Tariffs and Trade Agreements

Robert Samuelson provides a good argument for Free Trade, though it may not be as simple as presented. The denial of the Bush "trade promotion authority" would as an intrinsically good thing, noting his relative quick removal from Office, and the fact most of the Trade negotiations within his two terms of office were stymied by overreaching demands of his political supporters in the Corporate world. Economists possess an immediate and total aversion to tariffs of all types, refusing to consider their value in the regulation of Trade. I personally would prefer an economic scenario where Congress and President were allowed allowance to introduce their own tariffs when of benefit to the United States, rather than elimination of all foreign tariffs on American Products overseas. We currently deny Ourselves protection from outrageous discrimination, while ranting about the use of such protection by other nations.

Economists claim Tariffs as a major culprit in the occurrence of the Great Depression; something alleged, but never totally framed in my mind. The limited amount of Trade in the Period (based upon Cargo haulers, and Distribution Costs) could never have had sufficient impact to counteract the over-Investment of the Period, the build-up of Warehouse stock without established market for the Product, or the impulse of Business management to save Profitability through massive Layoffs of labor. Trade cannot resolve a basic economic failure.

Tariffs have a traditional base in the World economy, serving not only as protection of Job security by Labor, but as insistence that national economies develop as balanced entities. The only element proven by Globalization has been that the World economy can be as adversely affected by economic misallocations, as are national economies; the only difference consisting a degree of magnitude. An innate national integrity of economy remains the sole protection from Recessive conditions. Integration into a Global economy at too excessive a bonding can bring a long period of national recessive conditions (ask Japan about this effect). Tariffs can be a good source of revenue, protection from dependence, and an effective manner to control Consumer Prices and Import Costs. Do not sell Tariffs short, without examination of possible benefits. lgl