Friday, March 23, 2018

NO TRADE WAR! NEVER!

            HAL ROGERS AND HIS POLITICAL CRONIES IN THE REPUBLICAN LEADERSHIP, ALONG WITH DONALD TRUMP TALK ABOUT "TRADE WARS" AS IF THERE ARE "GOOD TRADE WARS".
             The Republicans are concerned about the "trade deficit" with Communist China and most other nations.   What the "trade deficit" means is simply that we sell a certain amount of goods and services to a foreign nation such as Communist China, and they turn around and sell a lesser amount of goods and services back to us made by Chinese labor.  The difference, or the "trade deficit" is what cash in American Dollars, and more specifically American hundred dollar bills that Communist China keeps as part of their "currency reserve".  So we end up with us holding millions of dollars of Communist Chinese manufactured shirts, pants, and suits; and, in exchange, Communist Chinese holding millions of dollars of American paper money in the form of hundred dollar bills, or checks or other credits in the form of American money in their account.  As an American economist has commented, American money is not wealth, it is merely a claim against wealth--the real wealth is the consumer goods, such as shirts, pants, and suits that the American people hold as a result of their trading with the Communist Chinese.
           KENNETH STEPP would vote against any "trade war" with Communist China or with any other country or group of countries.  If Communist China or anyone else wants to stock up on American money, and allow us to stock up on goods that they have manufactured, or metals such as steel and aluminum that they have removed from the earth,and melted and smelted and molded into moveable metal, we can live with that.
           As far as the Republican-championed heavy tariffs on steel, aluminum, and other products, against some nations as Communist China, but excluding the tariffs from American allies such as Canada, Mexico, Chile, Korea, and other friendly nations,  KENNETH STEPP would vote NO, because these heavy tariffs are likely to cause a trade war.  A trade war means we stop buying their goods and services, and they stop buying our goods and services.   That would cause unemployment among many of our agricultural workers, and aircraft workers.    KENNETH STEPP says NO to new tariffs and NO to a trade war.

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