Paul Krugman explains that the economic harms of Donald Trump’s impulsive, reckless tariffs are secondary to crony corruption and loss of national credibility.
First, Trump’s tariffs are shot through with exemptions based on no clear legal or economic standard:
…it opens the door for old-fashioned corruption. As I said, most of the tariffs are on inputs into business — and some businesses are getting special treatment. Thus, there are now substantial tariffs on imported steel, but some steel users — including the U.S. subsidiary of a sanctioned Russian company — were granted the right to import steel tariff-free. (The Russian subsidiary’s exemption was reversed after it became public knowledge, with officials claiming that it was a “clerical error.”)
So what are the criteria for these exemptions? Nobody knows, but there is every reason to believe that political favoritism is running wild [Paul Krugman, “Making Tariffs Corrupt Again,” New York Times, 2018.09.20].
Don’t think the corruption charge is just liberal Krugman claptrap. The conservative American Spectator said in March, at the beginning of Trump’s trade war, that exemptions erode the free market with cronyism:
The Commerce Department has stated that it will decide on exemptions on a company-by-company basis, rather than based on the types of steel or aluminum being imported…. The department anticipates 4,500 exemption requests — and it’s difficult to imagine that small businesses without the resources to lobby, or possibly even prepare an exemption request in the first place, will be the ones that receive exemptions.
In the end, the process of determining who receives an exemption from Trump’s tariffs will consist of unaccountable bureaucrats deciding to exempt those with the political influence and access to get their arguments in front of decision-makers’ faces, with the losers being those businesses outside this circle. An economy that rewards a company’s access over the value of its products is not truly a market economy, but one that’s making products more expensive while providing less value to consumers [Andrew Wilford, “Trade Exclusions Are Crony Capitalism Within Crony Capitalism,” American Spectator, 2018.03.28].
For more conservative criticism of tariff cronyism, see Reason, National Review, the Orange County Register, and the Institute for Policy Innovation.
On top of making Washington swampier (National Review gave me that line), Trump has ripped up eighty years of the United States serving as the model of fair, rational, and reliable trade policy:
Beyond that, America has thrown away its negotiating credibility. In the past, countries signing trade agreements with the United States believed that a deal was a deal. Now they know that whatever documents the U.S. may sign supposedly guaranteeing access to its market, the president will still feel free to block their exports, on specious grounds, whenever he feels like it [Krugman, 2018.09.20].
Trump represents the worst of Al Novstrup’s crony “relationship” politics and the destruction of real international relationships. Tariffs and isolationism didn’t lead to economic prosperity in the 1920s and 1930s, and they won’t lead us to growth now. The Trump tariffs will only lead to corruption and a loss of global trust in America.
Great article from Krugman. Now we see this coming in from China. China has directly purchased missiles and war planes from Russia in violation of the sanctions. Interesting as to how trade wars can actually be kinda dangerous, but, profits…always profits. trump opened the door when he penalized Canada as a national security threat, China is saying the same with this purchase from Russia. National security is a big deal that should not have been taken so stupidly.
“China has protested over the US’ “unreasonable” decision to slap punitive sanctions on a Chinese military unit for buying Russian fighter jets and surface-to-air missile equipment.
“China expressed strong indignation towards the unreasonable move by the United States, and has made solemn representation,” foreign ministry spokesman Geng Shuang said on Friday.
“The US has seriously violated the basic norms of international relations and disturbed the relationship between China and the US. We strongly call on the US to remedy the mistake and cancel the sanctions. Otherwise, the US has to bear the consequences.””
Walmart has rung the alarm bell:
“(Reuters) – Walmart Inc (WMT.N) said that it may hike prices of products if the Trump administration imposes a tariff on Chinese imports, according to a letter the company wrote to U.S. Trade Representative Robert Lighthizer two weeks ago and seen by Reuters on Thursday.”
trump and his enabling republicans, are showing how a corrupted group can take over a country and decimate it. Happy first day of Fall!
Trump is an ongoing crime in progress. Taking bribes and favors from companies and allowing those companies to ignore tariffs is illegal.
~ Let’s play out the China crisis. China has run out of American goods to tax imported into China. Next, China mandates the removal of all factories with American owners. Next, China calls in the $1.3Trillion dollar debt USA owes China. When Trump refuses to pay the debt nuclear war ensues. Deaths of millions to appease the super-ego of one fool who cheated to become President.
~ What can we do? Vote in Democrats from state legislatures to Governors to USA Congress and take back the third branch of government. Therein lies the “power of the people” in America.
Yes, of course, the solution is to vote in more Democrats….
Hahahahahahahahahahahahaha
Hahahahahahahahahahahahaahahahahah
ahahahahahahahahahahahahahahahahahahaaaaa!!!!!!
People laugh when they’re nervous and scared. November is coming, Hill. It’s all down for you. (pun intended) *mic drop
Sleep well tonight Mr. Hill, knowing that your tax dollars are killing the innocent indiscriminately and all for corruption and greed…and Wall Street.
“”SECRETARY OF STATE Mike Pompeo faced internal opposition to U.S. support for the war in Yemen from State Department staff, according to a recent report. The staffers had become concerned by the rising civilian death toll in the war being carried out by Persian Gulf monarchies, Saudi Arabia and the United Arab Emirates — not only owing to bombings of densely populated areas, but also a humanitarian crisis exacerbated by the fighting, with up to 8.4 million people at risk of starvation.
Those concerns, however, were overruled after Pompeo discussed the matter with the State Department’s legislative affairs team. The legislative affairs staff, according to the Wall Street Journal, argued that restricting U.S. support would endanger billions of dollars in future weapons sales, including a massive sale of precision-guided munitions between Raytheon, a U.S. weapons manufacturer, and Saudi Arabia and the UAE.
That staff — the legislative affairs team at the State Department — is led by a former Raytheon lobbyist.”
Yes sir, elect more Democrats would be the solution to the sardonic laugh. We need a judge to go to Washington, vote for Tim Bjorkman.
Krugman was prescient before the great recession. This article is astounding. https://www.foreignaffairs.com/articles/2018-09-13/financial-crisis-still-empowering-far-right-populists?cid=int-lea&pgtype=hpg
Just forJason: Dailykos- Moe White
September 19 · 03:31:44 PM
The GOP is a fascist party. Anyone who is a republican by definition is fascist. Do not expect fascists to support democracy or democratic principles. Fascists believe in only one thing: GREED [Get Rich Eviscerating Everything Democratic]!
Such people, as fascists, are not reliable or trustworthy and cannot be counted on to support democracy or democratic principles such as the Rule of Law.
No matter how glib, or sophisticated they appear to be, no matter how much they proclaim their fidelity to democracy, they are LIARS. They are utter hypocrites who proclaim a belief in democracy while they work diligently and relentlessly to undermine democracy!
I will find the Krugman quote.
Jason, what satisfaction do you get from electing Republicans who give you higher taxes, cronyism, and weaken US influence in global affairs? What good is done by leaving those Republicans in power to do more such damage instead of electing Democrats in 2018 who will check those harms?
Please don’t answer with slogans. Answer with concrete, demonstrable impacts.
https://thehill.com/business-a-lobbying/407904-contractors-trump-tariffs-causing-rise-in-rebuilding-costs-after
Wood costs 30% moar thanks to Drumpf’s tariffs on Canadian softwood. Other building costs have gone up as well.
Life is offering modern day Americans a PhD in Fascism. I wish the education opportunity wasn’t so damn expensive for everyone.
They’ve made liberals into their mortal enemy, blamed them for all of their problems, claimed they’re trying to destroy America, and held double standards to the same degree as small minded racism.
These primitive tribal people are ‘left behind’ isolationists. And by ‘left behind’ I mean in sort of a biblical sense – like ‘sinners’ who reject the ways of human goodness and progress, who have chosen to separate themselves from God.
Society didn’t leave them behind; they chose to stay behind, and it’s their fault, not their country’s.
To be clear, the ‘left behind’ isolationists are just brainless, mindless tools for the business class fascist party to rain down its destruction and vacuum up the spoils.
“Trump tariffs will only lead to corruption and a loss of global trust in America.”
Yeah. It’s happening and the only way I can see to save our nation is elect all the Democrats possible.
“Society didn’t leave them behind; they chose to stay behind, and it’s their fault, not their country’s.”
This is absolutely true Adam. The media likes to portray Greedy Old Bastard’s devoted base as misunderstood victims. Not so. They have made a choice and are not victims. Some indeed, are lower on the IQ scale, but the large majority are not. They are allowing themselves to be led by fear and choosing ignorance to maintain their positions.
We can’t wait for GOB’s tribe to catch up. We must move now, before our wonderful country is lost to us. Not only do we need our democracy back, the world does.
So what if China and Venezuela are making trade deals…right?? But…trump still has his 37 trademarks for him and his little girl, how sweet. In the meantime, what about some kind of trade deals with our farmers? How does all that work anyway NOem? What is your purpose in Washington, dialing for dollars for your failures?
“A Chinese hospital ship has docked in Venezuela, where for the next week it will provide free health care to local patients.
Venezuela’s Defence Minister Vladimir Padrino López, went to the port of La Guaira to welcome the Chinese crew.
He said that the Peace Ark’s visit was agreed by President Nicolás Maduro during a visit to Beijing last week.
Venezuela agreed at the time to increase its exports of oil to China, which is one of its main creditors.
Venezuela’s economic crisis has led to severe shortages of food and medicines and the collapse of public services.” https://www.bbc.com/news/world-latin-america-45616736
So, to be clear, the trump administration meets to do a coup and civil war in our southern hemisphere against Venezuela while China sends a hospital ship to treat the locals. What could be more of a dysfunction on our part than that? China is interested in trade and we are interested in yet another war. Have you had enough yet?
There is an article in today’s Star Tribune newspaper listing more businesses that are applying for exceptions to Lying Louse’s stupid tariffs because there are no US sources for the products they need. https://goo.gl/L9jfmF
There is another article that lists the Fortune 500 companies that are suffering bearish misfortunes in this bull market due to the same economy-damaging, ignorant and tantrum-induced tariffs. The businesses include Polaris Industries and General Mills in Minnesota. It is just a few lines in the print edition and I’m unable to find it online.
Who is “Lying Louse,” Ms. Geelsdottir? When you just call people names it is hard for old people with feeble minds to make sense of your rants and reflects poorly on Mr. H’s blog. Do you refer to the despicable Mr. Trump, who is our President, whether you or I approve or not?
I have been tracking the name-calling by in-state and out-of-state, and find that 92% of the name calling on Mr. H’s blog comes from out-of-state bloggers. Much like the $$ on the heinous and sloppily written IM 22 and Amendment “W”rong does.
Grud~ That’s why our lives are so much more peaceful here in South Dakota rather than the heathen filled outer lands. 92% I think is really close.
I’ve been following things for quite a while, and those last two comments are nothing short of senile.
Grudzilla, my survey says 110% of the flat out lies and BS come from OldScuppersucker, Jason and even Grudzilla its own self. All in staters unless they are lying about that.
By two grumpy old men…go fishing you two and get a room.
It might be time to get a room, in an old folks home.
Adam, I’m 60. I’m better educated than you, hold more degrees, have more money, traveled more and am smarter. Beyond that I’ll bet I can only out run you and out lift you. I can help you reach all your goals if you can listen. It’s an offer.
O.S. will make all of our wildest dreams come true.
Seriously, all kinds of degenerative brain diseases can happen around60 years old. You should get checked out.
Russian, in my experience, whenever one brags about education, they lack it. In my experience, whenever anyone brags about how much money they have, they are in hock up to their eyebrows. In my experience, anyone who brags about travel has probably only left the state maybe once or twice to visit Uzbekistan probably. At 60, you’re probably lucky to even be able to make a stream urinating.
OldStemwinder ain’t half as smart as he pretends he is. He is like his orange buddy, Drumpf and doesn’t realize just how stoopid he is and foolish he sounds
Oh yes indeed, I do call our president names, in addition to other public figures. Note that I do not call other commenters on DFP any names other than the ones they have chosen for themselves.
It is interesting that the ones who seem to be upset by me calling public figures names, hide their own identities.
It is also interesting that those who complain about the fact that commenters who are not current SD residents share opinions about SD issues are those same nameless commenters who “claim” to be SD residents but since they hide their identities we can’t be certain. Also they claim to be men, but feel they have a right to insist that a panel of old white GOP males has a right to control a woman’s body and deny her full, adult, human autonomy and that we ought to be stuck with hearing their opinions on the topic.
Interesting, indeed.
It upsets me, Ms. Geelsdottir, unless you are not her and are just “Debbo”, when anybody calls names. As a South Dakotan, it is particularly goat-getting that Mr. H runs a blog for out-of-staters to let them call many South Dakotans names.
It it just not South Dakotan. It’s like “Minnesota Mean.”
All this out-of-state name calling. It makes an old man’s head throb.
In other words, Mr. H has gotten one of my goats with all the out-of-state name-calling he promotes. I wonder if that extends to Mr. Sutton, who will have bleed over from South Dakotans who actually can vote here.
Let the name calling continue, let it bleed onto the voting in the Aberdeenian district and the elections for all. grudznick has deemed it shall continue.
It upsets me, Grudz, when people hide behind fake names. It’s not just unMinnesotan. It’s “South Dakota Gutless.” You’re creating a weak reputation for the citizens of that fine state.
Oh Grudz, surely you’re not saying South Dakotans never call names?
Call me Nicholas, Ms. Geelsdottir. You did when we met.
Nicholas _________? Your REAL name.
Ms. Debbo, regarding Mr. grudznick and his whine, sometimes you have to understand that old geezers only want to tell the youngsters (no matter where geographically located) to get off the damn lawn, you young whippersnappers.
I always thought “Debbo” was the name of a slim tall woman.
“Adam, I’m 60. I’m better educated than you, hold more degrees, have more money, traveled more and am smarter. Beyond that I’ll bet I can only out run you and out lift you. I can help you reach all your goals if you can listen. It’s an offer.
Uh huh, because everything that people write on an Internet blog is … true.
It’s ok ricky. You live your life. I’ll live mine.
It occurs to grudznick that South Dakota should not be worried about “libbies vs. conservatives with common sense”, South Dakota should concern itself with In-State vs. Out-of-State, voter registration be damned.
I expect there to be signs on this, soon, in the Aberdeenite districts first.
OS, I’m 5′ 10″, medium build, very dark brown/gray hair, 65 yr old.
You? And why do you hide behind a pseudonym? Some folks have a good reason, and that’s okay. Others do it because they’re embarrassed or ashamed of what they write, wouldn’t want their neighbors/family to know. What about you?
When conservatives whine about name calling, it’s only because someone else out did them at it.
They try so hard to look hard and smart while they fling all kinds of sh!t at the wall, but when you show them what their own personality defects look like, they shrivel up like a johnson in a swimming pool.
When they whine about name calling, they are implementing a double standard in politics – much like racism. Conservatives have now forfeited all rights to whining about name calling in politics.
Mr. H’s blog does show Mr. Adam to be correct in how the name-calling will be ramped up, everywhere and on this blogging place. It will be very sad for grudznick and many of you, too.
You can’t fake that kind of stupid.
If the pseudonymed Grudz or anyone else calls any of the Democratic candidates or office holders names they may certainly do so. You see, I can take it as well as dish it out.
Grudz, “common sense” is just another word that Republicans keep misusing.
I’m afraid I missed the part where anyone shows me that tariffs constitute common sense or empirically proven effective economic policy.
Nobel prize-winning economist and New York Times columnist Paul Krugman called the election results “the mother of all adverse effects” on the still-fragile U.S. 2016 economy. “What it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work”. In a post-election Wednesday Tweet, Krugman walked back his predictions to an extent, saying the fallout might not be worldwide. http://time.com/money/4563085/donald-trump-global-recession-fears/
11.9.16
Krugman wasn’t the only economist expressing concern that post-election Wednesday. Nordea Chief Economist Helge Pedersen predicted that Trump’s anti-globalization stance and protectionist trade policies could result in a trade war that would trigger a recession, according to Bloomberg. HSBC chief US economist Kevin Logan wrote that Trump’s economic policies “would likely put the economy into a recession after a year or two,” Business Insider said.
grudz, you’ve been calling names for years here. go ahead, defend your president. he is an idiot. he models for generations an immature leader. real healthy. do you really think SD is that far behind neighboring ag states?
Losses and farm consolidation accelerated by Mr. Trump’s tariffs will make the devastating 1980s farm crisis look like a bump in the road as it drives a significant rural-to-city migration. *** Drive any highway or road in the state (Iowa) and you will see that about every half-mile, the ditches are full of beautiful orange lilies.
Behind the lilies are hundred-acre fields, behind the fields, you will invariably find nails, broken crockery and remnants of life where a farmhouse once stood. The lilies are all that’s left of the dreams of the optimistic family that planted the lilies and made a farm and a life on the land generations ago, only to see it lost.
The destruction of a way of life cuts as deep now as it did back then, especially when it comes from this president. The only thing he knows about food is that it always comes served to him on a silver, or maybe gold, platter. https://www.nytimes.com/2018/07/26/opinion/trump-tariffs-trade-war-rural-america.html
Mr. Perdue, and likely President Trump, know a $12 billion bail-out won’t make a difference, even in the short term. Farmers and others in the industry know the offer is meaningless. But most rural Republicans aren’t farmers, and many are Fox News devotees.
The larger farm operations and the larger agribusinesses will be hovering, looking for any weakness, and ready to purchase smaller farms. And rest assured, when the Trump payments are made to farmers, the larger operations will be the ones that gobble them up.
By Robert Leonard