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Notes -
I noticed there is a slow drible of talk about some of Trumps Executive Orders. I kinda wanted to talk about all of them as a package, and some of them more specifically. I would advise everyone to just go ahead and read all of the executive orders (there are about 50):
https://www.whitehouse.gov/news/
They are generally short, about a page long. The titles are descriptive of the goals, so you can even skip reading many of them. And you don't need to hear about them via a second hand source.
I got the general gist of all of them within an hour or two on Inauguration day (when they were posted).
My general impressions:
Me, too, but I still prefer tariffs.
What about the complicated economics case?
Other countries need the American market more than Americans need foreign production. Or, that should be the case if it is not already.
What about the sovereignty case?
Across the border is a foreign land with foreign people and foreign laws. Some goods can come across the border, but in a country as big as the USA, there is nothing that must be acquired abroad.
What about the warfighting case?
DJI drones will kill so many people this century, of that I'm sure. What happens when your geopolitical rival is the one supplying all of your military?
What about anything other than simply maximizing currency?
I'm talking again about self-sufficiency. America should be self-sufficient both because it is virtuous and because it better ensures her long-term safety.
I haven't even gotten to the real reason I prefer tariffs: how else are you funding the government? Right now, it's income taxes, which is taking resources away from the most productive people in order to reallocate them. I suggest that it is not the most productive people that we should be taxing. Trump has floated getting rid of the income tax, and if he replaces it with tariffs then I'll faint with joy.
What is the basic economic case for confiscating 25% or more from every person in the country?
A tax on the unimproved value of land, obviously.
I don't like perpetual taxes. At least with income tax, you're only taxed when you make the money, not every year thereafter. Of course, they tax you ten different ways on that money that's already been taxed, but at least the income tax concerns a particular event in time, not simple a particular area in space.
As far as I know every state levies a property tax, so the "perpetual tax" ship has sailed.
And everyone hates it. We don't live in a perfect tyranny, you need popular buy in- and property taxes high enough to fund the government(as opposed to some corrupt school construction projects) won't have them.
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To reiterate the basic case:
Specialization and trade is the engine of ALL economic growth. There is a theoretical maximum point for any economy where everyone is as specialized as possible and trading away for everything else they want. International trade extends this theoretical maximum point. We might already be living beyond the point of maximum wealth if the US was only going to trade with itself.
I'm not entirely sure what point is being made for the "complicated economic case" or the "sovereignty case".
And how much are you willing to pay in average cost of living for these things? Should we be 20% poorer, 50% poorer, 90% poorer to support these things? Or is anything shy of 100% poorer acceptable? And like most economic issues its not just a one time payment, its an ongoing payment. So even being 2% poorer a year means that in about 30 years you are 50% poorer than you would have been.
Tariffs supported government revenue back in the day when alcohol taxes were enough to be about 25% of government revenue. I would love if goverment was that small. Tariffs are currently a rounding error as a revenue source. And I don't think there is a realistic way to get that number high enough.
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