Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

24 March 2009

The New Smoot-Hawley Tariff Coming

As though much tighter socialist control over the American economy were not bad enough in delaying any recovery from the current recession, Obama and the remainder of the Tripartite Axis Powers (TAP or the Administration, House, and Senate) will use punishing tariffs to keep Americans from importing goods made abroad in countries which do not have carbon taxes or cap-and-trade laws such as the TAP plans for us.

Along with the New New Deal of Socialism comes the New Smoot-Hawley Tariff Act. The Great Depression was greatly deepened and extended by the combination of the New Deal of Socialism and the Smoot-Hawley Tariff Act. The New Smoot-Hawley Act will put high tariffs on products imported which use high energy inputs in their manufacture, such as aluminum products, steel, glass, paper, cement, and fertilizer. These products will become very expensive in the U.S., so U.S. manufacturer's will try to produce more of them abroad instead of in the U.S. after the carbon cap-and-trade law goes into effect. But, both these U.S. multinationals and foreign firms in countries without tough carbon taxes will be kept out of the American market by the New Smoot-Hawley Tariff. This tariff or adjuncts to it will also be designed to punish imports from countries with minimum wage laws deemed too low by the Democrats, with other environmental policies they do not like, and with laws not sufficiently favorable to the unionization of workers. The net result should do a very efficient job of cutting off the import-export trade of the U.S. and greatly hurt the world economy. Of course, it will be the equivalent of shooting ourselves in the head, as government power mongers peculate the American people.

You can read more about a part of these plans in the Wall Street Journal article about the Secretary of Energy's comments about a new carbon tariff here.

No comments: