Tag: EU

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free trade & free markets national politics & policies responsibility too much government

Trump’s Biggest Secret?

golden crutches, farm subsidies, tariff, trade, free, Trump, EU

“This trade war is cutting the legs out from under farmers,” says Senator Ben Sasse (R-Neb.), “and White House’s ‘plan’ is to spend $12 billion on gold crutches.”

Referring to Donald Trump’s tariff brinksmanship with China, Sasse is decrying Trump’s request to Congress for compensatory farm subsidies. Sasse insists that “America’s farmers don’t want to be paid to lose” — but regardless of what farmers want, we should want free trade.

Tariffs are taxes. Consumers ultimately pay for them all.

Trump’s requested “crutches” is just another example of a bad government program leading to another, “compensatory” bad government program.

Old story. Too familiar.

The senator is right to be alarmed by the Trump “administration’s tariffs and bailouts,” for the president is playing a most dangerous game. Trade wars are not mutually beneficial. Trade is.  

Of course, if the ultimate result is an end to all trade barriers — as Trump himself demanded regarding the EU — then . . . could it be worth it?

One thing’s for certain: the history of protectionist brinksmanship is not pretty. Sasse himself predicts that Trump’s tariff hikes “aren’t going to make America great again, they’re just going to make it 1929 again.”

Sasse is referring to the passing of the Smoot-Hawley Tariff Act of 1929, which led not only to a spooked Wall Street, but to bank failures and retaliatory protectionism from other countries. 

And a worldwide depression. And world war.

But is Trump really a secret free trader,* using tariffs in a game of chicken with trading partners?

This just in, from The Guardian: “Trump and EU officials agree to work toward ‘zero tariff’ deal.”

Stay tuned.

This is Common Sense. I’m Paul Jacob.

 

* We could be forgiven for thinking him an old-fashioned protectionist, considering his repeated insistence that “Tariffs are the greatest!” But with Trump, maybe we should never take him literally.

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Photo by Carlos Martinez

 

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Accountability folly general freedom ideological culture media and media people moral hazard responsibility

Too Big for Breaches

EU, migrant, crisis, collapse, immigration, refuge, welfare, socialism, borders, freedom

“Any reporter who has covered Europe in the last decade has written a dozen articles or more,” The New York Times informs us, “about how one crisis or another has exposed the fundamental unsustainability of the European Union.”

I hadn’t noticed. Until recently, haven’t reporters and commentators been downplaying Europe’s looming crisis? But they cannot pretend “far right” separatist, decentralist and nationalist movements are marginal any longer, not after strong showings for Geert Wilders in The Netherlands and Marine Le Pen in France, and the Brexit vote.

Now everybody seems to be panicking.

Even the Times is half-predicting an end to what it calls the “European Experiment.”

The Times identifies the tension as arising from “calls for keeping out secondary migrants and demands to keep internal European borders open. It’s a version of the contradiction within the European Union itself: between an open union and a collection of sovereign states.”

Beneath all the brouhaha about freedom of movement across breached borders lies the real contradiction: between massive welfare states on the one hand and, on the other, freedom of movement, speech and all the rest.*

When governments offer freebies, they entice people into un-productive or at least sub-productive lifestyles. Which is not sustainable, especially when extensive. How many productive people must support how many unproductive people?

Then throw those domestic programs open to millions of migrants who lack even rudimentary language and First World skills? That’s how states subsidize their societies’ destruction.

Europe’s governments are way too big for their border breaches.

If you want traditional freedoms, you have to pare down government.

This is Common Sense. I’m Paul Jacob.

 

*Between social democracy (socialism lite) and the old liberal order.

 

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folly free trade & free markets general freedom moral hazard too much government

When Parasites Collide

Apple, EU, tax, Europe, Ireland, illustr

There are times I wish I were a tax accountant.

You know, just so I could better understand the news.

The European Commission has handed Apple, Inc., a $14.5 billion tax bill.

Owed to Ireland.

Apple, the tax commissioners said, had paid too little in taxes to Ireland, amounting to a mere 1 percent of the company’s European profits.

The Emerald Isle’s normal corporate tax rate is 12.5 percent.

On first read, this sounded like a tale of crony capitalism, with the EU’s tax authorities riding in, heroically, holding aloft the gonfalon of fair play, on the side of truth, justice, and an even playing field.

Well, the story gets complicated. The U.S. Treasury has protested the ruling as unfair. And Senator Chuck Schumer called it a “cheap money grab.”

The Wall Street Journal opinion page comes out on Apple’s side, too, but gives some specifics. Apple paid all the taxes it owed under Irish and EU law, but the ruling wasn’t about law, it was, we are told, about politics.

I can believe that.

So, as near as I can make out, what we have here are three sets of governmental interests, each intent on sucking the most out of a rich, innovative, and wildly successful multinational corporation.

It’s hard not to side with the target, Apple, and think of the other groups as mere parasites.

After all, my non-accountant’s spidey sense suspects that Schumer objects because the U.S. government isn’t going to get any of that $13 billion.

Preferring an “expensive money grab,” I suppose.

This is Common Sense. I’m Paul Jacob.  

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free trade & free markets general freedom too much government

Hysteria, Assassination, and Big Government

Brexit, EU, European Union, independence, democracy, illustration

The biggest political story of the month? Brexit.

The people of Great Britain will vote, this week, whether to remain in, or exit, the European Union. (Britain+exit=“Brexit,” you see.)

Establishment forces in Britain have engaged in hysterical, hyperbolic overkill, warning of grave disaster were Britain to leave the union. America’s President Barack Obama contributed to this, recently, when he warned that an independent Britain might find itself placed “at the back of the queue” in trade talks.

Tragically, things got more troubling last week when anti-Brexit, pro-union campaigner Jo Cox, a Member of Parliament and prominent Labour Party activist, was brutally slain last week in front of her local library. The man had just left a mental health facility, after requesting help.

At first, major media reported that the killer had shouted “Britain First,” an old patriotic motto as well as the name of a pro-Brexit political party, while shooting and stabbing her. Of the several eyewitnesses to have allegedly testified to this murderous shout, only one is sticking to the story . . . a member of the British Nationalist Party, which is antagonistic to Britain First. Other eyewitnesses deny the story.

Next, both sides promised to cease campaigning, out of good taste. Still, polls fluctuated, while remaining close.

Much of the furor has risen over immigration policy, especially fears about EU laxity towards Muslim refugees.

But the bedrock issue is Big Government. The EU is not effectively controlled by citizens; indeed, membership representation is mostly show, a mockery of republican government.

That is why, if I were British, I’d vote to Brexit.

This is Common Sense. I’m Paul Jacob.

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