Here’s the audio of this week’s Wheels Up! with Bill Meyer over at KMED FM in Medford, OR. We talked about Trumpian tariffs and some other things, too:
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Speaking of Trumpian tarrifs, the Orange Asshole just imposed 50% tariffs on Canada, so Canada will return the favor by imposing a 50% export tax on lumber, oil, and other stuff that Trumpenstein conveniently left off the tarrifs list. Nothing like a 50% increase in lumber prices to make housing more affordable. I wonder if his Wall Street cronies got tipped off to position themselves for a windfall of cash in the markets since, per usual, his announcement comes on the weekend with the markets closed.
A thought experiment often offered in economics classes: if one had to pay a 15% tariff to move goods across the border from New York to Pennsylvania, and from New York to Massachusetts, would the US be richer or poorer?
Almost surely poorer — if Amazon were obliged to file Customs entries for every interstate shipment, ‘stuff’ would surely cost more, as much from delays and inefficiencies as from the duties themselves.
So how does it help us to impose harsh duties on goods shipments between the US and Canada? The US has the greater leverage, being the larger economy. But deliberately picking a fight with a traditionally friendly neighbor seems gratuitous and stupid — the act of a prickly old man, obsessed with the delusion that tariffs are a magic elixir.
It doesn’t occur to Donnie Demento that he’s invoking Section 338 of the Trade Act of 1930, which ushered in a decade of Depression. And it’s going to be different this time? I reckon not!