Political Pistachio

By Douglas V. Gibbs

 

To understand the tariff war that President Trump has launched, we need to pay attention to the long game.  Since China joined the World Trade Organization (WTO) they have refused to play by any rules, and over the last half-century our trade deficit with China has grown to nearly $300 billion.  In short, we import more from China than we export to them.  We have given them the manufacturing edge, and have become dependent upon products produced by our communist rival on the world stage.  Democrats argue that prices on Chinese goods will go up and that there are no American replacements for those products.  While that may be true in a minority of cases, when faced with that assumption shouldn’t our response be, “why?”  Why don’t we produce those products, or why is it that American manufacturing cannot compete with Chinese products?

 

It comes down to the cost of doing business.  In the United States, thanks to Democratic Party policies which are rooted in Marxist ideological strategies, the cost of doing business in the United States is ridiculously high.  Free Markets are most prosperous when government intrusion is at its smallest.  President Trump is reducing regulations, reducing the tax burden, reducing the cost of energy and transportation, and then with tariffs he is raising the cost of doing business in China when it comes to selling those products to Americans.  Yes, in the beginning certain products will experience a price increase – but the long game says that manufacturing will return to the United States, and during that process the cost of doing business in America will be reduced, ultimately beginning the process of tilting the trade deficit in the opposite direction.  Rather than reacting on the short-term issues, we need to look long-term.  Either keep the prices down today and continue digging a long-term hole, or allow the markets to get a little sticky today and save the future from Chinese oppression and a failing America who no longer produces anything making us dependent upon everyone else.

 

And, we have to ask, is what President Trump doing Constitutional? 

 

Generally, all of his actions have been constitutional in the sense that he is either carrying out executive powers linked to national security, or executing laws on the books.

 

The lawmaking body of our government is Congress.  The President executes the laws of the United States.  The personnel of the agencies and departments are his hired help.  He’s in charge of the executive branch.  The Judiciary was created to apply the law, not interpret the law.  Judicial Review is not in the Constitution.  They are supposed to take cases, and rule on them based on the application of law as it is provided and understood in basic understandable standards.  There is a separation of power.  The three branches are not there to dictate to each other.  They are there to handle their duties regarding the law.

 

We the People and the States are the final arbiters of constitutionality, not the courts, not the President.  The legislature is supposed to be passing laws that are constitutional, but if they are not it is our job to ensure they are, and take action if necessary.

 

Now, we get back to President Trump, if his actions are constitutional, and the tariffs that he has been imposing.

 

In 1974 we saw the establishment of the International Emergency Economic Powers Act.  The law grants to the President by Congress the authority to regulate international commerce after declaring a national emergency.  Yes, I have railed against governmental emergency powers.  It is not a good thing.  Emergencies are not supposed to be an excuse to suspend the Constitution.  There are no asterisks in the Constitution that proclaim that the Constitution is the law of the land unless there’s an emergency.  I get that.  But, I am laying out the tools Trump has, regardless of their legitimacy, and that because Congress has granted him these tools he may use them.  His use of them is not unconstitutional, even though their existence might be.  Article II says that the President shall faithfully execute the laws of the United States.  It does not say he may pick and choose based on if he thinks they are constitutional or not.

 

While the 1974 law, the International Emergency Economic Powers Act, does not specifically mention tariffs, Trump and other Presidents have used it to impose duties on imports from various countries citing national security concerns.  In Section 301 of the Trade Act of 1974 that provision enables a U.S. Trade Representative under the President’s direction to impose tariffs on countries engaging in unfair trade practices.  Then, in Section 232 of the Trade Expansion Act of 1962 the President is given the allowance to adjust imports that threaten National Security.  President Trump used that act to impose tariffs on steel and aluminum.  Congress has historically delegated some of its tariffs authorities to the President.  We’ve seen it a number of times in history.  This is nothing new.  The President is not overstepping his powers in the sense of congressional law.  He is following the law that is on the books.  Once again, it is the job of the President to execute the laws, and his actions need to be in line with the law. 

 

For example, deportation is a power given to the President of the United States regarding people who have entered the country illegally.  Traditionally, we have immigration courts because we want to give the illusion that the illegal aliens got their day in court, but that is not necessary.  Article IV.’s privileges and immunities clause only applies to citizens.  The law says if someone who has entered the country illegally they may be deported, and that is what President Trump is doing.  He’s targeting the worst of the worst first, apprehending, detaining and deporting criminal aliens, and that is fine.  That is his prerogative.  Sometimes illegal aliens who are not criminal aliens are discovered in the process, and since they also broke immigration law, they are being deported as well.  But, the focus has been on gang members, terrorists, and other criminal aliens and aliens who are a threat to our National Security.  These tasks are being accomplished through the President’s agencies – Border Patrol and ICE. 

 

In the case of Mahmoud Khalil who is here on a green card; yeah, but that resident alien card comes with conditions.  If those conditions are violated, then the Secretary of State who works for the President because he is part of the executive branch has the authority to strip that person of their green card and deport them.  And with Mahmoud Khalil, that’s what happened. 

 

The opposition argues he has freedom of speech.  First of all, NO.  He does not as a non-citizen enjoy the same privileges and immunities of a citizen.  Besides, it goes way beyond his political opinion.  Khalil’s conduct is also a problem.  His actions.   The things he has done, and the enemies of America he aligns with.  The President of the United States has the authority to take care and to ensure we are safe in terms of National Security, and Khalil has been determined to be a National Security threat.

 

It’s the President’s move to make.  Time is of the essence, often, when it comes to these cases, and the Founding Fathers did not handcuff the President to approval from the other branches.  If the President had to wait for permission from Congress, or the federal courts, the rapid time element that would be necessary would pass and probably die in committee, or inside some judicial docket. 

 

Same thing with tariffs.  While tariffs are typically required to be established by law, historically the early Congresses of the United States realized that the President in some instances would need to be able to wage war through tariffs and trade no different than as he would need to be with the military as Commander in Chief.  So, through law, they began to give the President the ability to independently handle trade and tariffs without all of the legislative steps during times of necessity in the name of National Security. 

 

Tariffs, however, as the global market gained momentum, became demonized.  Tariffs are not good for global economies.  Tariffs are typically used by a country in a protective manner.  There are general tariffs, and then there are protective tariffs.  General tariffs were typically used for revenue, and have typically been set at a low percentage.  Historically, tariffs have been a key federal revenue tool.  At one point, tariffs made up 95% of federal revenue.  Since the emergence of income tax, and progressive socialistic ideas around globalism, tariffs have been minimized as a tool for American stability in trade and manufacturing.  We have typically charged less than 5% on imports during modern history.  Other countries, however, have been hitting us with much higher tariffs. 

 

When it comes to tariffs the numbers have always leaned against the United States.  It is an extension of progressive taxation – the idea that the more you make, the wealthier you are, you should pay a higher percentage.  That’s a Marxist idea.  Progressive taxation is one of the planks of the Ten Planks of Communism.  That’s what the tariffs situation has been over the last century because this is the way the liberal progressive left thinks.  They won’t say it, but they are all about communism.  So, from a progressive tax rate point of view, tariffs as they have been is exactly what they want. 

 

Taxes were originally at the same rate across the board.  Even in a situation like that the wealthy will pay a little bit more because of basic math.  They will still pay more because they earn more.  If you were to charge 10% across the board, the government’s take from $30,000 would be lower than what they would receive from someone making $300,000 or $3,000,000.  Progressive taxation, however, says the more you make the higher the percentage goes.  That’s what they are doing with the tariffs.  It’s not that they don’t understand economics, or they are pushing specifically for anti-American policies.  They are communists, and in communism the more you make the more you pay in the hopes of pulling down the wealthy to the level of the peasants.  They are freaking out of President Trump’s tariff policies because Trump is operating against communist ideals.  Communism calls for progressive tax rates.  The United States is the most prosperous of the countries of the world, so, they have to pay the highest tax rate when it comes to trade.  So, the tariffs against the United States are much higher and the United States in return charges a much smaller tariff. 

 

President Trump understands what the game is all about, and he has looked them in the eye and said, “NO!  That’s not a free market – that’s communism.  Why are we paying the higher tariffs?”

 

The reality is, the rest of the world needs our products more than we need theirs.  We have a better capability to produce a superior product, yet we have been sending our manufacturing overseas and we have been becoming dependent upon imports – literally falling into the plans of the globalist communists.  We need to be manufacturers.  We need to protect our manufacturing.  We need to protect America’s economy, not just give it away through some communist scheme so that everybody is equally miserable.  Therefore, he’s been jacking up the tariffs.

 

We’ve been hearing from the Democrats in particular through their freak-out how it is going to destroy the prices, destroy trade, destroy the economy, destroy the average person’s ability to live in an economy racked with inflation – they’re coming from a communist angle. 

 

President Trump put out the word that we will not play the communism game anymore, and he raised the tariffs, but if you want to talk relief regarding the tariffs may be on the horizon.  Countries have come to him in droves.  Okay, they have basically been saying, we’ll change our habits with you.  We’ll work with you.  They wish to have a positive diplomatic relationship with us because they need us more than we need them.  President Trump is using our strength to level the playing field and move us away from a communist way of doing things.  Over 70 countries have called for working with us.  They are begging to work with us.  So, Trump said, you eliminate yours, we’ll eliminate ours.  Work with me, and I will work with you.  Trump ended up suspending pretty much all of the tariffs except the ones against China.

 

Trump has eliminated the trade barriers by standing firm.

 

China, however, refuses to work with us, so the tariffs against them are still going up.

 

The response?  The Stock Market is rising.  Soaring.  After plunging, it had the best comeback in history.  More than 75 countries have responded with diplomatic overtures, so there is a pause on their tariffs.  A 90 day probation period, in a sense.

 

China is playing hardball, but Trump is standing firm.  The Democrats are screaming how the prices of Chinese goods will skyrocket.  Fine.  Buy American.  They argue on some products there are no alternatives.  Yes, there are.  Adjust.  Buy American, or buy from the countries that are playing ball with us and companies that are moving their manufacturing to American shores.

 

President Trump is wielding tariffs as a tool.  Democrats are complaining, saying Trump flip-flopped on tariffs, or he’s guilty because he didn’t tell anyone that he was going to pause the tariffs as he did.  Of course he didn’t.  You don’t reveal your hand during a poker game.  Well, he kind of did.  When he was negotiating with those other countries he told them, work with me and I will make it easier on you.  Then, once the ninety-day pause went into effect, the market, which had been plunging, responded wonderfully.  It’s global-trade driven, not an indicator of American economic health, but the markets soared.  And now, the Democrats are eating their words.  Their excuses and claims have vanished in front of their eyes.  The Stock Market rose nearly 3,000 points.  NASDAQ went up by 12.1%.  The market experienced its biggest rise in history in one big giant magnificent lurch.  The bond market is also doing well.  Some people were listening to the Democrats, getting queasy, because they didn’t understand what Trump was up to.  They don’t understand economics the way President Trump does.  They don’t understand his plan.  They are unable to grasp the long-game.  They are reactionary in the short-term, rather than understanding we are playing a long-game for America’s future economic and commerce health.  President Trump is playing chicken with these countries, but we are on board a big rig and they are in miniature beep-beep carts.  They would get crushed if they didn’t swerve in time.  They swerved, and Trump suspended the tariffs.

 

Trump is operating with a firm hand in a world of communist wet noodles.  Play nice, or be punished by our strength.  Work with us, or remain alone on the outside.

 

Countries were dying to make a deal.  But you need to operate from a position of strength for that to happen.  Meanwhile, the liberal left progressive commie Democrats are weak, because they want to bring America down.  They want the communist notion of soaking the rich, in this case America, so they are brought down to the same level of misery as the rest of the world.  They’re globalists. They are communists.  They hate the foundation of what America is all about.  They want America to reside in a weaker position.  They believe in the progressive tax rate where the wealthy takes it in the chin.  They think they are being fair.  No, it needs to be good for America.  There is nothing wrong with taking actions to ensure that our country prospers.  When we prosper, the rest of the world is better off.  If we are going to keep our economy from collapsing, we can’t play their game.  We have to be firm, and stand on our strengths.  We must not allow them to ruin us with their high rates.  I don’t care if they are upset.  We are making progress.  Real progress. 

 

Why is it that the Democrats don’t want manufacturing in the United States?  The tariffs are the way to bring manufacturing back to our shores.  If you don’t want to pay a tariff, bring your manufacturing here.   If there is no tariff, we are reducing taxes, regulations, and the other government obstacles to doing business plus they now have dropped their tariffs and our goods are better able to reach international markets, so bring your manufacturing here because now the rest of the world is looking for American products because tariffs against American-made products are essentially gone and China is now on the ropes.

 

Either way, manufacturing comes to the United States.

 

Eventually, China will cry uncle, too.

 

President Trump is doing to China what President Ronald Reagan did to the Soviet Union.  He’s hitting them with economic bombs.  China thinks they can run with us.  They loved the way it was.  They have been parasites on the free markets while hitting the United States with communist progressive taxation tactics.  But, they will lose.  When manufacturing vanishes in China, the people will rebel as they did in the Soviet Union.

 

— Political Pistachio Conservative News and Commentary