Friday, January 20, 2017

Donald Trump Begins Inauguration Speech With a Rant Against Free Trade

Donald Trump is now President of the United States.

In a short 18-minute inauguration speech, Trump spent a remarkable amount of time attacking free trade.

His attack, displaying a complete ignorance of comparative advantage, was fierce:
We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs. Protection will lead to great prosperity and strength...

America will start winning again, winning like never before.

We will bring back our jobs. We will bring back our borders. We will bring back our wealth...

We will follow two simple rules: Buy American and Hire American.
What idiocy.

 -RW

11 comments:

  1. We will follow two simple rules: Buy American and Hire American.

    Or else. The neomercantilists have convinced Americans that forcing lower-paid workers to subsidize higher-paid (usually union) workers can make everyone better off.

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  2. ─ We will bring back our jobs. ─

    Ha ha ha! They aren't "our" jobs, you weasel! Jobs belong to employers and stockholders. It's THEIR MONEY. And what do you think you're going to achieve? Bring back the buggy whip industries? Please.

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  3. You don't understand the difference between competitive advantage and regulatory advantage, Wenzel.

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    Replies
    1. Yeah matt sooooooo true Robert doesnt the oligarchy for the trees.

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    2. Re: matt@socialismyeah dot org

      --- You don't understand the difference between competitive advantage and regulatory advantage, Wenzel. ---

      You don't seem to understand the difference between trade between two parties and 'f...k you it's none of your business', Matt.

      The economy itself is not about providing an income to the "American Worker(TM)" but about trade. The more trades you can make, the more chances for you to improve your lot. Comparative advantage has NOTHING to do with who has the less regulations but with productivity. Having an advantage of less regulation only means that the INEVITABLE comes to be essier, be it making sneakers or apple slicers in China. This means that even if the regulatory regime was the same in China and the US, entrepreneurs would still choose to make sneakers and apple slicers in China and not the US, sooner or later, which is better for the American consumer, your petty jealousy notwithstanding.

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    3. Torres, you speak like someone who has never competed in the world of making things. What you fail to consider is the costs required to manufacture product in China successfully that do not exist in the USA, Japan, Germany, etc. These costs are significant and without the regulatory advantage would wipe out any labor rate savings that may exist for a wide variety of products. Once you try to manufacture product in China you start to learn what it takes to do so successfully. What the hazards are. These are all things above and beyond what is required domestically.

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    4. Re: Jimmy Joe Meeker,

      --- Torres, you speak like someone who has never competed in the world of making things. ---

      You speak like a person who can only argue by throwing red herrings and irrelevancies.

      --- What you fail to consider is the costs required to manufacture product in China successfully ---

      Looks like there are plenty pf people who sorted that hurdle successfully, assuming you're not B.S.-ing me.


      --- These costs are significant and without the regulatory advantage would wipe out any labor rate savings ---

      I find your reasoning incredibly unconvincing. But even if it were true, you completely MISS the point: It wouldn't MATTER. Comparative Advantage is not the result of labor costs or set-up cost but of opportunity cost. This is what Trumpistas, Matt - the Marxist - and YOU don't seem to understand.

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    5. "You speak like a person who can only argue by throwing red herrings and irrelevancies."

      It's very relevant, because I've done it and you haven't. Therefore you don't understand it.

      "Looks like there are plenty pf people who sorted that hurdle successfully, assuming you're not B.S.-ing me."

      Yes they have, it costs money and time. You still can't read for comprehension, that's the point. It's a _cost_ you do not consider.

      "I find your reasoning incredibly unconvincing. But even if it were true, you completely MISS the point: It wouldn't MATTER. Comparative Advantage is not the result of labor costs or set-up cost but of opportunity cost. This is what Trumpistas, Matt - the Marxist - and YOU don't seem to understand."

      See, here's where you display you've never done it. What I described is entirely opportunity cost. The opportunity cost that comes with people being tied down dealing with the problems that result and working to prevent them. Delays to market. The babysitting, the travel, and much more. To do it right requires an entire staff. Staff that can't be used to create new products but instead fights fires and rear-actions to keep product flowing and quality up.

      It's the regulatory and political burden in the USA that makes dealing with that less of a cost. Elon Musk has the influence to deal with government in the USA, so he manufacturers his product here. He doesn't have to wait for approval like your or I would. He gets tax breaks. We lose our opportunity dealing with government domestically. It's cheaper to just hire more people to deal with the problems overseas. But if the regulatory burdens equal.... No reason to have those people and headaches, just build in the USA.

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  4. Matt,

    I'm trying to follow your argument. Are you implying that, since Chinese businesses might be freer in some respects from certain types of regulation, that therefore it's OK to ban Americans from transacting with them?

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  5. "Our" as in American jobs. And yes, they will come back. Hide and watch!

    ReplyDelete
    Replies
    1. @RadiomanE5,

      --- "Our" as in American jobs. ---

      There's NO such thing as "American" jobs, just like there are no Chinese or Timbuktu jobs. Jobs belong to the employers and stock owners, not to "Americans".

      Delete