Fair Trade

        I posted my first blog on Common Sense, Business & Politics on January 18, 2012.  In that blog I listed my seven greatest fears for this country.  One of the seven was our deficit trade balance.  I’m sure many of my readers did not consider our trade deficit that big a problem at that time.  I did and still do. 

        I am a proponent of free trade, but only if it is fair trade.  America’s trade policies have not been in the best interests of the country for decades.

        I am not an economist, but I do have some business experience and eighteen collage hours in economics.  I always thought economics was common sense.  If you have more money going out than coming in, you have a problem.

        Our country’s negative trade policies date back to post WWII.  We intentionally allowed bad trade policies in order to help rebuild war-torn countries.  It may have been a good policy then, but that time has passed.

        We now have a trade problem and I am happy President Trump is keeping another campaign promise by addressing that problem.  We have not had a positive trade balance since 1975.  Our negative trade balance is hurting American workers and the economy. 

        The new tariffs will help rebuild our steel and aluminum industries.  These industries are in trouble, and we can’t afford to have them disappear.  Our Military and national security are dependent on strong domestic steel and aluminum industries.  Our industrial strength was one reason we were victorious in WWII.

        The new tariffs on steel and aluminum may hurt some business in the short-run, but it will be good in the long run.  Harly-Davidson motorcycles are built here in Wisconsin.  They use steel and aluminum and those costs may go up in the short-run, but many countries importing Harly-Davidson bikes now charge a 30% to 100% tariff.  That will change in future negotiations because of the new tariffs. 

        There may be a short trade war, but it will be short lived and American will be stronger in the end.  I understand some politicians are against the tariffs.  These are the ones controlled by political donations of special interest groups.  They need to represent American and not special interests.  Thank God, President Trump cannot be bought and is not controlled by the political party elites.

        Some globalist economists don’t agree with President Trump because he puts America first.  I agree with Trump.  I do not support the globalist idea of worldwide wealth redistribution. 

        Mexico and Canada have been exempted from the steel and aluminum tariffs, and this will be a major bargaining point in renegotiating the North America Free Trade Agreement.  NAFTA goes back to Reagan’s presidency.  I have disagreed with every president since on NAFTA.  I do not have a problem with free trade with Mexico and Canada, but it has to be fair.  That has not been the case.  The United States has been getting the short end of the deal.  It is time for a change. 

       

God bless President Trump and guide him to make America great again.

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