Portugal was a complete waste of time because they have massive free treatment programs we won’t ever pay for.
https://www.wamc.org/post/six-months-successes-and-challenges-berkshire-da-harrington

ProxyDate
Guest
ProxyDate

That moon bat got rid of STRIVE and the LifeSkills program because she’s hemorrhaging money to keep her friends employed and to hire outside consultants to do her job. Did you know she hired back an ADA that was fired? Why was he fired? He didn’t file paperwork on time and ruined cases.
God help Berkshire County

Blare
Guest
Blare

Do you work in law enforcement? Where did you get those crime scene details?

ProxyDate
Guest
ProxyDate

First responders at the gym have been talking about it with people since the day it happened. Lots of local volunteers and professionals were on site.

Brian C. Marquis
Guest
Brian C. Marquis

From Capeless to Caccaviello to Harrington – that District Attorney’s Office is a colossal disaster. There’s more politics goings-on there than in our Statehouse.

Take it from someone who suffered financially, after pissing off two Lanesborough cops and their former chief, all because I demanded cops comply with a state regulation.

Imagine if you can pleading with cops to comply with the Mass. Code of Regulations; cops sworn to uphold and enforce our laws. Go figure!!

Harrington’s no different than her predecessors; she learned politics and voter preferences well during her years of inactivity. Thus, it comes as no surprise that she rehired Capeless et al.

“Andrew” Harrington’s a fraud . . .

And that’s the bottom-line!!

ProxyDate
Guest
ProxyDate

I disagree Harrington is a special kind of stupid and dangerous.

Wilson
Guest
Wilson

“Raising prices of imported goods because the other country is doing it fails in both common sense and logic.”

What? I also don’t see how “produce products of better quality, offsetting dampened demand by foreign consumers caused by high tariffs” works when tariffs can easily go higher

Ben Weldon
Guest
Ben Weldon

With 21+trillion in debt(and growing fast)does a trade war matter in the long run? The dollar will eventually collapse. The USA will undergo hyper-inflation. It ain’t gonna be pretty. Sorry to be so negative but you cannot deny reality.

Fake News
Guest
Fake News

Sounds like Moon bat delusions

Johnny Longdun
Guest
Johnny Longdun

You guys are.missing the whole reason for tariffs on China.the tax cuts.
All the corporations get breaks to come back here. All the Corporation have to do is not reinvest,and they will make a fortune short term. When inflation comes,we’re done. Planet should be aware many plaudits again on G p N H

The school committee
Guest
The school committee

Muellar said today its the job of Congress to use the report he gave as its the only constitutional and lawful way to hold Trump accountable.Mueller said he would have said Trump was not found to be guilty of a crime he he was not guilty…..he did not clear him .

Pat
Guest
Pat

Mueller is a very tricky Democrat along with the other Democrats who did this investigation. Very stupid for him to say that because he could not prosecute a sitting president he would not pursue anything against President Trump then why investigate President Trump in the first place? This whole thing has “shady politics” written all over it.

“Innocent until proven guilty” is the law of our land and for Mueller to go out there and throw red meat to the hate Trump media and far leftists is outrageous.

acheshirecat
Guest
acheshirecat

Jim Comey made a similar statement concerning Mrs. Clintons emails. He said she may have been extremely careless handling sensitive or confidential information and that no reasonable prosecutor would bring a case against her.
Here is his statement from back in July 2016

https://www.fbi.gov/news/pressrel/press-releases/statement-by-fbi-director-james-b-comey-on-the-investigation-of-secretary-hillary-clinton2019s-use-of-a-personal-e-mail-system

The school committee
Guest
The school committee

You have been told many times Pat that this investigation was not about Trump ,it was about Russian attacks on our elections.

Pat
Guest
Pat

No mention by the liberal media that Attorney General Barr who they have also been threatening with impeachment for lying about the Mueller report for weeks now, was totally let off the hook by Mueller as someone who told everything that was in the report.

X-Lachs Lounge
Guest
X-Lachs Lounge

Mueller belongs in prison for keeping innocent people in prison Fo 35 years. POS.

The school committee
Guest
The school committee

Trump defenders are talking nonsense,Mark Levin said Mueller was feeble.Fox Russian TV in America,we are crazy in America.

X-Lachs Lounge
Guest
X-Lachs Lounge

Mueller is a feeble pile of cat crap.

Shakes
Guest
Shakes

who is innocent? the people that plead guilty?

Acute Angina
Guest
Acute Angina

Unions owe their existence to corporations. No big business no unions.

The school committee
Guest
The school committee

Unions existance is because of labor abuse.Organized to stop the abuse.Unions made big business moral.

Acute Angina
Guest
Acute Angina

Unions are as imoral as big business. Unions need big business to scrounge off. The workshops of Pittsfield are full of tools stolen from GE. Generous Electric.

The school committee
Guest
The school committee

G.E knowingly poisoned it employees in pittsfield Ma.It knowingly allowed millions of gallons of PCB to leak and create a lake of pcb under Lakewood.The culture of how to run a company into the ground and make it almost worthless was born in Pittsfield Ma. and it was not the Unions it was leadership based only in squeezing another 10% out of every department and where is GE today?

Acute Angina
Guest
Acute Angina

If GE was still here providing jobs as it did before you wouldbe licking their boots.

X-Lachs Lounge
Guest
X-Lachs Lounge

Do you have names of anyone proven to die from PCBs in Pittsfield? Whose father here worked ar GE and died in his 90s? It’s very bad stuff that will kill you in your 90s.

giocometti
Guest
giocometti

China purges their population…in this country an inmate serves time in prison without being purged…in China an inmate in prison can have eyes removed, kidney removed, liver and limbs removed for the profit of the state…human purging is a way of life in China. We live in a very different world than the population of China.

Mad Trapper
Guest
Mad Trapper

Those stinking Chi -Coms have poisoned us and our animals.

We should !!!!have nuked the bastirtds in 1952, Truman was a pansy, McArther

The school committee
Guest
The school committee

Shoud have nuked,really.How much of the population of our globe would you murder to get things right.

Mad Trapper
Guest
Mad Trapper

Well your Mom should have considered abortion. That would be a good start.

Ask Chairman Mao about murder.

And the Clinton Crime Cartel

Gigi
Guest
Gigi

Dan,
I disagree with your viewpoint on the Chinese tariffs. I am more aligned with Steve Hilton’s viewpoint – see below. Our primary weapon against the Chinese is to torpedo their manufacturing-based economy.

https://www.breitbart.com/radio/2019/05/29/steve-hilton-joe-biden-taken-billions-dollars-bribes-chinese-government/

Spider
Guest
Spider

I’m with you 100%, Gigi!

C. Trzcinka
Guest
C. Trzcinka

We will not “torpedo” their manufacturing-based economy by charging ourselves more money to use it. Moving these facilities back to the US will not be easy or cheap. No company wants to try to do it. Of course, putting China under some pressure to avoid stealing technology is critical but punishing ourselves better be a very short run activity otherwise everyone will be worse off.

Sooner or later Brietbart will hire some journalists who understand economics.

Kermit Frog
Guest
Kermit Frog

The DA article was interesting. – was that the guy that ran and lost to Healy? We are doomed to failure if the public keeps electing these types. I disagree with Dan’s analysis re China. China might not be manipulating the dollar now but they have a long history of manipulation US currency and US markets and stock positions for their benefit There is huge manipulation of crypto currencies and they would do more on the dollar now but they are under the looking glass. The US doesn’t need more cheap goods. We have a wasteful Walmart society that buys for entertainment and quick thrills and throws out so much our landfills are overflowing. We should produce quality goods at home and pay those manufacturing people a living wage. We don’t need all the crap from China – in products and conducts.

Mad Trapper
Guest
Mad Trapper

excellent Kermit

The school committee
Guest
The school committee

China was asked less than 50 years ago to enter the western world free market capitalism.A tremendous amount of positive change has culturally happened.Markets wanted access to their labor force and the 1 billion new capitalism.They are very successful at their new wealth.Now we want to call in their advantages in the markets.

Acute Angina
Guest
Acute Angina

How are those Chinese labor unions doing?

Kermit Frog
Guest
Kermit Frog

Ok, and why not call in the advantage? If the US can’t afford to educate and offer medical care to their citizens maybe it’s time to reevaluate. Our workers are not well off.

Mad Trapper
Guest
Mad Trapper

TSC MOVE THERE!

Some here would pay the freight.

The school committee
Guest
The school committee

All Trump lemmings will pay.

Mad Trapper
Guest
Mad Trapper

You’ll pay when the basturds You welcome from the south get here. Tu madre es un gran puta

C. Trzcinka
Guest
C. Trzcinka

On this 30th anniversary of the Tienanmen Square massacre, we need to think a little about how “successful” China has actually been. They routinely inflate their economic numbers see https://www.washingtonpost.com/news/wonk/wp/2018/05/15/satellite-data-strongly-suggests-that-china-russia-and-other-authoritarian-countries-are-fudging-their-gdp-reports/?utm_term=.9dec4d309896

Johnny Absurdo
Guest
Johnny Absurdo

China likes to lend us hundreds of billions of dollars and then more each year. Let’s fix their asses and not borrow from them anymore. Trump has a long history of stiffing his creditors so maybe he can wipe out our national debt by claiming bankruptcy. Greece did it and so can Trump. MAGA

Mad Trapper
Guest
Mad Trapper

No money Chi-Coms were broke.

All that $#!t you’re selling without patents too.

Take TSC for free!!! Don’t barf!

Kermit Frog
Guest
Kermit Frog

Do you want your ex-wife to hold the mortgage on your house? That is what it’s like with the US borrowing so much money from China – a bad idea, maybe a disastrous idea. And why do we need to borrow money? To buy crap from Walmart …

CC The Maze Sun
Guest
CC The Maze Sun

The all new IPHONE model 911 will cost 33,000 USD. The price of a cup of coffee.

Kermit Frog
Guest
Kermit Frog

CC The – hahaha, that is awful and maybe true

Planet Valenti