Bullshit

 Well, it should have surprised no one, the tariffs are here. The rationales given make little or no sense. Let’s start with drug trafficking. This one makes some sense regarding Mexico and China. There seems to be little doubt that drugs are moved from China to Mexico and then into the United States. The case for Canada makes less sense. Less than 1% of illegal drugs enters the United States from Canada. Will tariffs change the flow of drugs? Seems the more effective approach might be a few efforts working together. First, as currently being started, additional troops and border patrol agents. Second, a comprehensive approach to reducing the demand for illegal drugs in the United States. Drug treatment as an alternative to incarceration. 

The second rationale given for the tariffs is that somehow these countries stole our jobs. There are a variety of reasons jobs and industries moved out of the United States. Corporations were looking for cheaper labor and less regulation. There is no question Mexico and China provided both. Cheaper labor and less regulation meant larger profits for multinational corporations. Those corporations are not in business to do anything except make profits for their shareholders. Will tariffs change the equation? Maybe. 

Contrary to what the current administration is saying tariffs are not paid by foreign countries. They are paid by the importers. It seems unlikely to me that corporations who are profit driven and accountable to their shareholders are going to bear the expense of these tariffs. The cost will be passed on to American consumers. Increased prices, higher inflation. The Federal Reserve is consistent in their policies. They will raise interest rates. The cost of buying homes and cars goes up. Cars and car parts come from all over the world. Those parts just got 25% more expensive. Lumber from Canada will cost more. Interest on car loans and home mortgages will go up. 

So I have a couple suggestions. First, fasten your safety belts the ride is going to get bumpy. Second, when you go shopping look for items that are made in the United States. We can’t have products made here if we don’t buy them. Finally for those folks who are riding on the Good Ship Lollipop and think this President is a genius- good luck with that.