THE DONALD’s POSITION ON TRADE WOULD HAVE SERIOUS CONSEQUENCES … plus … SOX SWEEP OF YANKS INCLUDED A FIRST IN MLB HISTORY
BY DAN VALENTI
PLANET VALENTI NEWS AND COMMENTARY
(FORTRESS OF SOLITUDE, MONDAY, MAY 2, 2016) — THE PLANET would like to share this excellent piece by our long-time friend, colleague, and economic mentor, Dr. Charles Trczinka. This piece was first published in the Indianapolis Star.
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BY DR. CHARLES TRCZINKA
Special to Planet Valenti News and Commentary
It has been fun to watch progressives at Indiana University cringe at Donald Trump’s crass and offensive speech. He simply can’t be presidential. He thinks it’s boring and makes fun of it. I imagine our progressives quivering in safe zones from all Trump’s micro-aggressions. But the fun comes at a very high price. Trump has consistently and repeatedly argued that Americans are being taken advantage of by international trade. He is demanding high tariffs (taxes) on imports from China and Mexico. We need to realize that this will start a trade war with both China and Mexico responding. It is a war that will devastate this state.
Indiana is ranked 8th in the nation in international trade. Transportation equipment and the life sciences (primarily pharmaceuticals and medical devices) are Indiana’s leading exports with $10.5 billion and $8.7 billion in value, respectively. The rest of the top five export industries in Indiana are industrial machinery (which includes engines) at $4.2 billion, miscellaneous manufacturing at $2.1 billion and computer and electronic products at $1.8 billion.
About half of Indiana’s $35.5 billion in exports went to our nearest neighbors Canada ($12.2 billion) and Mexico ($5.0 billion). People are angry, especially after Carrier, and demand the government do something about the harm that these companies cause. Trump promises to impose tariffs — aka taxes — on imports and taxes on companies that want to move. Our trading partners will respond to our high tariffs with their own tariffs and this will cut Indiana’s exports. Indiana employers will have to slash jobs here or move production overseas. Currently Indiana has below average income and needs these exports expanded, not contracted. We cannot expand income and jobs if anyone in Washington adopts “economic nationalism,” which is little more than government protection for companies that get a lot of press.
Trump has become popular at exactly the wrong time.
I understand how nice it is for someone to smash at political correctness, but we cannot allow Trump to destroy Indiana’s exports. This economy needs more freedom not more deals. We need freedom from regulation, from political cronies, and especially freedom from trade “deals.” Let’s keep the consumer in charge of the market place and keep the deal-makers on the sidelines. The last thing Indiana needs is the economic nationalism championed by Trump.
Trzcinka is a finance professor in Indiana University’s Kelly School of Business.
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We thank Dr. Trczinka for the piece. Here’s THE PLANET’s reply:
Chuck:
Love the piece, especially the line about how much fun it is to watch progressives (aka liberals) cringe at The Donald. Actually, we agree with your points. We want free trade and certainly don’t believe in tariffs used as and for political punishment.
Companies (US and otherwise) should have the right to take their manufacturing to wherever they can get the best price for labor while still ensuring quality. If that’s in American, so much the better. If not, then it’s the marketplace asserting itself, as it should.
We Americans say we love freedom, but we don’t. We lately want all sorts of impositions on free speech, freedom of assembly, free trade and the like, and we want Government to be the imposer. Not THE PLANET. We am willing to extend freedom to its realistic limits and accept the consequences, good and bad. For trade, this means that, in a global economy, companies will shop for the what’s best for their profitability. It if means taking operations somewhere else, so be it.
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Once in a Lifetime at Old Fenway
Fans of the Boston Red Sox had a good weekend, to be sure, with the team’s three-game sweep of the New York Yankees, a broom ride that put the Red Sox in first place. What THE PLANET enjoyed most, however, was an occurrence in Friday night’s game. Something happened that night that has never happened before in the long history of Major League Baseball. Nothing like it has occurred in the 17,790 games the Red Sox have played since 1901 or the 17,681 games the Yankees have played.
What would that be?
It was the first time in MLB history that two players 40 years old or older homered in the same game. Alex Rodriguez connected for the Yanks and David Ortiz for the Sox. A-Rod‘s blast gave the Yanks an early lead. Big Papi‘s dinger won the game.
Nice and sweet, befitting for the lilacs.
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“It is difficult to free fools from the chains they revere” — Voltaire.
OPEN THE WINDOW, AUNT MILLIE.
LOVE TO ALL.
The views expressed in the comment section or opinions published within the text other than those of PLANET VALENTI are not those of PLANET VALENTI or endorsed in any way by PLANET VALENTI; this website reserves the right to remove any comment which violates its Rules of Conduct, and it is not liable for the consequences of any posted comment as provided in Section 230 of the Communications Decency Act and PLANET VALENTI’s terms of service.
Thanks to the Planet. It is truly an honor to be placed before a great story about the Red Sox sweeping the Yankees.
I didn’t realize history was made at Friday’s game.
Glad I was there.
Barry
Why do Conservatives talk about market forces whens it comes to the best price for labor but when it comes to CEO pay its a good ole boy network.
Voltaire is correct. If we are on a golf course with someone who is a CEO and he dies, we have legal inside information. I can show that you should buy his stock not sell it which means that most CEOs are overcompensated. We need more shareholder rights, and stronger governance to reduce this “agency cost” . An even better solution is hostile takeovers where the old management is just fired.
Please ask Dr. Charles Trczinka to write an economic analysis of Pittsfield politics.
Here is my analysis of Pittsfield politics:
In Pittsfield, the only economic growth is in the underclass. Year after year, welfare caseloads, social services programs, and crime increase in Pittsfield.
In Pittsfield, thousands of people have moved away. One of the major causes of Pittsfield’s population loss is the loss of thousands of jobs. Once a full time, living wage job is lost, it ain’t coming back, Jack (Welch).
Pittsfield politics is not a democracy. Not even close! Pittsfield politics is ran by an insider’s network of Good Old Boys. If you are not on the inside of Pittsfield’s corrupt one political party system, you do not have a real voice in Pittsfield politics.
The only way you can get a decent job in Pittsfield is to be part of the G.O.B. If you don’t kiss their dirty behinds, then you will lose your job and be blacklisted from every finding work in Pittsfield. In truth, Pittsfield politics uses economic fear to keep the people in line.
Pittsfield politics’ municipal finances are at a breaking point. Within the next 5 years, Pittsfield politics will go fiscally insolvent and may risk another round of state government receivership since the corrupt days of the Doyle debacle.
Pittsfield politics will add further stress to its financial crisis by financing the new Taconic High School project, which will add millions of dollars to its burdensome budgets.
Even wealthy communities with high median incomes could not run their municipal finances like Pittsfield politics!
Within the next 2 months, the lovely Linda Tyer will produce a fiscal year 2017 municipal budget with tax and spending increases. This will be the first indicator of her leadership priorities as Mayor of Pittsfield.
– Jonathan Melle
Jonathan- You have summed up the situation here quite well. I moved away some time ago because I could not afford to live here with rising property taxes. I don’t know if Pittsfield can ever recover. Good Ole boy-yes- always has been and unfortunately, always will be. They live good while all the rest of us go deeper in the hole.
Interesting article. Enjoyed it but I’m with DV when he calls for free trade. Period. No tarriffs which are actually bad politics. I can’t vote for Trump but Hilary is just as bad. What should be done? Not too confident about this country’s future.
I’m not too confident about the country’s future either. I would like to be, but if Hillary and Donald are the best we can come up with after all of this long campaign, we are definitely in trouble. Both have more ego than they do common sense. Trump is too much of a nervous hyperactive person and Hillary is just not to be trusted. I like Cruz. He seems like a nice intelligent guy, but when you see the type of people voting for Hillary and Trump you can see why someone like Cruz can’t win in this country.
The country seems to like loud mouthed candidates who talk a good game, but don’t end up doing what is good for the country. To me loud angry people are not who I want running this country. I want someone who follows the constitution and who isn’t all about their ego. Ego driven people are only looking out for themselves in my opinion.
Ted Cruz is NOT a nice or intelligent guy. He too is a walking, talking ego, completely dogma driven, who is roundly despised by every single member of the body in which he serves. Even his own kid wretches at thought of his touch. He may be the creepiest presidential candidate ever.
I agree with that last sentence, MR. G
I disagree. I think Trump is creepy.
Being despised by every member of the body he works for is a good thing. Nobody likes our current government.
But it’s not Pat, even though they are “opponents”, the way the system is set up they need to get along and be able to build some sort of consensus to get anything done. Just saying “we won’t work with them unless they capitulate completely” isn’t good for anyone and nothing gets accomplished.
What is Dr. Trczink opinion on Soylent Green futures?
Things like the NAFTA has really hurt our country. As far as tarrifs go, they can’t make anything worse than what is going on now. Maybe American manufacturers will be able to compete for American business. Either way, whats going on now sure is not working for the US.
How is Indiana expanding income now? The Dr. Says Indiana income is low? Indiana or it’s worker? I’ll go with the Wharton grad instead of the Kelly Alumn on this one. I’m a little bias though.