Tweet of the Absurd

Here's a walk down memory lane.  From June 16, 2016....

click on the nonsense for a closer look

 

And in today's news – defying two years of President Trump’s America First trade policy of tariffs the U.S. trade deficit in goods hit a record in 2018.  Yes, you read that correctly.  A record. 

Don’t take my word for it - the Commerce Department announced today that the United States last year posted a $891.2 billion merchandise trade deficit - the largest in the nation’s 243-year history.    In all fairness, the overall situation isn’t quite as dire as it appears to be if you add back to the calculation services such as tourism, higher education and banking.  Nevertheless, the trade gap grew 12% last year to $621 billion - the widest since 2008. 

China has pretty much stopped their purchases of key American exports – namely agricultural products like wheat, soybeans and sorghum.   China turned to Brazil for soybeans last year forcing American farmers to continue to sit it out or sell their crop at a loss.  In case  you missed it farm bankruptcies are now at a ten year high.  

What is fascinating to me is that this problem is in large part imaginary.  For instance, my family has a trade deficit with the grocer.  We have a trade deficit with the gas station.  I have run a decades-long trade deficit with the laundry and dry cleaner.  An imbalance in trade, in and of itself, is not a bad thing.  It is capitalism. Get my drift?  This fixation on trade deficits is no different than Donald Trump’s puerile mischaracterization of tariffs.  Tariffs are not paid by China.  Tariffs are paid by American manufacturers who import stuff from overseas.  In-turn they either ‘eat’ the added tax (reducing their profitability) or pass it along to consumers in the form of increased prices.  No matter how you slice it Americans pay it.  As a matter of fact they have footed the entire bill for the Republican tax increases tariffs.      

So, after two years of increased Republican taxes tariffs on imported goods we now have farmers and ranchers getting hammered, increased consumer prices, poor relations with our neighbors and allies, the gross inefficiencies of a state-sponsored and centrally-planned economy and record trade deficits.  For all of his tweeting  Trump hasn’t even reversed the trade deficit needle.  He’s blown it up! 

My kingdom for a return to sane, Republican free trade and capitalism from the days of yore. 

Pass the popcorn please….