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~ USA Headed for a 5th Revolution! Why?

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Monthly Archives: October 2018

#312 Republicans Have Given Away Their Soul…and the Country’s Soul. How Do We Get It Back?

28 Sunday Oct 2018

Posted by Jordan Abel in Causes of the Revolution, Lessons of Revolution, Societal Issues

≈ Leave a comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution and author, Entry #1.  Most entries are formatted as conversations. Characters appear in a number of entries, with many entries building on previous conversations.

Occasionally I do a “sense check.”  Auditing one’s own work is problematic but I try to be objective.  Entries #300 and #301 are the most recent standard “sense checks.”   The last three entries, including this one break from the conversation format.  Characters will return soon.

Ever notice how many adults seem to take statements at face value, never asking, “Why do you make that statement?” or “What’s the source of your data?” The lack of curiosity seems particularly prevalent around elections and among those who quit reading newspapers regularly and rely primarily on the internet and/or specific cable channels for what is often opinion disguised as news..

Hear Speak See No EvilHow many people do you know have joined a “political tribe”?  And as a member of that tribe, no longer question even the most outlandish statements of tribal leaders?  Think about how passive these tribal members have become.  Do you know of any self-respecting four year-old who would take your statements as gospel and quit asking “why?” Chances are you’ll have a hard time finding a four year-old who fits that category.

dunce capsI know some blog readers think that lately I’ve been beating up the Republicans too much.  Maybe so, but given the behavior of the so-called leaders of the Republican Party, such criticism seems more than justified.

For starters, has anyone in the Republican Party asked “Why do we so ardently support a president whose actions are seemingly contrary to everything the Party has promoted the past decades?”  Maybe the Republicans should start to act like that self-respecting four year-old and ask some questions.  Here’s a start on a list of questions:

  • Why are we…yes, we Republicans…supporting a guy who coddles known enemies, starting with the Russians but including a host of other bad characters?Putin
  • Why are we no longer supporting free trade, a bedrock of the Republican Party for decades?
  • Why are we trashing our best allies in favor of known enemies?  (Ever think about the implications of alienating countries that we might need later?  Do you behave this way toward your friends?)
  • Why did we knowingly and enthusiastically pass tax legislation that transfers more money to the wealthy, takes away money from the middle class and is already resulting in ever-larger and unsustainable budget deficits?
  • Why are we following Trump and effectively promoting violence against certain groups within the US?
  • Why are we ignoring a basic tenet of most religions to treat thy neighbor as thyself?
  • Why are we barring refugees from entering this country legally?  (Yes, refugees have a right to enter.)
  • Why are we cutting funding for public education, which has been the bedrock of economic growth for decades?School Bldg
  • Why are we encouraging companies and people to pollute when there are numerous directives in the Bible to leave the earth a better place?
  • Why are we encouraging discrimination against people who are gay?  (Look folks, nearly every family has someone who is gay.  Get over it.)
  • Why are we ignoring a key provision of the Constitution by not letting citizens vote or making it extremely hard for citizens to vote?  (The Republican Party has produced no evidence in any location in the US of voter fraud.)
  • Why are we ignoring the 1st Amendment right to a free press?  (Yes, a free press is protected by the 1st Amendment.)NYT Logo
  • Why are we supporting claims that a free press is the “enemy of the people” when such claims are used by dictators?  (Need some evidence aside from Trump’s outright statements that the media are the enemy?  Start with the killing of Jamal Khashoggi by the Saudi government…and the tepid, if not bizarre, response by Trump.  If that’s not chilling enough, please read some history about how Hitler and others claimed the media was the enemy as part of their plan to help create dictatorships.)
  • Why are we accepting and even cheering “trash talk” and “name calling” by the Duncepresident when such talk from your children would result in punishment?
  • Why are we going to great lengths to support someone for the Supreme Court who lied under oath to Congress?
  • Why are we supporting a president who, after a mass shooting in a synagogue, says the synagogue should have armed guards?  (And, who was wounded at the synagogue — a mere four police officers who were heavily armed.  Do you think all religious institutions should have armed guards? )
  • Why are we trying to take away individual rights of women (Roe v Wade) yet insist on individual rights for gun owners?  (The gun-owner argument is based on a wild exaggeration about rights granted the 2nd Amendment.)    pants-on-fire
  • Why do we support a president who is a serial liar and lying more frequently each day?
  • Why do we support a president who cheats on taxes and then appoints someone to head the IRS who will minimize the likelihood of any serious audit of Trump’s taxes?
  • And the list goes on and on and on.

The questions are not political questions.  No one is challenging whether an individual has the right to be a Republican and/or conservative and/or fundamentalist Christian.  The questions are ethical and directed at making sure Republicans understand the core values of a democracy.

ScreamWhy have Republicans decided to abdicate truth in favor of Trump?  Why have Republicans decided to abdicate core values of a democracy for a guy who openly courts leaders hostile to the US?  Why have Republicans given up having America be the shining light worldwide for fairness and moral standards?

I am baffled why Republicans support such behavior.  I have no clue other than thinking the  Republicans have been brainwashed.  Whatever the cause of the brainwashing, giving away one’s core values, as have Republicans, is like giving away one’s soul.  And what did all but a handful of Republicans get in return?  Think hard because the answer is “You got nothing.”  Even if you got a bunch of money, whatever amount you got likely wasn’t worth your soul.  Further, once the trade for your soul has been made, getting back the soul will be very difficult, if not impossible.

fife-drum%201 (Just to be clear, Democrats are not completely clean…but the behavior by the Republicans in supporting Trump overwhelms any bad behavior by Democrats  Claiming the behavior is equal is a false equivalency.)

So what’s the consequence of Republicans selling the country’s soul to Trump and his cronies?  Unfortunately, so many Republicans seem to have sold their soul, the only way the country can likely start to get back on the right course is with a revolution — aka the Revenge Revolution.  And, even with a revolution, the road back will be very long and very bumpy.  Not a pleasant thought, I know, but one all of us should be thinking about.

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#311 Why I Left the Republican Party…Rather It Left Me

17 Wednesday Oct 2018

Posted by Jordan Abel in Sense Check, Societal Issues

≈ 1 Comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution and author, Entry #1.  Most entries are formatted as conversations. Characters appear in a number of entries, with many entries building on previous conversations.

Occasionally I break from the normal formatting and do a “sense check.”  Auditing one’s own work is problematic but I try to be objective.  Entries #300 and #301 are the most recent standard “sense checks.”   

This is second consecutive unanticipated entry.  In entry #310, “Will Kavanaugh Accelerate the Revenge Revolution?” I indicated I had voted for Republicans in the past.  A reader asked me to elaborate on why I left the Republican Party. This entry addresses the question.

abraham_lincoln_clip_art_15515As noted in #310, my reference point is a Republican Party of Abraham Lincoln, Everett Dirksen and Jacob Javits. The attitude of that Republican Party could best be described using a slogan from Bush 43’s 2000 presidential campaign, “compassionate conservatism.”

Why that reference point for the Republican Party? I grew up in Illinois with very early years on the north side of Chicago but formative years in Central Illinois. Central Illinois is an interesting mix of agriculture and manufacturing with the center-point the University of Illinois in Champaign-Urbana. For those unfamiliar with the area, the soil is stunningly productive for farming – corn, soybeans and many other crops. Throw in a seed and a plant grows.  They soil color is coal-black and crumbles easily in your hand. The soil is not gray, not reddish-brown but black.

The farms ring a number of medium-sized towns that provide the center of commerce for farmers. For many years, the towns were supported by manufacturing plants, and in some cases corporate headquarters — Caterpillar in Peoria, for example. Populations for most of these towns ranged from 25,000 to 75,000. Population mix was mostly western European and a smaller percentage of blacks, many of whom had migrated from the south. Religions leaned more toward Protestant than Catholics and some towns had a surprising number of Jews. In our neighborhood grammar school, for example, about 20% of students were Jewish.

School BldgIn our particular town – population approaching 50,000 – the public school system was top-notch with quality teachers in all grades. High-school students had a choice of three tracks and could switch between tracks for a limited number of classes – college prep, general education, technical training. The town produced a disproportionate number of famous and successful people in a wide range of occupations – education, entertainment, medicine, military (early astronaut), science and industry.

Like most school districts years ago, busing was limited to outlying areas that could not support a school. Most everyone attended a neighborhood grammar school and a middle school that was reasonably close. There was one very large, well-equipped public high school (and a parochial high school). And guess what? As a student, you needed to figure out how to get to high school on your own.

As far as fiscal attitude – conservative. If a family was wealthy, it was expected to be discrete about displaying wealth. Everyone was expected to share with others to the extent possible. A description for sharing can best be described by Nike’s tagline – just do it…and keep quiet about it. Shouting and bragging were definite no no’s.

This town was part of the ellipse in Illinois where Lincoln spent most of his time before heading to Washington.   While the area was solid Republican, the voters were not tribal Republicans. Most people, from what I recall, voted a split ticket.

And, no, the town was not Mayberry II, although there were many of these same attitudes. The town did have its problems. Most blacks were clearly on the lower rungs of the economic ladder. While doubtless discrimination existed, I do not recall the discrimination being overt and certainly no signs at restaurants, drinking fountains and other public places. Further, different groups seemed to work together to address problems.

Shake HeadSo that’s a description of the Republican Party I grew up with and use as a reference point for those running for political office. Such a Republican Party no longer exists. When I hear a Republican call it the party of Lincoln, I shake my head and want to scream. Most of today’s Republicans have no clue about the values of the party of Lincoln.

Back to the reader’s question, “What made me leave the Republican Party?” Based on my reference points for the Republican Party, I didn’t leave the Party, it left me. While I’m still a compassionate conservative – compassionate socially and conservative fiscally – I’m now branded a screaming liberal. What happened to Republicans’ social conscious and fiscal conservatism? The party now can be described as bi-polar…and not taking medication. The Party has shifted to the extreme ends for social issues and fiscal recklessness.

The slide from fiscal conservatism started under Ronald Reagan. How can that be, you say. Reagan was a fiscal conservative.

buffettI share the view of many economists that a very good way to assess the potential impact of debt for a country is to measure outstanding debt as a percent of GDP (gross domestic product). Think of it this way. Pretend you’re a banker. Two people walk into a bank and want to borrow $25,000,000. One of them is someone like you…and the other is Warren Buffet.   The bank decides on loans based on income and assets. For someone like you, the $25,000,000 is likely to be multiples higher than your income and assets. For Warren Buffet, the $25,000,000 is considered chump change. Thus, a large amount of debt isn’t necessarily bad if you have a large income and/or large asset base, which the US does. The US government owns lots of land and buildings.

ReaganFollowing WWII and up to the Reagan Administration, debt as a percent of GDP declined. During the Reagan Administration debt as a percent of GDP increased from about 30% to about 50% — a relative increase of 60%. Under Reagan, the relative increase in debt was only somewhat less than experienced during the New Deal under FDR. Under Bush 41 relative debt percent increased over 25% beyond Reagan. Under Bush 43, relative debt increased over 40% from the Clinton years.  Under Trump, despite a very strong economy the Federal debt for FY2018 was the highest in 6 years. The deficit under Trump is expected to balloon to over $1,000,000,000,000 annually because of the gigantic tax cut that reduced taxes primarily for the wealthy.

Debt and GDPWhat about debt increases under Democrats? They were even worse, right? Well, no. Throughout the Clinton Administration, debt as a percent of GDP decreased a little over 12%. During some years under Clinton, the US ran a surplus. Under Obama, relative debt climbed about 35%, even with the combination of fiscal stimulus required to avoid another Great Depression and the introduction of the Affordable Care Act. Debt under Obama, despite all the cries from Republicans increased less than under either Regan or Bush 43. So, which party is more fiscally conservative? If you look at fiscal policies under Republicans, one term comes to mind – red ink.

Let’s look at social policies since Reagan. Policies to concentrate wealth, as have been implemented by Republicans, negatively affect the general well-being of the populace. Tax cuts primarily for the rick, aka “trickle-down economics,” does not work, nor has any Republican provided any empirical evidence of it working in any developed country. As more wealth has flowed to the top, there has been less wealth in the middle.

Minimum WageFurther, Republican have resisted increasing the minimum wage. When Reagan was inaugurated, the minimum wage in real terms (adjusted for inflation) was about $10.00 per hour. Today’s minim wage is $7.75 per hour, a decrease in real terms of more than 20%. The decrease reduces further the ability of lower-skilled, entry-level workers to earn enough to exceed the poverty line. What happened to the “compassion” of the Republican Party?

Adding to the lack of “compassion” is the effort by Republicans to take away individual rights…at least for people who don’t buy into the Republican doctrine. According to Republican right, the US is a Christian country – just forget why the Pilgrims left England. Therefore, all laws should follow what the religious right believes. Take Roe v Wade. Forget the rights of the mother, she does not matter. Forget that the baby cannot survive outside the womb until much later in the pregnancy. All abortion must be banned…despite the First Amendment.

ConstitutionJust in case today’s Republicans have not read the Constitution, as is abundantly clear from listening to President Trump, the First Amendment reads as follows, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or the press (see the press is not your enemy but protected!), or the right of people to peaceably assemble, and to petition the Government for a redress of grievances.”

While Republicans want to deny individual rights with regard to abortion…and ignore the First Amendment…Republicans insist that the Second Amendment is all about individual rights.  Well, individual rights are OK as long as guns are involved. The Second Amendment reads, “A well-regulated militia, being necessary to the security of a free state, the right of the people to keep and bear Arms, shall not be infringed.”

What does the Second Amendment really mean? The wording allows individuals to own firearms. In Central Illinois, most households, including ours, had some type of firearm. In fact, I have the same rifle I purchased at about age 14.

WashingtonAt the time the Constitution was written…for all the “Constitutionalists in the crowd” that was 225+ years ago…the United States had a very small “standing army.” The defense of the country relied on “well-regulated” state militia – think National Guard. Members of the well-regulated militia were “citizen soldiers” and expected to provide firearms, as implied in the Second Amendment. Over time the US created a permanent military for “the security of the free state,” thus the standing army eliminated the need for citizen soldiers.

With the advent of a standing army, a strict interpretation of the 2nd Amendment might have banned citizens from owning firearms. But citizens have been allowed to retain firearms. With a standing army there is absolutely no need or justification for military-grade weapons to be held outside the “well-regulated” standing army. Weapons such as military-style assault rifles and higher-caliber rifles, especially a .50 caliber rifle, are designed to kill as many people as possible.

These weapons are not designed for deer hunting or target shooting. Yet, thanks to the NRA and some politicians, an individual is able to own a military-style assault weapon, and even worse, a .50 caliber rifle. For those not familiar with these weapons, a .50 caliber rifle will blow a hole in the side of a brick building. You don’t need that much firepower to take down a herd of charging elephants, which are not common in most US neighborhoods. If you want to go play with these type weapons, then go join the US military.

Now, what about consistency? Republicans state that since one must register and get an ID to drive, have an ID get on an airplane, have ID cash a check, and probably register your dog, plus who knows how many other instances, then one should have to register and show an ID to vote. All the registrations and ID are for your safety. OK, then following that same line of thinking, surely Republicans would support mandatory registration of individual firearms – for your safety, of course.  Mmm, so what’s the big objection?

I could go on but it should be clear why I no longer vote Republican. The Republican Party of today is not compassionate, not conservative…and not consistent… and certainly does not hold the same values of Lincoln, Dirksen and Javits. Your comments welcome.

#310 Sense Check: Will Kavanaugh Accelerate the Revenge Revolution? Is There a Moderating Force?

09 Tuesday Oct 2018

Posted by Jordan Abel in Sense Check, Societal Issues, Stupid Is as Stupid Does

≈ 2 Comments

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution and author, Entry #1.  Most entries are formatted as conversations. Characters appear in a number of entries, with many entries building on previous conversations.

Occasionally I break from the normal formatting and do a “sense check.”  Auditing one’s own work is problematic but I try to be objective.  Entries #300 and #301 are the most recent standard “sense checks.”  

This “sense-check” entry was unplanned. What precipitated this entry was the confirmation process to have Brett Kavanaugh become a SCOTUS justice.

fife-drum%201As a result actions during the confirmation process, I increased the chances of a 5th US revolution to “highly likely.” However, my reasons for changing to “highly likely” may be different from what many others have stated or written about the Kavanaugh nomination/confirmation process.

Some background – the Constitution states the president shall nominate candidates to be SCOTUS justices. The Constitution requires Senate approval of the nominee. The Constitution does not provide many guidelines. For example, the Constitution does not prohibit a president from nominating someone whose views or interpretation of laws are considered to be extremely right or left, and therefore likely outside the views of the populace. Nor does the Constitution require the nominee be a current member of the judiciary. The nominee could be a dishwasher at a restaurant.

ConstitutionFurther, there is no requirement that the president nominate, or the Senate confirm, candidates to ensure a balance of opinion on SCOTUS. While the situation unlikely, say if all liberal-leaning justices left the Court during the term of one president, the president could nominate and the Senate could approve, justices so the entire Court supported rulings considered far right.

With that background, my assessment of the likelihood of a 5th revolution associated with the Kavanaugh confirmation has little to do with Kavanaugh’s political views or interpretation of the law. What I believe is the wedge that will almost ensure a Revenge Revolution is the attitude and actions of key members of the Senate – most notably Senators McConnell, Graham and Collins. Most of the balance of this entry is directed at the behavior of Senator McConnell, whose actions I believe have deepened the chasm between parties to such an extent that it might be another 50 years or more before the Senate functions as it should. The chasm will exist even if the US experiences a Revenge Revolution.

(And readers, if you think I’m a bitter hard-core liberal, you are sadly mistaken. For years I was a “thinking” Republican, in the vein of Lincoln, Dirksen and Javits. But the Republican Party has shifted far right and key members of the Party seem to have lost their ability to think and reason. There is no room for me in today’s Republican Party. In today’s Republican Party, Lincoln would be considered a screaming liberal, if for no reason other than he liberated “those people.”)

Supreme CourtOver the decades, what has allowed SCOTUS rulings to be recognized as law of the land by the populace? Obviously not everyone has supported every decision but why have even controversial decisions become the law of the land? Trust by the people in the objectivity of the justices.   In parallel, the Court’s decisions likely have been moderated to a degree by public opinion. Justices have recognized the need to create trust and acknowledge public opinion so the vast majority of SCOTUS rulings have not been too far left or right.

What’s changed with the Kavanaugh nomination? McConnell blindly led the charge to confirm a candidate that far less than half the American public supported. What’s even more puzzling, McConnell stated achieving the confirmation for Kavanaugh was “…his greatest achievement (again).”

McConnellLet’s take a closer look at McConnell’s greatest achievement. The initial phase of this latest “great achievement” was McConnell denying president Obama the right to have the Senate consider a nominee to fill an open seat on SCOTUS. According to McConnell the vacancy should be filled “after the people vote.” Forget the Constitution, forget precedent, McConnell alone should decide when a vacancy on SCOTUS should be filled.

Waiting for the people to vote applies only to nominees of Democratic presidents and not Republican presidents. Following Justice Kennedy’s retirement after the 2017-2018 term, McConnell flip-flopped. The hell with the rationale used to deny Obama his rightful pick by never having a hearing re Merrick Garland – and instead let’s push for a shorted confirmation process for Brett Kavanaugh. This time the Senate should confirm the nominee before the elections. Now McConnell thinks the people shouldn’t speak. Just to make sure any thinking Senator couldn’t make an informed decision about Kavanaugh, McConnell (through Senator Grassley) withheld a vast number of documents written by Kavanaugh during the Bush Administration.

Dig HoleTo further build public trust…or maybe that’s distrust…in Kavanaugh, McConnell (this time thru Grassley and Trump), stonewalled efforts to dig deeper into Kavanaugh’s past. Charges ranged from sexual assault to excessive gambling. Rather than let the FBI explore a series of allegations fully, the Judiciary Committee allowed only one key witness to testify – yes, only one – Dr. Christine Blasey Ford.   Kavanaugh followed Dr. Ford and managed to create even more concern about his truthfulness and demeanor as publicly insulted Senators seeking answers to some basic questions and even lied about what he should have dismissed as youthful indiscretions.

Just to make sure even more trust in Kavanaugh was eroded, McConnell, again through Grassley and Trump, restricted a supplemental FBI background check. The FBI investigation was limited to basically asking if Kavanaugh regularly kicked his dog in public. There were no follow-up interviews with either Ford or Kavanaugh. Equally baffling, 40 or more witnesses who could have provided more insight into Kavanaugh’s past were never interviewed. Let’s see Mitch, the FBI was not allowed to interview Dr. Ford, Kavanaugh…or anyone who possibly had relevant information. Great way to build trust in the FBI report. And, one more thing – remember Mitch the Judiciary Committee hearing was not a trial. It was a job interview. People with demonstrated nasty dispositions are usually not hired for positions of public trust.

092615_2031_Characters12.gifWhile those on the political right might view with great satisfaction McConnell’s tactics of attempting to hide the truth about Kavanaugh, thereby giving the finger to the left, how would the right react if a nominee from a Democratic president had the same questionable background and exhibited the same rude behavior as Kavanaugh? I can hear the cries now, “Lock him up! Lock him up!”

Among people who actually think about issues and people’s behavior…yes, there are such people…hypocrisy and lack of trust are major negatives. Among people who think, the end result does not justify unethical means to achieve.

I’ve said in several entries that many Republicans appear to be brainwashed. I continue to be dumbfounded at how seemingly intelligent people make incredibly stupid decisions. Under the Trump presidency the brainwashing seems to have been especially effective on Republicans in Congress.

CollinsSenator Susan Collins is among the brainwashed or brain-dead. Collins gave a 45-minute talk justifying support of Kavanaugh. Her remarks included some truly nonsensical statements. For example, she claimed that as a sitting judge, Kavanaugh has consistently supported legal precedent…unless he considered the precedent wrong. Huh, Susan? In real speak that means precedent plays no part in Kavanaugh’s decisions. Why would anyone ever make such an inane claim? Collins was also interviewed on “60 Minutes” the day after the confirmation. Based on her comments during “60 Minutes,” no one would ever accuse her of being a deep thinker. Enough about Collins.

GrahamThen we have Senator Lindsey Graham. Graham’s behavior of late could be compared to that of Stormy Daniels in one of her movies – constantly taking on new positions and new partners, including cuddling up to president Trump. At least Stormy Daniels has been straightforward with the public about her beliefs. No so for Graham. Say Lindsey, do you not remember any lessons from John McCain?

McConnell’s claim that his greatest accomplishment was getting an unqualified, unpopular nominee who lied to the Senate, approved for SCOTUS sets the stage. Mitch baby, if you think Kavanaugh is your greatest accomplishment, then your value system is highly skewed in the wrong direction. Worse still, you are a perfect complement to Trump. Neither of you has any principles.

Goes Around Comes AroundAmong people who have principles, there is an adage that most learned early in life. Mitch you must have missed the class…again and again and again. The adage is, “What goes around, comes around.” The follow-on part of that adage is when it comes back, the intensity is usually much greater. My suggestion Mitch? Be on the lookout because your life is about to begin heading down a very steep hill.

Where does all this lead? The Revenge Revolution seems “highly likely.” What’s worse, with the Revenge Revolution there may be far more bloodshed than any “revolution” since the Civil War. Just as a reminder, entry #1 in this blog talks about a roughly 50-year cycle between US revolutions. Some of those revolutions have been military and some social. The last great social upheaval in the US began with the events of 1968. If I do my math, 2018 is just about 50 years later.

John RobertsIs there any hope? Yes, there’s some. While we probably can’t avoid the Revenge Revolution, the intensity could be moderated by one person – Chief Justice John Roberts. Roberts is a smart guy. Roberts knows his legacy will be determined by how credible the public views decisions of SCOTUS. Roberts also knows he’s got two justices who are considered illegitimate by many people – Thomas and Kavanaugh.

What can Roberts do? Move left on a number of high-profile cases, making sure the decisions are more balanced. Roberts is likely to twist some arms and seek some 6-3 or 7-2 decisions. People understand not every decision will be what they want. But thoughtful decisions that consider the concerns of groups left and right will help maintain credibility of SCOTUS.

Thanks for your time reading this entry. As always, comments welcome.

#309 Can We Talk Economics? Do Tariffs Really Work…or Does the Working Stiff Get Screwed Again? (#2 in Series)

06 Saturday Oct 2018

Posted by Jordan Abel in Economics, Education Issues, Gov't Policy

≈ Leave a comment

Readers: this blog is set in the future (sometime after the year 2020). Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. More about the Revenge Revolution and author, Entry #1.  Most entries are formatted as conversations. Characters appear in a number of entries, with many entries building on previous conversations.

Occasionally I break from the normal formatting and do a “sense check.”  Auditing one’s own work is problematic but I try to be objective.  Entries #300 and #301 are the most recent “sense checks.”  Your thoughts are welcomed and appreciated.  Thanks for your time and interest…and comments, please.

Scene: Jordan’s office, Washington, DC, start of workday.  “Can We Talk about Economics” conversation began Entry #308.

092615_2031_Characters7.gif

Gelly: “Professor Jordan, now that you’ve had a break, ready to explain more economics?”

Jordan: “Professor, hardly, but yes, let’s continue. Any topic in particular?”

Gelly: “I’d like to know more about tariffs. I think I understand the concept but not sure how effective tariffs really are, especially for worker bees.”

Jordan: “OK, tell me your understanding of tariffs. Why would a country implement a tariff?”

Shaking HandsGelly: “First, let me make sure I understand the idea of trade between two countries. I get the part where one country might have stuff the other country needs, or makes some product more efficiently than the other country. That all seems logical. What also seems logical is that trade should be fair. Maybe I’m being naïve but shouldn’t trade between countries be like what we were all supposed to learn as kids…you know, treat your neighbor as you want to be treated?”

Jordan: “Gelly, how do you boil complex issues down to such basic ideas? You’re right, trade should be fair to both sides.”

Gelly: “Like most any relationship, sometimes trade probably gets out of whack and one country has an advantage that needs to be adjusted. Is that what tariffs are supposed to do? Provide a balance? Or maybe protect some industry or set of products?”

Jordan: “Yes, that’s the theory. However, for trade to work long-term, the industries being protected should be considered ‘critical’ for some legiimate strategic reason.”

Coffee Bean GuyGelly: “Critical such as growing and exporting coffee beans might be critical to the economy and welfare of the people of say Costa Rica? Coffee’s probably a big deal to Costa Rica but hardly of any importance to the US…other than maybe Hawaii.”

Jordan: “Right.  Because coffee has such a major impact on its economy, Costa Rica could add tariffs to any coffee imported from say Brazil or Columbia in order to protect its economy.”

Gelly: “I get that part.  Then what impact would a tariff have on exports from Costa Rica? People in Costa Rica can’t drink all the coffee grown there. If Costa Rica added tariffs to products imported from other countries…and those countries then added tariffs to Costa Rican coffee…wouldn’t that hurt exports? Tariffs seem like a two-edged sword to me.”

Poker PlayersJordan: “For countries with only a few products to export and where those products do not have much competition, tariffs might work. But, for most countries, tariffs are a high-risk poker game. While coffee can’t be grown in every country, in can be grown in many countries. Unless your country is a real big dog for that product or commodity, the country adding tariffs runs the risk of losing exports.”

Gelly: “For countries with lots of different kinds of products – Germany, Canada, China, the US – tariffs seem a lot more complicated.”

Jordan: “I said earlier you were becoming an economist. Keep talking.”

Gelly: “Isn’t trade between countries also affected by currency rates?”

Jordan: “Yes, but put currency rates aside for a few minutes. We’ll cover that later.”

Gelly: “OK, so if the US say claimed China was selling steel at too low a price, the US might put a tariff on steel made in China or goods produced with steel made in China. But what really happens after the tariff is implemented?”

CornJordan: “Well, for one thing, China can then decide to add tariffs to some goods imported in China from the US – say corn or soybeans, which is exactly what they did after Trump put tariffs on Chinese steel.”

Gelly: “Those tit-for-tat tariffs can go on for a long time. And what do they accomplish?”

Jordan: “Good question.  To answer your questions let’s look at what happened after Trump put tariffs on raw steel and aluminum from China…and Canada, of all places.”

Gelly: “Did the price of Chinese steel increase after the tariffs?”

Jordan: “Yes.”

Gelly: “Did American companies start selling more steel?”

Price IncreaseJordan: “Some but the US steel companies did what often happens in the US when tariffs are implemented – the US companies immediately raised prices.”

Gelly: “C’mon, how much could that increase really cost a company? Couldn’t have been that much, could it?”

Jordan: “Soon after the tariffs were announced, Ford said tariffs on steel and aluminum would increase their cost at least $1,000,000,000 per year. And that’s the cost to just one company.”

Gelly: “This might sound dumb but if a company’s costs keep going up, wouldn’t the company raise prices? For Ford, they would have to increase prices of cars and trucks, right?”

Jordan: “You got it.”

ScrewedGelly: “Then, unless I’m missing something, the tariffs really end up being a tax on consumers. The government might collect revenue from the tariffs but the consumer – the working stiffs – are the ones who gets screwed.”

Jordan: “Now, remember what happened to the corn and soybean farmer after Trump put tariffs on Chinese steel and then China retaliated?”

Gelly: “The Chinese didn’t stop consuming corn and soybeans…but the Chinese began buying corn and soybeans from other countries. So the tariffs caused US farmers to lose exports to a major market…and the same farmers ended up paying more for their tractor and pick-up truck. So why do tariffs like the ones Trump imposed seem so stupid?”

Confused Clip ArtJordan: “A lot Trump’s tariffs were head scratchers. In fairness, sometimes trade between countries does get out of whack. And tariffs can help resolve the issue. But tariffs are like a Band-Aid, for small wounds and to help only temporarily. There’s a better way to solve issues when trade gets out of whack…and a better way to manage trade.”

Gelly: “You mean like trade agreements? Agreements such as Nafta or whatever Trump tried to rename it?”

TurtleneckJordan: “Yes, trade agreements. The agreements usually include what you might call a trade court.  That court helps revolve issues and avoids tariffs.”

Gelly: “I’m interested in learning more but need to put this conversation on hold, please. I’ve got a conference call in a few minutes and need to get ready. Let’s continue later, OK?”

Jordan: “Deal.”

(Continued)

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