Daniel McCarthy is right about one thing—social science is not science. This is mostly because one cannot do experiments…well, the Nazis could, maybe Stalin, but not ethical researchers. Sociology and economics depend on statistical analysis (“lies, damned lies, and statistics”) and surveys (subject to statistical analysis). What sociologists and economists say are informed opinions only.
Everything else he wrote is misleading. The tariffs do increase federal revenue. They are a tax on American consumers—the most regressive possible tax. According to McCarthy, we have paid $27 billion in tax already. Foreign countries did not pay those tariffs. We did. A local coffee shop pays $1,000 in tariff tax for every 1,000 pounds of coffee beans they buy. At some point, a cup of coffee will cost us more. The bean-growing countries paid nothing.
Economists may have informed opinions, but at least they are informed, unlike McCarthy. Trump claims exporters will cut their prices so they will still be competitive with domestically produced products. What a joke. There is no domestically produced coffee (excepting Kona from Hawaii, whose total productions would not waken Americans for a single day). Bananas, winter vegetables, winter beef, tea, and many other foodstuffs must be imported. Foreign farmers and ranchers are in an impossible position to cut export prices.
McCarthy writes the tariffs will encourage American companies to build more factories. The problem with that is that factories today are fabulously expensive to build, and the will to build them depends on stability. Manufacturers need to know that the protection that makes building a factory profitable for years into the future will still be in place. Our tariffs have bounced like a beachball for months. What CEO or board of directors is going to sign off on a multi-million dollar investment with that volatility in their faces?
The Federal Reserve just left interest rates alone, because they know that tariff-driven inflation is inevitable. This is the tax on us.
He also writes that our stores will see “more stock on the shelves.” As of last Friday, every U.S. port has seen “steep drops” in freight arrivals. So, where is that stock coming from?
The U.S. needs more revenue. Our president, and thus Congress, is unwilling to raise taxes, so they have decided to tax the poor, and what remains of the middle class, with tariffs to make up the shortfall.
The data McCarthy gave us may be accurate, but his rosy picture of the outcomes of Trump’s egocentric tariff policy (huge tariff on Brazil for prosecuting Bolsonaro?) is completely wrong.
Bill Gillmore
Columbus
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