I like economy courses in college. They made sense, and a lot more that the political science course. Economics is not much of a science but more of a business class even if they like to call it a social science, but politics is not a science. Politicians just like to think they are scientist.
With this in mind, tariffs do have both an economic implications and also political implications!!!
And it becomes obvious that President Trump is using them for both reasons!!
If you want to stop dangerous drugs and even people from coming across our southern boarder, then for political reasons you might implement tariffs. And it looks to have already worked to a large extent. 10,000 Mexican troops to our southern boarder to stop the flow of people and dangerous drugs into our country is a clear result of President Trump. Even if you disagree with his policies, he has been effective at what he said he was going to do.
But another part of his promise was for economic improvement. That probably won't happen as quickly, but tariffs also collect taxes and in so doing they encourage others to do things like open up businesses here in the USA as opposed to somewhere else. And what many people do not understand is the effects of the flow of money to a society. Let me explain.
In an economics course it was pointed out that if a new factory is built in a city the effects of the yearly income in that city was about 5 times the amount of the sales taken into the city by the new factory, because the new money from the new factory flows around the city during the year and it multiplies the total money being spent about five times.
So if you bring in a factory that brings in 1 million dollars of sales to the city, that 1 million turns into about 5 million during the years. The factory pays the new workers, the new works buy the things they need and want from the city, like food, cars, teachers, and so on. So, more businesses and government entities spring up around the new business. Therefore, if and when Trump gets a huge foreign company to invest a billion dollars in the USA the USA gets 5 billion dollars of new income for the people here. Yet if that same factory goes to say China, then China gets those 5 billion dollars of new income.
Now Trump, a businessman would understand this, but the news anchor at anti-Trump station not only would refuse to understand this but probably would need a few courses in economics to get it. Though this is not hard to understand. The point is that Trump, a very successful businessman had great success in his first term because he applied what he knew as a successful businessman, and the politicians didn't like it nor even understand it. Oh, they can hire a economist, but since they want to hear what they want to hear, they will not be willing to accept what they are told.
I knew the instant Biden and the democrats said they were spending a lot more money we were going to get massive inflations. Any economist knows that, because even money has a supply and demand curve. That is the first thing they teach you in economics. So if you make more money the money is not worth as much - inflation. It's a form a taxation and that does not bring more into the economy. But open up a new factory making chips right here in the USA, that does produce more and will reduce inflation.
And while it is admittedly a bit harder to understand, it is for that same reason that tariffs are essentially a tax on the country the tariff is imposed on. In the short run you might see prices go up here, but in the long run new factories will open up here and so the cost of the tariff is paid indirectly and proportionably by the other country.
Oh the anti-trump, unknowledgeable on purpose, reporter will want to know exact when, because they hate Trump. But it will happen in the long run, and start happening as soon as the investment in the new factories starts happening. Even that starts money flowing in the form of new bankers and construction workers, and will continue as the factories turn out new product. And unless we are paying five times less than what we can make if for here, or don't have the workers, then it will benefit the USA overall.
And what should you do if the Democrats suddenly brought in millions of new people into the USA. You gotta put them to work, and get the bad ones out, right? Biden caused massive unemployment, even though they didn't count the millions of new illegal immigrants as such. If they came up here we might as well get the factories for them to work going. Isn't that why our President Trump wisely imposed tariffs and brought in billions in new investments? Yeah it is.
And the neat thing about being a Christian, is that we know the King of Kings and how he makes all things work out for those who love Him. So even if Biden administration want to bring in millions of illegal migrants in order to get new Democrat voters to keep in power, the Lord is smart enough to being in a wise businessman and even keep him alive while evil was trying to kill him, so a Christian nation can recover from it and get better still. But that just means we need to praise the Lord all the more and keep praying for our leaders.
