Wow. Thank you and for referencing Jeff Childers work, too. We live in interesting times. "This is what Trump now must implement—an American Dividend for equal sharing of the bounty of a real productive economy."
I used to sell life insurance ( term insurance) and we had to learn the definition of a dividend, which is the return of a premium overcharge. It'll be interesting to see if an American Dividend bears fruit 🤞🙏
Right. It's absolutely essential for them to include all working people--at whatever level--in the economic bounty that is available through these programs. They seem to have the right idea and good intentions. Not just more handouts for the rich and the grifters.
So this comment steers more to TRump's current tariffs rather than the history of Hamilton.
Tariffs have been a part of the US since founding, including key source for federal funding prior to income tax during civil war period and again pre WWI as pointed out by Mr. Cook's Our Country, Then and Now, Clarity Press, 2023.
Key point of a tariff is to make foreign competing products more expensive than domestic made products. This aspect of tariffs has been popular elected and non elected over the decades including the "general manager of the Nation", dominating tariff and monetary policy, the Honorable Sen. Nelson W. Aldrich of Jekyll Island fame.
So, my question and or observation is this, "what is the real reason for the world wide reciprocating tariff spat because it is not for the normal reasons condensed above?"
Trump's tariffs have boosted factory employment in protected sectors by approximately 0.4% but have reduced payrolls by 2% in industries affected by rising costs due to higher import prices.
This is a net negative impact, compounded by job losses in export-dependent industries facing retaliatory tariffs from other countries.
Broadly speaking, as we are all aware of the off shoring of American manufacturing since the late 90's often under the banner of "free trade" and the use of "globalized supply chains" which is the front phrase for low cost foreign labor. One need only remember the "supply chain" disruptions during 2020-2021emergency period.
"Manufacturing will come racing back in order to avoid the high tariff costs" it has been claimed.
But will they really? Of the top of my head I say "no" for the following:
* Capital cost of new manufacturing facilities is too great under the quarterly performance program of Wall Street, which would also dearly affect those stock options of the C suite.
* EPA regulations which were a part of the reason to leave are still in place.
* In roughly 3.5 years there will be a new president in office, "our man" this time is the discussion at the super private clubs.
* Countries such as China, Mexico, and Vietnam continue to have significantly lower production costs compared to the U.S., even after accounting for tariffs.
So recapping at the risk of a 'run on sentence', tariffs are not high enough to off set cheaper foreign production costs while regulations and costs to re shore manufacturing would destroy the current profit picture given the wait and see window is only about 3 years and very few American firms currently benefit from the traditional tariff protections of protecting their market from foreign competing products, what is the hidden agenda of the TRump tariffs?
The basic objective of the tariffs is simple--to reduce the US current account deficit by lowering the net trade deficit.
But it's not really that simple, is it?
Complicating the matter is that it's this trade deficit that ships dollars abroad to be used as the world's reserve currency. This is what allows the US to run the budget deficits used for 800 military bases around the world. Take those away, and the empire is gone.
The Trumpites haven't gotten this figured out yet and may never.
Also, nations are in competition over trade because of a complex financial issue that always makes national income insufficient to purchase national GDP. There is always a "gap." It's the gap that produces trade wars leading to hot wars.
The existence of the gap has been known about forever. The solution, which no one wants to address, is the issuance of a national dividend to a nation's citizens allowing them to purchase what is produced. That's why the COVID payments prevented a bigger crash. "Pump priming" using the Fed's balance sheet, not government bonds. A neat trick.
I have been writing about this since I retired from the US Treasury and will have more coming out about it on Three Sages.
Very complex with a long history. That's why I mention Hamilton who knew nothing about real macro-economics. He was just copying the Bank of England which also drove Britain into endless wars.
Thanks for sharing a link to Real American Patriot's Substack article; "A Patriot’s Perspective: From Colonial Scrip and Greenbacks to the Gold Standard and Bitcoin A selective outline of United States monetary history." Also for sharing the link to American Geopolitical Institute in this article.
From the Real American Patriot article you shared:
“To justify and preserve the confidence of the most enlightened friends of good government; to promote the increasing respectability of the American name; to answer the calls of justice; to restore landed property to its due value; to furnish new resources both to agriculture and commerce; to cement more closely the union of the States; to add to their security against foreign attack; to establish public order on the basis of an upright and liberal policy. These are the great and invaluable ends to be secured by a proper and adequate provision, at the present period, for the support of public credit.” -Alexander Hamilton, Founders Archives, 1790
With the establishment of the First Bank of the United States the Washington administration successfully created an engine for cementing the Union and improving the country. Alexander Hamilton removed the confusion of the prior systems by creating a common currency among the states that, through the vehicle of a national bank, assumed the war debts from the American Revolution, established sound security of the American name abroad, and implemented a system to provide credit for internal improvements (today called infrastructure projects) to the American Nation.
Wow. Thank you and for referencing Jeff Childers work, too. We live in interesting times. "This is what Trump now must implement—an American Dividend for equal sharing of the bounty of a real productive economy."
I used to sell life insurance ( term insurance) and we had to learn the definition of a dividend, which is the return of a premium overcharge. It'll be interesting to see if an American Dividend bears fruit 🤞🙏
Right. It's absolutely essential for them to include all working people--at whatever level--in the economic bounty that is available through these programs. They seem to have the right idea and good intentions. Not just more handouts for the rich and the grifters.
So this comment steers more to TRump's current tariffs rather than the history of Hamilton.
Tariffs have been a part of the US since founding, including key source for federal funding prior to income tax during civil war period and again pre WWI as pointed out by Mr. Cook's Our Country, Then and Now, Clarity Press, 2023.
Key point of a tariff is to make foreign competing products more expensive than domestic made products. This aspect of tariffs has been popular elected and non elected over the decades including the "general manager of the Nation", dominating tariff and monetary policy, the Honorable Sen. Nelson W. Aldrich of Jekyll Island fame.
So, my question and or observation is this, "what is the real reason for the world wide reciprocating tariff spat because it is not for the normal reasons condensed above?"
Trump's tariffs have boosted factory employment in protected sectors by approximately 0.4% but have reduced payrolls by 2% in industries affected by rising costs due to higher import prices.
This is a net negative impact, compounded by job losses in export-dependent industries facing retaliatory tariffs from other countries.
Broadly speaking, as we are all aware of the off shoring of American manufacturing since the late 90's often under the banner of "free trade" and the use of "globalized supply chains" which is the front phrase for low cost foreign labor. One need only remember the "supply chain" disruptions during 2020-2021emergency period.
"Manufacturing will come racing back in order to avoid the high tariff costs" it has been claimed.
But will they really? Of the top of my head I say "no" for the following:
* Capital cost of new manufacturing facilities is too great under the quarterly performance program of Wall Street, which would also dearly affect those stock options of the C suite.
* EPA regulations which were a part of the reason to leave are still in place.
* In roughly 3.5 years there will be a new president in office, "our man" this time is the discussion at the super private clubs.
* Countries such as China, Mexico, and Vietnam continue to have significantly lower production costs compared to the U.S., even after accounting for tariffs.
So recapping at the risk of a 'run on sentence', tariffs are not high enough to off set cheaper foreign production costs while regulations and costs to re shore manufacturing would destroy the current profit picture given the wait and see window is only about 3 years and very few American firms currently benefit from the traditional tariff protections of protecting their market from foreign competing products, what is the hidden agenda of the TRump tariffs?
Excellent analysis and all good questions.
The basic objective of the tariffs is simple--to reduce the US current account deficit by lowering the net trade deficit.
But it's not really that simple, is it?
Complicating the matter is that it's this trade deficit that ships dollars abroad to be used as the world's reserve currency. This is what allows the US to run the budget deficits used for 800 military bases around the world. Take those away, and the empire is gone.
The Trumpites haven't gotten this figured out yet and may never.
Also, nations are in competition over trade because of a complex financial issue that always makes national income insufficient to purchase national GDP. There is always a "gap." It's the gap that produces trade wars leading to hot wars.
The existence of the gap has been known about forever. The solution, which no one wants to address, is the issuance of a national dividend to a nation's citizens allowing them to purchase what is produced. That's why the COVID payments prevented a bigger crash. "Pump priming" using the Fed's balance sheet, not government bonds. A neat trick.
I have been writing about this since I retired from the US Treasury and will have more coming out about it on Three Sages.
Very complex with a long history. That's why I mention Hamilton who knew nothing about real macro-economics. He was just copying the Bank of England which also drove Britain into endless wars.
Thank you
Thanks. Obviously "every stick has two ends."
Thanks for sharing a link to Real American Patriot's Substack article; "A Patriot’s Perspective: From Colonial Scrip and Greenbacks to the Gold Standard and Bitcoin A selective outline of United States monetary history." Also for sharing the link to American Geopolitical Institute in this article.
From the Real American Patriot article you shared:
“To justify and preserve the confidence of the most enlightened friends of good government; to promote the increasing respectability of the American name; to answer the calls of justice; to restore landed property to its due value; to furnish new resources both to agriculture and commerce; to cement more closely the union of the States; to add to their security against foreign attack; to establish public order on the basis of an upright and liberal policy. These are the great and invaluable ends to be secured by a proper and adequate provision, at the present period, for the support of public credit.” -Alexander Hamilton, Founders Archives, 1790
With the establishment of the First Bank of the United States the Washington administration successfully created an engine for cementing the Union and improving the country. Alexander Hamilton removed the confusion of the prior systems by creating a common currency among the states that, through the vehicle of a national bank, assumed the war debts from the American Revolution, established sound security of the American name abroad, and implemented a system to provide credit for internal improvements (today called infrastructure projects) to the American Nation.