Trump: 35% Import Tax

Trump: Tax goods manufactured and imported to the USA from Mexico and China at 35% and save American jobs in places like Suffolk County, NY which has lost the lion’s share of its manufacturing jobs to low-wage countries. Think of the domino effect: Chinese plants close causing massive unemployment (there are lots of people in China.) China gets pissed off and calls for payment on some or all of its $1.26 trillion in US Bonds/Debt, interest rates skyrocket, inflation rears it’s head with a vengeance, the dollar tanks to record lows. 2009, and even 1929 all over again.  US product prices are so expensive, they are virtually unsellable anywhere in the world.  Beating economics is like trying to control the weather. Eliminating or changing a material component of this financial organism, over which we have very little control anyway, will cause the entire entity to perish.

The Middle Engish definition of the word “Tax” is, “The power to distroy.”  The definition has been softened by modern day political correctness to, “A burdensome charge, obligation, duty, or demand.”  In either case, taxation impedes economic entity growth and stability, draining them of whatever benefits that arise from the free market economy that powers them.   The answer is to let the system run its course while retooling American workers at jobs that the Chinese can’t do at a lower margin. It is impossible for a system that pays $20 ph in the US to compete with one that pays $.30 ph.

The Elephant in the Room

I just took a quick look at the US National Debt Clock.  While the look was indeed quick, the just over $19 Trillion debt increased by $6 million during the glance.  I shudder to think of how much the US National Debt would have increased had my glance became a gander!  $19 Trillion, that’s $160K per taxpayer, materially more than triple the median annual household income of about $51K.  To put it lightly, we are a bit over leveraged!  Enter, the elephant in the room.

My 6 year old is reading a short story about the food chain.  The insect eat the plants, the frog eat the insect, the big fish eats the frog and the bear eats the fish.  This process has been full force in the wild since the the origin of life.  It’s like a speeding freight train, you just can’t stop it without compromising and ultimately destroying the entire process.  Our elephant in the room almost universal acceptance by our Government that it is OK to spend more money than you acquire from Taxes.  The consumer wants Government services, the Government’s elected Officials provide these services irrespective of the cost, the consumer re-elects the Government Elected Official.  Any breach in this process limits the longevity-in-office of the Government Elected Official; hence, the US National Debt.   The term “Government Elected Officials” spans both the Legislative and Executive Branches of both the Federal and State Governments.

Government Elected Officials are thankful that the concept of the US National Debt is an elusive concept.  Consumers/Voters hear it over and over again but few fully understand the concept and how the whole economic system grinds to a halt when the interest on the National Debt exceeds the US Government’s ability to service the interest on that debt. This is called the “mother of all defaults” that, if it was to occur, would undoubtedly cause the Global Economy to crumble.  You can all imagine what will happen next…