It was suggested by a commenter that Cohen is no longer a Democrat and he gives “exclusively” to Republicans, the article in the business insider reading only the first paragraph does suggest this, if however you read the rest of the article it acknowledges that Cohen gives to both parties just more(and chump change really for a man of his wealth)to Republicans since 2009and according to Wikipedia and other sources Cohen remains a registered Democrat.
KOHN'S Voice will no doubt be missed, but it was not he who divided Trump from his fellow Republicans. Rather, it was Trump himself who, by constantly shifting his position and apparent (but deceptive) loyalties, manages to gain the upper hand. An observation was made that in competitive computer games, logical responses were defeated by an unpredictable violent troll. And so it is with Trump, who has loyalty to none for longer than it takes him to forget what he committed to within the past 10 seconds. In addition to his apparently severe limitations in the linguistic, memory and brain as well as executive functions of the brain, he aslo has two powerful malignant influences from the start. From birth through college, it was his father who, in 1917, was arrested for fighting with police after a KKK rally; then his demented mentorship with Roy Cohn in the 70s when he, for example, along with his father, refused to rent apartments they had built to African Americans. Cited by the government, they sued for $100 million. The case was dismissed and Trump Inc had to pay undisclosed fines as well as to sign a dissent decree. Trump has continued with that pattern of attack and chaos, food fight and calm, bequeathed to him by both his extremely violent father and extremely demented mentor, Roy Cohn. Why the GOP permitted Trump to stand as a candidate is a severe indictment of the party. Who would chose a person involved in 3,500 + suits, and counting?
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Clyde Prestowitz? Until this story this reader, who daily keep up with politics, policy and economics and the many voices in that mix never so much as heard of this naysayer who says the "average guy" (not person but guy so there's immediate insight into a revanchist mind) -- who says the average guy "...seems as happy as a clam with the tariffs."
In commenting on policy one should not say stupid things. It is stupid to say clams are happy. We don't whether they are or are not happy or which clams are happiest if any of them are, whether quahogs or longnecks.
Likewise, We don't know who the "average guy" is though we do know that 51% of the population are not -- as in the title of that great musical -- guys but in fact gals. In any case there is yet no poll on this tariffs issue but if asked to explain the issue and its long history in American political and economic discourse, it is arguable how many would have much knowledge.
It is however abundantly clear that Trump has none of that knowledge but only some very stupid prejudices combined with complete lack of knowledge of history and total misunderstanding of the current and increasing international economic and political imbalance that, through his mis-leadership, is separating us from the developed world and making us a non-player in the developing world.
If there is an American "average guy" Mr. Prestowitz, then he is old white, lacks education and diverse experience and is a dying species.
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Trump knows how to take it to his adversaries.
"So, the vast majority of Americans don't think I'm doing a good job as President, eh? Well, take that America! No one knows how to take down an enemy better than I do! And that goes for too, global economy! You've been warned!"
The downward spiral continues.
If government, before Trump, had done their work, Trump would't be talking about this. During the campaign Trump talked about an item made here and shipped to Mexico paid a tariff but not if the very same item was made there and shipped here which had no tariffs. How did this happen?IOt will be interesting.
This has important consequences for the longterm association of unions with the Democratic Party. AFL-CIO and the United Steelworkers have both come out strongly for the tariffs. They don't buy the assertions that the tariffs will result in negative impacts to other sectors of the economy and will ultimately hurt even their own industries. They're angry and feel like they're being ignored by the rest of the country.
In contrast, Democrats, as a group, are strongly opposed to the tariffs. A Quinnipiac poll released yesterday has 11% of Democrats for the tariffs, 73% against. Republicans more closely track the union position with 58% favoring the tariffs and 20% against them. (https://poll.qu.edu/national/release-detail?ReleaseID=2525)
This is just another sign of the political shift going on among voters working in older American industrial sectors. Strongly unionized precincts in Pennsylvania, Ohio, and states in the upper Midwest are put in play by this. Demagogues like Donald Trump are standing by to exploit these economic dislocations.
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Cohn can call himself what he wishes but it was not a Democrat who foisted the Trump tax cut on America.
Unprecedented incompetence, unbridled arrogance, utter and complete corruption of both idea and behavior, and utter chaos... ? Have we had enough of "winning" yet? Can we take any more?
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No one who knows the correct length at which a tie should be tied or who wears a perfectly tailored suit has any business in this administration and so Mr. Cohn indeed should have resigned. I trust that upon returning tro Goldman Sachs he will find his compensation at least equal to that of a cabinet secretary. I do sympathize.
If you're going to trade, you can have cheap imports OR you can have expensive tariff protected labor in the United States. Obviously, a spoiled brat would want both. But, I'm sorry, that just isn't going to happen.
Trump's God complex makes him think he can make the world into whatever he wants. Unfortunately for us, reality doesn't work that way.
Who was it that said elections have consequences? Now we get all kinds of alarm sending from people who voted for the loser. Even more ridiculous, we get a so-called "resistance" movement from clueless Democratic politicians who have been holding on to power for decades. Was Obama really their last hope? Unfortunately, there's no else coming up. Democrats just don't win anymore.
When Gary Cohn says he came to Washington to do a tax cut for the wealthiest .01% of Americans, what he really means is that came to Washington to do a tax cut for himself. Recall that Gary had hundreds of millions of dollars in Goldman Sachs stock. Gary got to sell out out of that position tax free. He pocketed between $45 and $200 million in deferred tax savings. Not bad for a years worth of work even if he beslimed and beclowned himself working for Mafia Don.
That said, I am sorry to see Mr. Cohn go. Mr. Cohn may be greedy but his sane. Mafia Don is greedy and insane so we need some orderlies in the Whitehouse to keep POTUS from doing things like destroying the country until impeachment hearings get started.
We're getting thin on staff. For example, Wilbur Ross, Secretary of Commerce, is in a perpetual state of "Dazed and Confused."
This is pure chaos and insanity on the world's greatest stage. As Mueller gets closer, as he does almost daily according the press reports we are receiving with frightening regularity, Mafia Don is going to become increasingly erratic.
After 50 years of middle class prosperity...
A REPUBLICAN (Saint Ronnie) introduces us to the Laffer Curve and trickle-down. (It's been 40 years and we're still waiting on that first drop of trickle, but it's coming any day now, for sure). And then...
A DEMOCRAT (Slick Willie) repeals Glass-Steagall. (And nobody thought to tip off the middle class to the fact that after 70 years of stability in the consumer/commercial banking sector, their banks had abruptly become gambling predators.) And then...
A REPUBLICAN (Dubya) presides over the worst economic meltdown since the Great Depression. (I mean, why wouldn't you make a Goldman Sachs banker the head of the treasury? Everyone knows the Vampire Squid cares only about what's best for all Americans.) And then...
A DEMOCRAT (Obama) fills his economic team with Wall Street insiders who proceed to hand over billions in bailout funds to the bankers who caused the meltdown, funded by the taxpayers, while leaving the taxpayers to twist in the wind. (Of course the middle class patriotically paid their taxes so failed banks could hand out bonuses to failed bankers while those same banks foreclosed on their homes.) And then...
A REPUBLICAN (Cadet Bone-Spur) re-adopts Smoot-Hawley. (What could possibly go wrong?)
And the ruling class wonders why voters are disgusted with all of them.
Hint to the DNC: Don't be so afraid of your progressive base. There's a reason the Gilded Age was followed by the Progressive Era.
We're there.
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Call me crazy, but I'm starting to think there's a connection between Trump's sudden surprise announcement about the steel and aluminum tariffs and his comments on gun control and the NRA one day and next day meeting with the NRA after which he appeared to back off on the previous things he had said. Not afraid of the NRA? Like fun he's not. So he's got to appear to be putting his foot down somewhere (and getting some presumed love from his base while he's at it) and tariffs is it, for now. It appears to me to be little more than another Trumped up distraction served to the public. Which also means that as far as the issues go, he is not looking at them in themselves but only in relation to what he thinks they can do for his political career. I don't think you can get more purely cynical than that. Let's face it. This is a guy who just likes to jerk people around.
Always trust an expert!
We all know that Trump's most prolific business skill is filing for bankruptcy. He's already done it on six separate occasions and he just wants to make sure the United States is the seventh. After all, Vladimir Putin deserve a return on his investment, right?
My suggestion? How about a 500% tariff on anything Trump or his family tries to sell outside the United States? The real estate, the hotel rooms, the condos, Ivanka's shoes and jewelry? (Don't worry, we already know you're too smart to buy his ties, his wine or his steaks.)
BTW: I love the fact that the EU is going to hit Republican states the hardest. LOVE IT! Serves those guys right for backing a birther in the first place.
Why did Mr. Cohn leave at this point in time because of a trade war or a Banking Bill currently working it's way thru the Senate to the tune of 250 billion bank reforms and regulations? And with all the other issues facing the country why are fellow democrats supporting it? As Mark Warner stated for 4 years we have been working on this...for Wall St. Funny no DACA ,gun issues, infrastructure...ect. coming to the Senate Floor for debate....heavy lobbying...CBO says the Banks will reap in benefits...
Campaign Finance Reform and Lobbying Reforms from the other side of Wall St...
Fair Trade or Fare monies for the consumer?
Trump has consistently delivered on the extreme right-wing conservative Republican agenda. He's delivered on their racist xenophobia with DACA, ICE and a justice department attack on defiant states. He's delivered on government intrusion into a woman's right to private medical decisions with Neil Gorsuch. He's thrown greedy corporations the biggest fish they have seen in decades with the tax cut. They were willing to put up with incompetence, vulgarity and conspiracy to defraud the vote as long as he played ball. It will be interesting to see what happens now that he bites the hand that feeds him.
Let us give up the pretense that Trump's inane decrees have anything to do with rational economic policy. Trump plays to his base...the same uniformed group of racists, and bigots that voted for him in 2016. He constantly seeks their approval. It is part of his madness. Facts, experience, common sense the best interests of the American people have nothing to do with the confused gibberish that spews or tweets from Trump daily.
Trump is who he is and always has been. We must hold the Republican leadership responsible for the disaster that has befallen our nation. Get out the vote and throw these anti-patriots out of office!
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Can't believe I'm writing these words, but I actually agree with Trump on this one. 'Free' trade was a grand experiment that made the 1% fantastically wealthy. But it was disastrous for labor and for the working class. Will a single tariff revive the fortunes of working people? Of course not. Yet at this point I'll take whatever we can get. At least it's not another trade deal written by and for the global elite.
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As a citizen of a country that is "cheating" I am curious as to how we are achieving that. In the case of aluminum, bauxite is imported and refined here(primarily in Quebec). This is because it has "tremendous" hydroelectric resources and electrical power is comparatively cheap due to geography and rainfall. The wages in the industry are good (and I would expect at pare or better than those in the States) and of course we are all burdened with a single payer health system. Where does the cheating enter into the equation?
If you think the Canadian government is subsidizing the production costs then you should buy all you can and drive us into bankruptcy.
Alternatively, you could buy Chinese solar panels (also subsidized) place them in the SW States and refine the bauxite there and drive China into bankruptcy.
or you might consider that circumstances allow Canada to refine aluminium more effectively and efficiently than you can and that we could trade to mutual benefit.
Just say'n
Canadian should welcome the Trump tarifs on steel and aluminum. It may be counterintuitive but once you understand that Canada sells highly specialized alloys used for Defense and medical devices, you then realize that this market is not going anywhere for Canadian companies.
For those Canadian worrying that US mills and smelters could start producing the same alloys, stop worrying. First the production of these metals require extreme quantities of energy. That’s why most smelters are located in Northern Quebec where hydro power is cheap. Secondly, these alloys (read mixtures) are highly secret AND protected by patents. So if US mills start producing them, they will have to pay royalties to Canadian patent holders (free money- nice).
Next time the US elect a businessman as president, let’s hope they pick a successful one who understands how business works. Not a six time bankrupt one who has been struggling since he got his money from daddy.
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You see, "business friendly" Republicans and DLC "centrist" Democrats want BOTH the huge corporate tax cut (14 percentage points in one year has never been done) AS WELL AS free movement of capital, both money and labor, around the globe. All this without helping those negatively impacted except to meaninglessly mouth some drivel about going back to school for more "training."
Funny how House Speaker, Paul Ryan, Senate majority leader, Mitch McConnell, Sen. Hatch and Sen. Coryn are quick in their response against increased tariffs on imported steel and aluminum. These leaders support Trump and his Presidency in every lie and personal sordid depravity. But when confronted with possible retaliation from the EU and other countries like China which would hurt their home states most with loss of jobs and no demand for their goods, they criticism was immediate. I hate to say this. But in a perverse way, this could be the revival of the GOP. And the time it takes before Trump's rhetoric is put in place, these leaders can spring into action before their states are hit in the solar plexus. Because the retaliation threats are real, a trade war where everybody loses.
“While it seems that the tariff issue is reopening a fundamental schism between Trump and old-line Republicans, the average-guy voter Trump seems to aim at and do rather well with seems as happy as a clam with the tariffs,” said Clyde Prestowitz - Doesn't this really say it all? It not about sound economic policy, it is not about economic growth, it is not about anything other than what pleases a minority of Trump voters who have no real insight into how our economy works. We are letting the "average-guy voter" now also dictate economic policy. We let this same group choose our president as well and we can all see how well that turned out.
This past week, the New York Times and many of its readers have matched Trump for exaggeration and bombast. The sky is falling. There won't be Christmas in Cincinnati.
I am no fan of Trump. An across the board tariff might be the wrong approach. But it will have no impact on the economy. As for trade "wars", most is speculation and bluster on all sides, and the rest is business as usual.
How many here have even read the Section 232 reports, or are aware that the EU is worried because U.S. tariffs on steel mean that the cheap steel formerly destined for the U.S. will now displace expensive domestic steel in Europe?
It's easy to understand why corporate heads might want to cry foul. Here is some advice for those good citizens: stop buying back your stock and pass your corporate tax cut savings on to the consumer; problem solved.
Will Trump claim that American salaries aren't competitive enough to gain an edge in global trade? Cuts and tariffs are not market driven solutions. They are authoritarian in nature and discredit democratic capitalism. Trump is a threat to what has made America great, as an economic power in the world and he is doing so by taking our rights to participate in such decisions away from us. Impeachment or bust.
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The point I find ironic is that it never was the common worker who benefited from all of these free trade agreements. The manufacturers made products less expensively, but at the same time took American jobs away. From that scenario, I see only one group that has truly benefited. An this is being done in countries that treat the environment and their workers as disposable commodities.
The second irony is is these moneyed manufacturers who stand to loose the most if tariffs are implemented, and I am sure they were big supporters of Mr. Trump. The average American will be the second to loose, since many commodities will need to be more expensive due to the facts that these costs will be passed along to the consumer. These will not be absorbed by manufacturers.
Rather than using a shotgun approach as proposed by Mr. Trump, we should be targeting those industries and finished products that are subsidized by the state to put only those products on an equal playing field in the United States.
Additionally, those products that are made using exploited labor, or materials that damage the environment should be charged a tariff to reflect these costs and discourage their consumption.
Forget tariffs. The quickest way to make US businesses more competitive in global markets and at the same time put more money in the pockets of working Americans would be to implement universal healthcare. Saddling businesses with the burden of providing healthcare for their employees is expensive, wasteful, and removes focus from core competencies. For American citizens, especially for people with families, healthcare costs consume most of the highest financial outlays and are the single biggest reason for personal bankruptcies. Our refusal as a nation to provide universal healthcare is both morally and fiscally shortsighted.
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I'm curious if it's at all possible to create a globalized system that doesn't leave behind millions of people? Because that's what this is all about, no? Proponents of free trade - aka globalized capitalism - are the establishment in American political and economic life. In fact, they're the establishment in Europe and Asia.
But as the rising populist backlash in America and Europe attests, this system is harming a lot of people whose prosperity and economic opportunity has dwindles in the past couple of decades. I realize that this right-wing populism also comprises a lot of ugly xenophobia and racism - but it wouldn't have had the chance to rise if the economic disenchantment wasn't present.
The Gary Cohns of the world - and indeed the Dem and GOP establishment - don't offer a real solution. Their solution is essentially more of the same - with a stronger safety net, or abstract "skills training" offered by Democrats. As working class pushback in Europe shows, however, a stronger safety net isn't all that is required.
I honestly don't think the globalist establishment has any answers. Sure, for them, it's all coming up roses (and to be fair, as an educated 'coastal elite,' I benefit from the status quo too), but unless inclusive solutions that take into account the plight of the left-behind are proposed, I expect the current turmoil to continue.
Who would work for Trump? After 14 months I think we have our answer: family members. Consider the WH a small family owned motel near an interstate. That's the operations model that Trump the business mogul relates to, family owned motels, cheap ones at that.
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Non-issue. All we have to do is get through the March 13th special election in steel-dependent Western PA and Trump will suddenly see the error of his ways and change his mind.
"The average-guy voter Trump seems to aim at and do rather well with seems as happy as a clam with the tariffs".
We'll see how happy they are when their jobs start evaporating.
Eduardo Porter argued in The Times (March 2016) that NAFTA created a North-America-wide auto industry able to compete on price, thereby staving off competition from China. In so doing, it may have saved the 800,000 jobs still remaining in the U.S. auto sector. Of course, that is small comfort to the 350,000 auto workers who lost their jobs. http://tinyurl.com/h962tl9
Like Democracy, free trade is the worst possible system—except for all the others. Protectionism had been tried for centuries and had impoverished nations, leading them to war. Free trade, with all its imperfections, has led to prosperity and peace.
The answer is not to be found in attacking free trade—that's tilting at windmills—but to provide new jobs and training for those dislocated. For those who care to look, good examples can be found in Western Europe.
Myself, I fault the liberal Democrats. They did little or nothing, when they had a chance, to help those left out by globalization. Not only did they turn their backs on the working class, but they justified their indifference by attacking the entire working class as racist, as benefiaries of white privilege, undeserving of any help.
That is rich irony coming from an entrenched meritocracy that has, above all, benefitted from white privilege. Now these liberal Democrats are reaping the whirlwind.
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It would be ironic if the ONE THING that finally makes the GOP step away from irrationally embracing and excusing crazy Trump is Trump imposing tariffs on corporate global trade.
Collusion with the Russian govt and nepotism? No big deal
Deeply crass sexism against women? No big deal.
Tariffs? That is over the line for the GOP.
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At this point, I’ll be surprised if the GOP does anything other than “thoughts and prayers”.
Instead of bailing on trade agreements, the US should advocate that our trade partners must have minimum wages for workers in sectors that represent trade imbalances.
Theoretically, wages and benefits (etc.) should be related to costs of goods sold. Then, the true cost of items would be in-balance with what that same item made in America would cost.
US purchasing patterns invite products made in countries that don't pay minimum, let alone, living wages. Americans are too comfortable with $300 televisions, washers, dryers, and so on, that should cost double those low prices.
A note about wages and cost of goods sold: In many sectors, CEOs earn in a day, what US workers earn in a year. In the US, wages and costs of goods sold does not seem connected to costs of products. This issue needs to be resolved on our own shores as the proposal to export the idea goes overseas.
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The question that explains the tariffs is "How does the Trump family or the Trump business profit from from them?"
That some of the Trump businesses may see cost increases does not negate the question, though some will point to one as example he isn't profiting from it, since he is looking at the enterprise as a whole.
Trump famously changed his mind based on the last person spoken to. Trumps adamancy is only present to this degree when he will benefit. Case in point, the recent flip flops on gun control.
We never seem to be able to look at trade as a complex system. Free trade is good or free trade is bad. We don't look at which parts of the impact of trade are inevitable and which impacts we can soften or stave off.
There are billions of other people in the world willing to make things. Inevitable. There are resources located in places that make other parts of the world more likely to be the hub of manufacturing. Inevitable. There are markets for goods and services which have barely been penetrated, and markets which are near saturation. Inevitable.
But education policy, health care policy, tax policy, development, research and business investment policy are not inevitable.
We look for oversimplified, ham handed solutions to the inevitable, which just cannot work - you cannot hold back an ocean forever - and don't look at policy which would stimulate demand, better employment, development research into new arenas, reduction of employee cost by changing payroll cost and policies like taxes and healthcare. We don't look at the system, and the changes we have undergone globally since 1960. We don't look at history to understand our rise so that we can prevent our fall.
Is it good or bad that Cohn is no longer an advisor? It is neither. Because Cohn was no more willing to look at trade as a complex system than Trump is. They just both had oversimplified but different solutions.
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Who would buy an American washing machine or dishwasher?They are cheaply made and don't last compared to European models. The same with cars.until US manufacturers can produce the quality workmanship of say the Germans then they will always lag behind the rest of the world,trade deals or not.
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What? Those European appliances models are made in China -- like virtually all appliances these days. There are VERY high end exceptions, but those brands are for the 1%'ers. AND many of those parts are still made in China. Sorry but you are really wrong there.
You mention German cars -- are you aware of VW's diesel disaster that has almost ruined them? And many of the parts in any brand car on the planet? Made in China.
Corporations spend millions in branding and advertising to make sure consumers like yourself think that German cars are 100% German, etc. But it is just branding.
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Nope. That's simply not true. I prefer Japanese cars, but the current Ford Focus, based on technology that Ford pioneered in its Euro-spec cars, is perhaps the nicest small car I've driven.
Matilda rose in NY- you are a great patriot.
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The whole democratic world, including Sweden, should be isolating China. "Engagement policy" has been a complete and utter failure.
I don't know why Trump included allies in the tariffs. Maybe the story isn't over yet. Maybe there's some WTO-related legal reason we can't single out China, but we should.
Maybe, instead, the US should drop out of China and pursue bilateral or regional deals instead. That seems to be the trend in any case.
One of the many reasons Hillary lost (I voted for her) was because nobody believed her when she said she wouldn't back TPP (ironically, a much better deal than the WTO for labor, the environment, and intellectual property protections).
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Interesting move by President Trump, the tariff is just on two metals, both products we don’t buy from Russia or our Arab allies. I think he is doing this to please his base and not cause an economic catastrophe (or anger his buddy Putin.) If he were to add large tariffs to all home electronics I think that could cause major harm. And btw, I can’t stand Trump, it’s best to calm down and be thoughtful.
this is a clear signal that trump doesn't want or need the gop establishment anymore. he got his tax cuts and will now move on as a rogue freelancer bouncing back and forth between dems and gop depending upon the issue.
i would think that dems would be happy with this and the gop not so much as many of trump's instincts are more in line with dems with the glaring exception immigration policy.
So raising consumer prices is intended to MAGA. If Trump puts a tariff on all Chinese imports, Americans won't have Christmas. How will that play with his base?
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Trump doesn't care. Xmas comes after the next election, and he won't be running in 2020.
What Trump and many Republicans do not understand is that ill-conceived "America First" policies deliver "America Last" results.
1
Free Trade Or Unfree Trade
Aren't we long do for a series on the financial status and security of most Americans of all age categories- you think?
Let me guess. None of DJ Trump ties or Ivanka's clothing & accessory lines, all manufactured abroad, use steel or aluminum in their production.
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The sooner this economy tanks, the sooner we will be rid of Trump . . . I hope he puts back onto The Gold Standard this week.
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If this anything like DACA, the Wall, immigration, infrastructure there is little to fear because DJT will do nothing!
Whether you voted for DJT or not it is time for all Americans to come to the sober realization that the highest ranking official in this country is uneducated and has no basic understanding of political and economic principles!
He just doesn’t and it is beyond doubt!
We can argue policy positions all day, but DJT is knowingly walking into a crippling economic buzz saw, a blunder so obvious and so large that his chief economic adviser resigned within 24 hours.
Just flaunting tariffs is unconscionable because of the impact it has on markets and relationships with our existing trading partners.
This is the clear and present danger that DJT represents! Don’t say you weren’t warned.
All this and he has yet to impose the sanctions on Russia. Putin did not approve it I guess.
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Aside from the general foolishness of these tariffs, what's being overlooked is Trump's use of personal edict to implement his will on this issue, something he repeatedly disparaged President Obama of doing.
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Since Bush I, we have run $12 trillion in trade deficits, and, in the first decade in this century, we lost 55,000 factories and 6,000,000 manufacturing jobs.
In 2017, the U.S. ran a trade deficit in goods of almost $800 billion, $375 billion of that with China, a trade surplus that easily covered Xi Jinping’s ENTIRE defense budget. We are picking up the entire dime for them to threaten us.
But if Trump is against free trade, then, of course, it can only mean an anti-free trade stance is the position of a crackpot and his ignorant base, right? And how about Bernie Sanders? Ignorant, too?
SANDERS: I do not believe in unfettered free trade. I believe in fair trade which works for the middle class and working families, not just large multinational corporations. I was on the picket line in opposition to NAFTA. We heard people tell us how many jobs would be created. I didn't believe that for a second because I understood what the function of NAFTA, CAFTA, PNTR with China, and the TPP is, it's to say to American workers, hey, you are now competing against people in Vietnam who make 56 cents an hour minimum wage. This is an area where the secretary and I have disagreements
Source: MSNBC Democratic primary debate in New Hampshire , Feb 4, 2016
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Could it simply be that if Trump went after China (the largest trade abuser) and Russia (the worst election interferer) we could all sleep again? Including all of our friends and allies he keeps punching? Nah. Probably won't happen. Now that he and his comrades in congress have all switched sides.
I'd like the Times to report on WHY Trump is doing this. You must have seen the reports about Trump's friend Carl Icahn dumping 31 million dollars of steel stocks prior to Trump's announcement of the tariff.
2
Gary Cohn is a Democrat?! The same guy they trotted out there to peddle the recently enacted tax heist by the wealthy donor class, which will only serve to exacerbate wealth inequality in this country? Reversing wealth inequality is (or at least should be) the defining issue of the modern Democratic Party. If Gary Cohn identifies as a Democrat, I'm kind of at a loss for words...
A Goldman-Sachs Democrat, not a real one ...
Who knew that making America great again meant turning the clock back to pre-World War Two era views? Well congrats to this administration, the GOP, Putin, and all the populist movements across the world, they are certainly getting us there!
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What is wrong with the Trumps approach. He said this on numerous occasions during the campaign. We cannot continue the policy of all other nations looting America and American Jobs. This is not a party issue, Democrats and Republican should join this effort. We should be for fair trade. China has been looting of America for decades and it must be stopped. Unfortunately the anti-Trump media doesnt care. All they care is to bring down Trump. Pathetic.
There's a distinction to be made between FREE trade and FAIR trade. Trump is targeting free trade, affecting all trade partners. If his policy were in support of fair trade only certain countries, like China, would be affected. That's not the case.
What about the fella up north. You've been trading with him/her for more than two hundred years. Best friends?
These proposed tarrifs are akin to the Brits voting for BREXIT twice. Once is a disasterous anomaly. Twice and it’s shame on us. Beam me up.
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Trump has no actual opinion on tariffs. He doesn’t even understand how they work, and he really doesn’t care about who gets hurt, even if it’s his own constituency. Tariffs are just another bully tool for America’s most cowardly president in history. It makes him feel like a real man to threaten others, who he doesn’t feel will retaliate. He’s only interested in stirring up anger in his hate filled cult, and tariffs are one of their drugs of choice.
1
So, a bunch of creeps shouting "Jews will not replace us" was a-ok with him, but he draws the line at tariffs?????? I'm speechless.
1
Cohn is no “Democrat”—he’s a plutocrat.
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Cohn got his cut, now he has to get away as far and fast as possible before the FBI raids the joint (WH).
1
It took Tariffs for Cohn to leave the sinking Ship, where was he when Trump found good people in the Nazi Party & the Alt Right marchers, the rejection of
Global Warming, & so on.What the heck was this Democrat doing in this Republican Swamp.
1
It's really simple, but it require spine and courage from some Republicans in the Congress. Ok, so I'm asking a lot. First of all Paul Ryan, get a bill going in the House to take away tariffs from the President in ALL circumstances. Second, it's obvious to the vast majority of us that Trump is not only in way over his head, but can't cope with anything much except his balls on the golf course, we have the 25th Amendment, use it.
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Free trade would be nice, if it existed. But in the current situation, we play by the rules and our 'trading partners' don't.
In many of these countries, they:
1. Steal our intellectual property, and reverse-engineer our products
2. Keep phony corporate accounts
3. Have corporate CEOs who work closely with the government
4. Get cheap loans from government agencies
5. Cheat the workers on salary, but keep everybody employed by dumping goods
This does not just apply to China, either. Why should we be the only one to obey the rules? Trump is right, we are the patsies.
2
So therefore, slap tarffs on steel and aluminum that primarily hit our allies.
That there is some good thinkin', all right.
These tariffs are clearly aimed at China. They are the ones who are subsidizing their steel and aluminum industries, in order to provide jobs over there.
"while most Republican leaders in Washington maintain that lower barriers have helped keep the United States as the world’s leading economic powerhouse."
Oh my ! The US hasn't practiced free trade in ag goods for decades. The US sugar price is more than twice the world price .
Most Republican's are from farm States..
Final Note: Ag products are the ONLY category in which the US has a positive goods trade balance.
1
I hope that Trump is cluing into the fact that his strongest supporters in states like Ohio, Michigan and Wisconsin have pointed him in the wrong direction. He and the labour union leaders still haven't clued into the fact that equal trade between the two countries is of far grander value than their undustry. Some of his strongest supporters are from those states and during the election he promised to put tariffs on Canadian milk & eggs. Michigan and Wisconsin farmers were thrilled by the announcement. But he had only thought of them. Same situation in Washington State and British Columbia on the west coast. There has been a feud going on for thirty years regarding lumber. Trump got votes from those American industries and unions. But it will cost jobs and make things nastier between the two countries. The powerhouse province of Ontario itself borders SIX U.S. states. Without its cooperation, they'd likely see recession - depression? It would be a feud between the next-door neighbors and a show for the world.
2
Trump's past bankruptcies should have been the red flag in 2016.
For those who feel/believe/insist that the government can (and should) be run like a business, Trump is going the extra mile to poke holes the size of craters in that school of thought.
Or, to use a typical Trump superlative, "very bad example.....VERY BAD!"
2
Apologies. My previous post should read: corporate state.
1
Donald Trump inherited an economy showing the strongest corporate profits in 13 years, the lowest unemployment in years, and a stock market at all-time highs. One would think Trump would heed the age-old advice that when you're on a winning horse, don't get off it. Instead, Mr. Trump is carelessly pushing buttons and pulling levers that are almost surely going to send this winning horse tumbling. As with everything in Donald Trump's Presidency, he is creating chaos and mayhem, but this time it is with the most successful economy in the world.
12
This economy is strong because of Trump-if you were correct the stock market would negatively reflect Trump's repeal of the entire Obama economic policy-from trade deals-to globalism-to taxes-to repeal of suffocating regulations. The public is not stupid-they know the increase in job numbers, the return of companies investing in the US, the increase in corporate profits-and the unilateral decisions of some companies to give bonuses and increase salaries-are ALL due to TRUMP- and TRUMP-not Obama deserves the credit.
1
I should add that I believe the chaos you see in Trump (I do not know about "mayhem" which legally consists of willful and permanent crippling, mutilation, or disfigurement of any part of the body- usually biting off fingers or ears) is a psychological projection-I think a good part of the liberal establishment is in a state of denial and hysterical depression -you are in chaos- like a swarm of bees driven from their hive-and I believe that you paint Trump with the colors of your own mind-
1
This just in: Trump has no "fellow Republicans." It's the Trump Party. It's the Trump show. McConnell & Ryan can continue to cluck their tongues and wring their hands all they want. They aren't going to lift a finger to seriously cross him. They don't dare. This country has been held hostage to over a year of unimaginable horror while the GOP enablers looked the other way. I have zero interest in the discomfort level of a repulsive bootlicker like Orrin Hatch who recently called Trump "one of the best presidents I've served under." We are all trapped in a truck full of nitro glycerine speeding downhill with no brakes. History will not be kind to those who stood by until it all went BOOM. And it's going to.
11
Wait... we want Swedish immigrants but not their steel? That’s like wanting diamonds and rare earths from Africa, but not the immigrants.
Picky, picky.
2
We shouldn't compete against countries where workers are exploited and the environment is ruined. A Border Adjustment Tax, proposed by Paul Ryan (and dismissed as too complex by Trump) seems more worthy of debate than risking a trade war from arbitrary tariffs.
"Skeptics of free trade did not mourn the news of Mr. Cohn’s departure and suggested that Mr. Trump’s Republican critics like Mr. Ryan and Mr. Hatch were on the wrong side of history."
My God, will people never stop using this ridiculous line about being "on the wrong side of history"? In Popper's "Open Society," there's a chapter entitled "The Moral Theory of Historicism" that everyone, not just people who use this absurd phrase, should read. When does the future begin, sixty minutes from now? Sixty years? There is a danger lying behind this phrase that few see. ...
Trump missed the part about comparative advantage when he studied at Wharton. It's true the downsides of globalist free trade have been overlooked by too many for too long, but trying to unwind the present economic system is a recipe for disaster, and ultimately that's his objective. Is it possible we could've used the threat and even the implementation of this sort of thing to coerce China? Yes, but Trump is simply an out-and-out protectionist.
You cannot protect the jobs of today without giving up the jobs of tomorrow. Proponents of protectionism never seem to be put off their convictions by the failure of their ideas. If Trump had his way, if his line of thinking prevailed, the absence of competition would push down innovation; living standards would fall globally; we'd all be less secure. We can't pine for an imagined past, or at least we shouldn't. Rather, we should prepare people to face the real future.
1
"Trump missed the part about comparative advantage when he studied at Wharton."
That's because he transferred his credits for this course from Trump U.
Isn't it obvious that you reward countries that do not 'dump' goods in the US and punish those that do - the carrot and the stick. The president can't do anything that takes some thought because he's a pure reactionary. If he continues this way the next president will inherit a huge mess and a huge recession.
Trump lost almost a billion in Atlantic City, and went bankrupt 3 or more times. What else do we need to know.
14
All this is numbing. The president is basically crazy. And corrupt. When we look at what's happened so far in this administration it beggars belief. Russian 'meddling.' Trump's daughter & son-in-law attempting to leverage the presidency for personal gain. Trump himself shamelessly marketing the presidency for personal gain. Trump spending 1/4 of his time sealed off at his golf properties. Numerous people in White House jobs who have no duties to perform. Former campaign chairman indicted. Former National Security Advisor - the agent of a foreign government - plead to a felony & now a cooperating witness in a large federal investigation. An attorney general Trump despises & humiliates. Trump's retaliatory firing of the F.B.I. director. The number of public lies Kellyanne Conway has told in an official capacity. Sarah Huckabee Sanders also. Trump also. The payoff to porn star Stormy Daniels, who is now suing Trump. A book which paints Trump as nuts, incompetent, unstable & uninterested in his job. The parade of administration officials who have quit or been fired. Trump's attempt to destroy the State Department. Trump's attempt to destroy the Justice Department. Trump falsely accusing President Obama & Secretary Clinton of crimes - repeatedly.
I always assumed we'd bounce back from Trump in the next administration. Now I don't know. This country seems irrevocably changed for the worse - much worse - in just 13 months.
I don't recognize us anymore.
10
The reason you do not recognize our country is that Trump has changed it! You remember a country in decline. From Bush 1 to Obama, our Country lost more than 55,000 factories, 6,000,000 manufacturing jobs and accumulated Trade Deficits of more than 12 Trillion Dollars. Last year we had a Trade Deficit of almost 800 Billion Dollars. Bad Policies & Leadership- On top of this are Trump's success in foreign policy-notably NK-
So....I (and I think millions of my fellow citizens) are happy we do not resemble the failed past.
1
Goods are sticky; gigs aren't. Gig workers struggle to produce the scale necessary to demand sticky pricing. Adam Smith: "It's pin factory, not Pinterest."
WTO is a talk shop. Trade is a labor-sponsored bailout of the cooperate state. Navarro is right guy for the time. Trump is changing the world; and at this point anything would be an improvement.
Apologies, should read: corporate welfare state
I find it baffling that anyone would seriously consider trade proposals from a six time bankrupt miscreant whose only contribution to America is using foreign steel in his projects because of their lower cost. He helped close steel mills, clothing factories and none of his "projects" use coal.
Folks, you were suckered. Trump isn't a real American; he is too pink.
12
Lori Wallach is a very confused person. As she invents a divide between those who are against interaction with a global economy, and an imagined group of evildoers who would outsource American jobs and lower wages, the unemployment rate here is now at its structurally low level. That means, to grow the economy further, we'd have to bring more people into the country, thus putting downward pressure on American wages. Furthermore, automation is a major factor in industrialization.
And she is unaware that a trade war would elevate prices here, which would consume any gain workers would make from Trump's tariffs. And as the stock market tanks, more would lose.
Trump is a dangerous demagogue with his language. Speaking puerilely, Trump states that other countries are riding "roughshod" over the United States. There is no meaning to that phrase other than to rile his poorly thinking followers in our heartland.
Not only could Trump's actions cause a trade war, Trump's inability to communicate makes it impossible to develop effective trade policy.
We need to think well, not satisfy the emotional rants of demagogic pundits.
10
Peter Baker: Would really appreciate a good article on trade that delineates the dollars-and-cents side of the issue. This would be most helpful in evaluating the true importance of free trade versus the tariffed position the President is following. Specifically, what are some of the tariff percentages on our exported products and who is charging us the most/least and in reverse what are we charging some countries?
3
So, a lesson in tariffs: when England "owned" the machine made lace trade - their government passed laws with restrictive tariffs and also forbade the export of the lace making equipment.
Two men chose to break the law, smuggling the machines to France. Today, France retains its high end, luxury ace making business - and England? Well, suffice it to say that the lace on the Duchess of Cambridge's wedding gown was made in France (possibly hand embroidered in England, i do not know).
England's atempt to squash free trade in the lace making industry was an epic fail - which hurt both the workers and the manufaturs and ultimately closed down an industry.
Our politicians need to wise up to the realities of the global economy, but they have demonstrated that they are incapable of this. Once they figure out how it will line their pockets, they'll smarten up!
Kudos to Mr. Cohn for taking a stand.
6
Trump is playing to the 30% of the country who would hand him the gun to shoot somebody on. 5th avenue. Nothing intelligent or rational about this tariff thing but "trade war" sounded good to his no nothing base. He's president for 1/3 of America and that's it!
10
This is just another example what he’s been doing since day one.
Pandering to his minority base without consideration of the outcome for the majority.
10
As a middle class resident of California, it is hard for me to see what is NOT to like about trade barriers. If the GOP congressional leadership, Goldman Sachs, and Wall Street don't like them, then I do. Most American workers have just been bashed over the head with the "tax cuts" that these same groups muscled through. This tax reform transfers enormous amounts of money to the very wealthy, and our multinational corporations. It is time they got kicked in the rear in return. I just don't see how protecting our industries, and our workers is going to hurt working Americans worse than the GOP has already hurt us.
2
JMC,
The answer to that is we're an importing AND exporting nation, and the fact that other countries will increase tariffs too, thus making products that we sell abroad less competitive. Add to that, as a nation we're darn close to full employment so it's not as if the industries that DT is trying to boost with these tariffs have a lot growth potential. Historically tariffs have a checkered past - sort of like treating syphilus with mercury. They may help a specific industry for a short period of time but the cure is worse than the disease.
That said, you're right about the GOP. They don't have, and haven't had for a long time, the interests of the working class in mind.
3
Let me explain. A trade war means you will pay more next year for that new tv set at Wallmart. Less money in your wallet.
If Cohn was a Democrat then what am I? I could not disagree more with the tax cuts on which he led the charge from the White House. In truth, he is just another rich guy from Wall St. who interest is the same as Trumps, that being
greed at the expense of the country. Goodby and good riddance.
23
I wonder how many people here calling for the end of free trade are willing and will be happy to pay more for everything? If it makes the country I live in stronger, then I'm okay paying more, but in my personal experience I've found most Americans are always looking to save a buck any way they can.
11
Yep. These are the guys and gals who go off about imports and how China's cheating us, then it's off to Walmart and PriceCo to shop.
7
Perhaps the following background economic statistics will help in grounding this debate.
1) In 2017, one measure of US GDP for 2017 is: $19.36 trillion. For 2017, US exports were $2.33 tr; while imports were $2.90 tr. Thus, (Exports - Imports), or (X - M), leaves the US trade imbalance at -$0.57 tr. So, in 2017, trade comprised (X + M), or [($2.33 tr + $2.90 tr)/$19.36 tr) x 100] = ($5.23 tr/$19.36 tr) x 100 = 27.0 % of the total US economy.
2) In 2017, for the global economy as a whole, total exports of $17 tr were balanced by total imports of $17 tr in about a $127 tr global economy. Thus, for 2017, trade comprised [($34 tr/$127 tr) x 100] = 26.8% of the global economy.
3) As a reference point for comparison, in 1929, US GDP was about $105 billion with international trade at about $5.3 billion, or 5% of US GDP.
The Great Depression is often cited by economists for the contributions of US "protectionist" trade policies, and restrictive monetary policies by the Fed, which together acted to, supposedly deepen its intensity and lengthen its duration. The current greater role played by international trade in both US and global GDPs, as compared to the Great Depression era, is noteworthy.
[JJL W 03/07/2018 11:20 a.m. Greenville NC]
3
Thank goodness another moderate has left. Now we can let Trump really trash the joint.
Trump: Disruption with No Actual Plan--
Vote 2018!
14
Time to put real limits on presidential power. The GOP freaked out over presidential power when President Obama signed the DACA executive order. It seems that was a trivial use of presidential power when compared to destruction of the world economy by one scrawled signature.
The GOP needs to WAKE UP (I say again, WAKE UP!) and do something to stop the insanity of this man. No one knew what he was going to do with trade, and after watching the video of the meeting, I don't think trump knew what the tariff percentages were going to be until it spewed out of his mouth.
A congenital liar and charlatan is making decisions based on his "gut." He's destroying our country. GOP? HEY GOP!!! WAKE UP!
12
I wish the GOP would wake up, but I suspect that each of them has been threatened by Putin to either support the puppet aka Donald, or the dirt will get out.
Free trade must also be fair trade.
At what point does the US start acting in our own interest, and stop allowing the USA to be taken advantage of by unscrupulous players?
China is said to engage in industrial espionage of US companies on a massive scale, and yet has had special trading status reserved for developing countries, even while maintaining over $200 billion trading deficits with the US year over year.
Russia has been in virtually open cold warfare against the US and the world, annexing land from and threatening their neighbors, sheltering cyber criminals, and cyber manipulating democratic elections through a psych ops warfare unit internet troll farm - only made possible because we continue to give them the benefit of the doubt about not being essentially a criminal enterprise under the guise of a state.
I'm no fan of Trump, but I think he's basically right on this issue. US trade policy does not reflect the public interest, not of the US, and not of the international community.
2
These tariffs don't hit China much, and they hit Russia not at all. Mostly, they hit Canada, Mexico, and the EU.
You know...the guys on our side. Weird, huh?
3
@Robert - Yeah, good point on targeting who, where and when. I guess maybe you have to count inaugural or campaign contributions to see which 'squeaky wheel got the grease'.
Still though, what about China and Russia? They don't seem to respond to anything except economic sanctions, and/or actual force on the ground. Why treat those countries like other countries acting in good faith, just because we wish they were.
Here's the problem: the "average working people" voters who Trump claims to speak for benefit enormously from trade with China, Mexico, India and other "emerging economies". Why? Because they have access to inexpensive goods through places like Wal-Mart, Target, and other big-box stores. I don't know what percentage of those goods are produced overseas, but I can guarantee you it's huge. People want things made in the USA? Fine, but they're going to pay a lot more for them.
11
I agree with you. The problem is - and I don't have the answer - there is absolutely no one in our country that isn't replaceable with a low-cost immigrant or overseas plant. Computer programmers? Check. H-1B visas have solved that. Foreign medical school grads could take all physician and physician extender jobs for much less. Teachers, construction workers, manufacturing, you name it. If you're used to $6 a day in Guatemala, there aren't many jobs that you wouldn't pass up to come to America. So now that we've agreed that every single U.S. job could be done by someone else more cheaply, who's got money to buy anything at all at Wal-Mart.
As with so many other fields a President must comprehend to govern, Trump has no understanding of economics or foreign affairs. He makes no effort to study and listen to experts. And he doesn't care about relying on facts and analysis in decision-making--he just relies on the feelings in his gut and on his biases. Not just sad but PATHETIC--and a threat to our nation and peace in the world.
11
In these pages and elsewhere I read supporters of Bernie Sanders decrying Trump’s positions on trade, unaware that those of the two men are virtually identical.
Unbeknownst to him, tariffs on steel and aluminum may be the most progressive, most environmental stands Trump has taken. Yes, they will bring back American jobs, but more importantly they will reduce consumption. Instead of rushing out to replace a product which has broken, higher prices on consumables may force consumers to consider fixing it. Americans will help to reduce global carbon emissions not by installing solar panels on their roofs, but by restoring lawn furniture, or repurposing storage bins.
So-called “free trade,” like “free markets,” is anything but free. The price of runaway consumption, exacted collectively and globally, is one we ignore at our peril.
5
I haven't seen a single mention of Bernie but I agree their positions are very similar however they've been arrived at very differently.
Jennifer, call it “coming full circle” - where populism meets socialism. However each arrived, let’s celebrate that they now share common ground - an accomplishment in itself.
Orrin Hatch's debate is not with Trump, it's with the Republican base. It may be that free trade benefits average Americans, but they don't believe it. Thomas Frank first wondered, in "What's the matter with Kansas", why middle class voters opted for Republicans, when GOP economic policies clearly hurt them. Many of us assumed that Democrats would come up with economic policies that would appeal to these voters, but they never did. Now along comes con-man Trump with his faux-populism, and the naive Republican base goes gaga. Trump's policies won't help them, but at least he acknowledged their problems. The message is clear for Hatch, Ryan, McConnell - your base despises you.
7
I found on-air comments by Leo Gerard, head of the union that represents both American and Canadian steelworkers, more insightful than what I've read. Mr. Gerard pointed out that a) American (and Canadian) steel mills are among the most productive in the world, as measured by the minimal number of labor hours it takes to make a ton of steel; b) that with their pollution controls, they are among the cleanest in the world; and c) that China, with its gross annual overproduction of over 1 billion tons of steel (more than half of which it exports) from state-subsidized plants, has reduced American/Canadian annual production from 125 million tons to 85 million tons. China's export of a relatively small share of its production to the US has taken over one-third of the much smaller US production.
China's lower production costs are due to state subsidies, lower worker health and safety standards, and minimal pollution standards. Tariffs against Chinese steel are appropriate; tariffs against other countries' steel are not. I believe that Trump declared global rather than China-specific tariffs because it helped sate his sense of grievance over imports and because it brought attention to his narcissistic self.
No one has stated a repeated pattern. Large, 19th-century American industries boomed, then suffered in the mid and late 20th century as their owners disinvested in their physical plant and workers to skim excess profits and other countries built more efficient mills.
5
So Donald Trump and Ohio's liberal senator - Sherrod Brown - are on the same page when it comes to steel and aluminum tariffs. Further proof that Trump is not a Republican even if he captured the Republican nomination.
Opposition to free trade may be one of Trump's few convictions and one where he has some Democratic support. Unfortunately, just because some Democrats support him doesn't mean he's right. He's completely wrong, once again.
1
"Until Mr. Trump’s signature tax cut plan was passed in December, that schism was largely papered over in the name of unity as Republicans focused on lowering rates for corporations, wealthy Americans AND MIDDLE CLASS FAMILIES." (emphasis added)
where did Peter Baker come up with that last part. The Republicans are focused on aiding the rich, period. The tax cuts for the rich bill is evidence of that.
2
Like so much with the current administration, I find myself totally at odds with what is being done, while at the same time, totally understanding why these things are happening. There is no difference between trade tariffs, abortion or guns. They are all wedge issues and are simply weapons in the war for the hearts and minds of the populace. However, it is beyond sad what is happening both here and in many other countries lately.
The USA, The Philippines, Russia, Turkey, Poland, Hungary - all have tacked hard right. The UK has stayed close to center, as have France and much of Scandinavia, but make no bones about it, the winds of change are still picking up strength. It's like the cone of a hurricane; we can see it's coming, we're just not sure where it's going to end up and how much damage we're going to suffer.
Most people simply don't care much about politics, until it affects them personally, then they object. And how they are objecting right now! Trump's base may only be 30% or so, but there is probably another 30% that is quietly gratified that the status quo is being upset.
What most people are failing to recognize is that the elites are both Republican and Democrat. The populist movement is a pox on both their houses.
At first I thought the tariffs were an illusion to sway voters in the special House race in Pennsylvania. But it may be more than that. It may be about intentionally weakening both the US and EU economies and facilitating an opening for others, like Russia, to step in.
4
Not exactly out of the range of possibilities given our current situation.
It costs to run the world. It is impossible to believe that the most powerful nation on earth cannot and does not negotiate valuable trade deals, as Mr. Trump fatuously asserts. It is easier to believe that, in the past, this nation has used disadvantageous trade balances, to the extent that they exist, as a lever and a price to achieve national security goals and stability. Now of course Mr. Trump is throwing away the advantages of trade concessions with no thought of how he’ll pay for their replacement costs in other domains — where their price will be paid.
2
The tariffs are all about Trump's cronies knowing about this in advance profiting from selling short stocks that would be affected, aka "insider trading."
Economics on either side of the question are immaterial.
3
Well, I guess there's a cost to our policy of character assassination against everyone who works in the white house. We have some culpability in running off everyone who was a voice of sanity.
The idea that the “average guy” Trump voter understands the consequences of tariffs is doubtful. The thought that the nihilist Steve Bannon should have any voice in the issue is frightening.
2
Interesting that Trump's racially tinged comments after Charlottesville, his outrageous slanders against any and all, and his dangerous, erratic, juvenile behavior wasn't enough to dislodge Cohen.
Nope, it was a disagreement over trade and tariffs. Golly, what courage.
2
@Nick Metrowsky
re: when this Trump mess become a kitchen table and Man Street issue (which it quickly will), they will pay dearly at the polls.
Don't be so sure about that. Surreptitiously Russian meddling in our election process is already being shoved into high gear for 2018, and trump's complicity in it will become even more brazen, concerted and entrenched. The man is power crazed and has no scruples about pulling out all stops to keep it that way. The GOP will continue to use its wide elective powers to aggressively advance their voter suppression scheming in blatant gerrymandering and tampering with voting rights and mechanisms. At this very moment they are expanding the "Interstate Crosscheck" that has already illegally and unconstitutionally denied over 1 million poor, minority, and inner city people their right to vote.
1
Our trade treaties are a mess. Apparently the U.S. import duty on European cars is 2.5% (but on trucks it is 25%), while the EU import duty on American cars is 10%?
Reciprocity seems fair and less prone to interest group lobbying for special exemptions and favors (which are obtained in international trade negotiations by trading away the interests of non-favored domestic interest groups).
1
The US could start with making cars Europeans want.
Gary Cohn was a long-time donor to Democrats before he flipped on a dime in 2009 and exclusively supported Republicans.
The sudden switch of support coincided with the passage of the Dodd-Frank Act, a sweeping set of reforms for the financial industry intended to make banks safer after the Bush-Cheney Wall St.-induced Great Depression.
Prior to 2009, Cohn, the former Goldman Sachs president donated for more than a decade to Democratic candidates and groups.
The Dodd-Frank regulation was introduced in June 2009. It curtailed the ability of large banks like Goldman to make riskier investments and imposed significant restrictions on those banks.
Starting in December 2009, when revised legislation surfaced in Senate and House committees, Cohn's donations shifted significantly to the GOP pour money into Republican efforts.
Among the new GOP recipients included former House Speaker Rep. Eric Cantor in 2010 and 2013, former Sen. Scott Brown in 2011, Sen. Marco Rubio in 2011, Senate Majority Leader Mitch McConnell in 2014, and Sen. Tom Cotton in 2015.
Nearly all of Cohn's donations to political action committees also switched parties — including $5,000 to Every Republican is Crucial in 2012, $5,000 to the Freedom Fund in 2012, $30,800 to the National Republican Senatorial Committee in 2012, and $33,400 to the National Republican Congressional Committe in 2015.
http://www.businessinsider.com/gary-cohn-donations-dodd-frank-2017-4
Gary Cohn: Greed Over People
What a great guy.
91
Mr. Cohn did the right thing, get out while the getting was good.
Trump, and the Republicans, now own the economy and the world wide consequences of their actions. The tax cuts and budget cuts were already enough to create uncertainty. Then, throw in tariffs, breaking trade treaties, creating a trade war which will have no winners, and add in the possibility of "stagflation"; or worse.
The GOP own this alight. And, when this Trump mess become a kitchen table and Man Street issue (which it quickly will), they will pay dearly at the polls.
FYI, I talked with a former colleague, and asked him about how much of a tax cut he received. He didn't; he actually owes more and needs to increase his withholding exemptions. I also asked about wage hike, about 3%, he said; just enough to cover inflation. I suspect, there are a lot of people in this position, and will not know it until they file taxes in 2019; a ticking time bomb.
Since January Trump's actions, and words, has caused the world wide markets, to drop, and with it people's 401ks and IRAs. Creating uncertainty fro consumers, invest ors and businesses. If the Fed was worried about inflation, wage growth and full employment; Trump may put a halt to all of it. If Congress does not act, and sanity prevails, we will be in a recession by year's end.
14
This is WAY past "party" politics, Mr. Metrowsky. The Con Don and his Robber Baron brethren are TRYING to disrupt the world. WE must not let them.
Yes, the next elections are very important but OUR actions until we put Socially Responsible people in place are more important if we want to prevent WW3.
3
OUR United States of America - and the world - are in the most tenuous situation since Hitler started his campaign to try to destroy it. The problem is there is no "savior" because Wall Street and the International Mafia Top 1% Global Financial Elite Robber Baron/radical religion Good Old Boys Cabal is behind it.
The Con Don is their talking head in OUR white house. He does not speak for the great majority of Americans.
Not everyone who works on Wall Street and in other markets are Robber Barons. Some actually have a social conscience and do not want to see
WW3. Some actually do not want HIStory of death-destruction-rape-pillage-plunder repeated and civilizations/governments around the world obliterated. They must speak up and act right now to prevent it.
WE THE PEOPLE are the only ones who can/will stop it in every non-violent way possible.
NOW is the time. There may not be another time.
8
Cohn was OK with racism, nazism, anti-semitism. But trade issues were too much for him. His reputation is shattered, and rightfully so.
19
Lucy : what reputation? as a Goldman Sachs leech?
Cohn's a corporate "Democrat," not a real one.
In a related article, NY Times columnist David Leonhardt makes the case that Mr. Cohn's reputation is diminished as the result of his service to President Trump rather than to the American people who paid Mr. Cohn's salary. Ho, Ho, Ho. An alternate view is that Mr. Cohn can go out with his head held high because he delivered a mammoth tax cut for his industry so his inside-the-government work for them is done and now Mr. Cohn will be welcomed back and honored by that same industry as a "rainmaker."
35
It is pretty rich that Mr.Ryan and Mr.McConnell only find their voices when exports from their states might suffer in a trade war.This gets their attention when DACA, health care and gun control do not.We now know that Harley Davidson and Bourbon are what animate them.They have a million excuses for other outrages in the Trump administration.
55
The EU is now proposing a tariff on peanut butter.
1
No one who enables Trump is an "important voice." They are all going down in history as unpatriotic, self-serving accessories to ongoing treason.
34
I wonder if it has occurred to the GOP that the damage to consumers and small businesses and job losses with hit just before the midterm elections in time to for the voters to say thank you for supporting the Mr. Trump's trade war which is raising prices on costing American jobs. The GOP can stop this with the Dems or you all can hold hands, close your eyrs and jump off the cliff together. If so take my advice today-- sell short, move and do not tell anyone where you live. .
3
We are way past any rational Tipping Point now.
The changes will be catastrophic to our Democracy as the Republicans put off the inevitable: The Great Reckoning.
4
Ironically the early 1990's The Great Reckoning predicted the great reckoning was nigh decades ago - and its only consistency was that it was and is consistently wrong.
Oh no! The doyen of free-trade economics is gone. What to do?
I think that I'm going to brave the drizzle and go to work so I can make back the money I'll be losing.
2
Do remember Trump saying, "I am for free trade, but fair trade."? Good bye people letting our country go to pot. Trump is right. Time for Americans to take care of our own. I am tired of cheap roads, cheap homes and cheap people. Let's return to our standard. Not lower ourselves to our competition.
3
Is it free trade when we allow another country's product into our market without any tariff or other fee when that country does impose a tariff or other fee on our product? Free trade is supposed to mean no tariffs imposed by either the exporting or importing country. That is free trade that is also fair trade. We need to look at the trade deals to see that they are fair trade as well as free trade.
3
I'm guessing you don't the size on any tariff imposed by us or on us. Your hero in the White House certainly doesn't know. The EU tariff on automobiles is quite low, ours is even lower but our tariff on pick-up trucks is quite a bit higher while the EU imposes the same low tariff as on automobiles. Unfair? No, not really.
The basic notion that our political & business leaders have been allowing other nations to cheat us at will is utter nonsense. China is the only real exception and their case is unusual: a country very slowly moving from a command economy to a market economy. We wanted to encourage this change. They have been playing us, keeping their currency artificially low, erecting many non-tariff barriers, subsidizing exports. The continued power of the Chinese government over the economy has enabled this.
But Trump's response is to impose tariffs which will, for example, weigh much heavier on Canada than on Mexico while falsely asserting that Canada is running a surplus in their trade with us. They aren't, but Trump & his supporters have decided that truth doesn't matter. It does.
So you are in agreement that research should be done first? Then you disagree with Trump declaring steel tariffs without doing any research? In that case I agree with you.
1
I did not realize how much Progressives embraced free trade!
3
Most progressives are strongly against free trade & globalization. Most liberals are supportive of both, albeit with some concerns. We think that free trade may well benefit the economy as a whole while causing acute pain in certain sectors and we'd like to find a way to help those sectors.
One interesting point about the steel tariff is that no one is talking about its effect on Pittsburgh, formerly known as Steeltown. Because they re-invented themselves and are no longer dependent on steel. It would be quite interesting to know more about how they did that.
1
While the tax cut mainly benefits corporations, wealthy Americans and upper middle-class families, the tariff will help some American workers and it is not good for big corporations. It will boil down to which side you are on.
1
The credible claim has been made that these tariffs, by themselves, before any retaliation, will hurt more American workers than it will help. It will, of course, help corporations of whatever size, which produce steel & aluminum, while hurting corporations, of whatever size, which use steel & aluminum.
So the claim I alluded to above is hardly rocket science. Are there more workers who have jobs where they use steel or aluminum than there are workers who produce steel & aluminum? Apparently the answer is yes. Yet you seem to be completely unaware of this argument. I wonder why that is.
1
Trump campaigned for this and Cohn knew that when he took the job. We, the people, did not elect Cohn. I think we elected Trump because we wanted a protectionist policy in trade and immigration-and Trump is delivering on his promise-unlike most politicians. Globalism-hive mentality-has gone too far-it threatens diversity-by fogging and inhibiting differentiated consciousness. We need fences-and we need a resurgence of individualism. We are not simply the sum of our parts, a common undifferentiated muck. Each of us is unique-our fingerprints are our fences.
2
We the people didn't elect Trump, the Electoral College did. The people clearly chose the other one.
1
"we need a resurgence of individualism." Utterly wrong, rampant individualism is ruining our country.
Also, we, the people did not elect Trump, he got 46% of the vote. And no, millions of folks who are ineligible to vote did not vote. Early on the claim was made that there was solid evidence of this supposed illegal voting and it was going to be revealed. We're still waiting, so far nothing, absolutely, completely nothing. Oh right, it was revealed that most people when they move to a new state forget to tell their old state to take them off the rolls. Big whoop!
At Davos, (Trump was a big hit largely due to Cohn's influence) European leaders were willing to look past Trump's rhetoric as long as it didn't seep into policy.
Well, now it's seeped into policy. Now what?
Trump- "America first does not mean America alone."
(It sure feels like it.)
Another myopic move to satisfy his ever shrinking base.
After being reminded daily of the "Trump Bump" we've gone 37 days without a single tweet mentioning the stock market. I wonder why?
America first doesn't mean me, me, me, me, me.
Donald John Trump a domestic and international menace.
15
You should add "humanitarian" to that list.
Trump continues his mean; selfish; arrogant presidency. Everyone thinks these outside advisers can moderate Trump; WRONG.Trump has done exactly as he planned;enrich himself and his friends while thumbing his nose at everyone else.These outside advisers have little effect on Trump;their reputations get destroyed and they get tossed aside.My prediction;advisers will come and go; Trump will continue on his path to Dictatorship. Getting Trump out of office is the only solution. Ray Sipe
8
America has a trade deficit in goods because it is an expensive jurisdiction in which to manufacture, so goods are sourced elsewhere, often in plants established abroad by American companies trying to remain competitive. The other option for these companies is to stay in America but automate, which reduces costs by reducing labor inputs. So in either case American consumers benefit form lower prices and US employment is reduced.
Theoretically one might think American tariffs on imported goods might level the playing field. The questions are, (i) what level of tariffs will be required?,(ii) what will be the effect on employment in the US? - will there be an increase in highly automated production and not a great increase in employment? (iii) what effect on consumer prices? - will the standard of living decline? will the decline be worth it relative to the gain in employment? (iv) How will other countries react? Will there be retaliation, will the decline in US exports exceed the decline in US imports?, (vi) who will be helped, who will be hurt?
The answer is, no-one knows form sure, but tariffs do not usually work. There will be unintended consequences. It is not clear Trump even wants tariffs, he just uses them as a lever in trade negotiations.
2
Trump is just talking and after the PA election, the tariff talk will no longer exist. Period.
7
Reality check when person is elected or appointed to office sworn to uphold in good faith that office they serve. Party they belong to who got them office isnt relitive to office they serve . Good cop bad cop is nothng but circus to amuse them selves.
The silver lining in this mess aka The Trump Administrations Economic Policy is that it will alarm the big money donors to the republican party. They view this as President Trump "going rogue" and they will shut off the money tap to the republican party accordingly. You already see this in the signs from the "Republican Leadership" who while silent on Russia and all of the daily scandals till now, are suddently quite vociferous in their condemning Trade Tariffs. Hopefully this will hasten the exit of the republicans from power during the midterms. Keep your fingers crossed!
3
You mean the same donors who were against him before they were with him? I don't think we can count on them to right the ship, especially considering that was never their goal to begin with. They're for whatever benefits them and makes them richer and with Trump, who knows what tomorrow or even the next hour will bring?
So now acknowledge that Gary Cohn is a Democrat after the biggest tax cuts in history on the wealthiest Americans and probably the most radical implementation of tax policy since FDR. Its safe to say the so called American Right are protecting an idea the least of which is the American Dream, while they are of course protecting their own and Wall-street. Trumps right about protecting Americans, the only problem is that trickle down supply side economics are driving middle class Americans deeper in debt with no where to go but the grave.
3
Gary Cohn was after all able to preside over the successful effort to return deregulation to the largest of banks:
https://twitter.com/SenSanders/status/971130575053578240
Bernie Sanders @SenSanders
I hear from a lot of people in Vermont and around the country. I have not heard one person say, "Bernie, we have got to deregulate 25 of the largest banks in this country with cumulative assets of $3.5 trillion." Yet that is what Congress is debating doing today.
1:09 PM - 6 Mar 2018
18
There's an argument to be made for "fair trade" rather than our current race to the bottom style of "free trade", but Trump's not the guy to make it.
Furthermore, the problem isn't one of trade between advanced industrial allies but rather trade between advanced industrial nations and countries where workers are paid like serfs while their oligarchs launder their billions in NY, London, and Canadian real estate.
This is a complicated problem that is not going away any time soon - and will have to be addressed.
The best means for addressing it in the here and now in America would be to require the "winners" in globalization to pay a significantly higher rate of personal taxation in an effort to swell national coffers, so that nation states can then use those funds to redeploy abandoned or underutilized workers wherever and whenever the need arises (like infrastructure projects, etc.)
In contrast, Cohn and Trump just spearheaded one of the biggest giveaway of tax dollars to oligarchs and corporations in our nation's history.
If there can be two villains in the same story, that's what you have here. If Cohn is a Democrat, he's the kind who needs to leave the party immediately - inasmuch as he offers no solutions to the great economic challenge of our time.
We urgently require a capitalism / globalism that lifts all boats - and neither Trump nor Cohn is the guy who is going to get us there.
186
No form of capitalism will "lift all boats". When you talk about raising taxes on the super-rich to redistribute the money to the less fortunate, you are talking about democratic socialism. I know "socialism" is a dirty word in America and that many Americans think Canada is Communist country because we have socialized medicine. Not true. There's a very big difference. Capitalism has no inherent morality and will never bring about a just society. Not that there aren't a lot of things about Canada that need improvement, but you really have to do something about your president. He's embarrassing. As a country, you're better then that.
1
Great comment! Thanks Matt!
Matt,
Agree on Fair Trade but a step further. Years ago Japanese and some German auto makers (BMW, Mercedes) were "encouraged" to make/assemble cars in the US. They have produced high quality produced at competitive cost. The concept is simple - if you want to sell here, make at least 75% of the product here. Samsung is building a factory here - so should LG. If LG chooses not to do, then GE, Whirlpool, Frigidaire and soon Samsung can fill the void as L:G disdapprears. So with Audi and Porsche. Market access is not "free" but "fair".
Now Trump can start taking credit for the stock market.
7
Trump says he likes "conflict". It drives him. Not conflict --outright mayhem and he's delusional to think he's in control. But his WWE background is coming to forefront though that was controlled mayhem. This is not.......
10
"Mr. Cohn, a former Goldman Sachs banker,..."
Who says Cohn's departure is bad news for the country?
6
I am sure DJT will turn over another rock and find a no nothing low life to do his bidding. If Cohn was a stabilizing factor it was really hard to appreciate. A party driven by self interest instead of serving the country can expect nothing less than what we are witnessing now.
12
One would think the sky is falling. Every little thing that happens the Democrats and the press spin into a catastrophe. It's almost comical. But one has to wonder was there ever a time when the opposition was loyal and the press, responsible--?
4
This is beyond the spinning of propaganda or the employ of partisanship.
1
Gee, the NYT reports the facts. Commentator ed thinks that they instead are irresponsible and report that the sky is falling. I have searched the article and see no reference to either sky or falling.
It is ed who is being irresponsible.
4
Trump has no idea what he is doing and eventually he is going to really screw up ......... some things like his tax plan will take years to see the harm .... and then the economy will tank as it did with Bush and a Democrat will need to step in and right the ship again, like Obama did.....
3
It is not a surprise that Cohn quit NOW. What is surprising is, what took him so long?
He is a Democrat and does not belong in a Republican administration.
If he is such a pro-trade proponent, how did he stomach the close to first thing Trump signed on taking office: pull out of TPP?
Opposition to Tariffs among Republicans is not so much a matter of fear of trade wars but of an aversion to RAISING TAXES (tariffs are taxes).
Bye bye, David. Hello, Larry Kudlow.
5
Kudlow would fit in with the low intelligence Trump seems to prefer...
"He is a Democrat and does not belong in a Republican administration".
Since when has either party had a monopoly on greed? Goldman Sachs epitomizes two long-standing patterns in the financial services industry: A revolving door which takes top execs into government to make connections, then out again to make money, and an agnostic, indifferent approach to whether individuals are Democratic or Republican. It and other firms, while they have contributed more to Republicans, have contributed heavily to both.
The real problem is the size and influence of the financial services industry (banking, stocks, bonds, insurance). Over the last 30 years, it has roughly tripled its share of annual American corporate profits, from 10% to 30%. It has such sucked up a disproportionate share of America's brightest college graduates.
As a former economics major, I always wondered what was the difference between economics and finance. I finally figured out what finance was: The process of matching people who had money to invest with people who needed money to create something that would generate profits. For that process to such up such a large share of American corporate profit, diverting it from better uses like investing in facilities and people, is much like our current health care system, where way too large a share of the money spent is diverted to uses that do not improve health (e.g. administration, bean-counting, drug marketing).
As rich as we are, we can't err this way forever.
1
He may be a Democrat on paper, but in his heart he acts like a Republican bent on lining his own greedy pockets while accepting Nazis as good people. Cohn is a sham just like the GOP is.
1
Actually, there is a middle ground here, somewhere between Fair Trade and Balanced Trade. I think that the NYT, Wall Street and Wall Street puppets in Congress have generally been tone deaf to the impacts of total Free Trade. We DO have national security issues. Like, why have we given so much advanced technology to China to make our goods? I'm thinking of that Iridium fiasco and off-shore production of Boeing components. Why do we allow one country, China, to be the primary source for so many of our imported products? We should be spreading this around the world. Why do we tolerate foreign government subsidies, currency manipulation and dumping with such a minimal response? Why do we allow such rapid economic impacts to communities resulting in depression and drug dependency? Government has an obligation to ensure that company decisions to out-source don't decimate their workers. This is not a Left or Right issue. It affects all working Americans. Trump's Nationalist rhetoric notwithstanding, Democrat and Republican politicians should take note. Dump Free Trade. Embrace FAIR and BALANCED trade.
30
Fair and Balanced trade was what Mr. Cohn was all about but Peter Navarro will be pushed too. The White House is out of control. The Dow’s 2018 gains are kaput. The index suffers 300-point tumble after Cohn quits! Fair and Balance trade takes intelligence and econometrics...
" Like, why have we given so much advanced technology to China to make our goods?"
How about... To fill our Walmart carts with cheap, very cheap stuff AND fill the obscene coffers of the Walmart family. And repeat w other industries and 1 percenters.
1
Q:"Why do we allow one country, China, to be the primary source for so many of our imported products?"
A:Cheap, but more importantly, obedient labor. You see, back in 1995, when the ink was still wet on the NAFTA agreement and Mexican labor costs were about the same as China's, our corporations, pioneered by Jack Welch, decided China was the better deal. Since then, China has enjoyed at least 20X the amount of US investment than Mexico. Oh, 1995, was when the immigration numbers from the South started rising rapidly.
See, we did it to ourselves! It's all connected!
Last week ex-Goldman Cohn was Trump's goniff, now he's just a goniff.
4
This was a classic impulse-control challenged Trumpian move - draw attention on his own awesomeness, and deflect attention away from annoying issues (like grand jury subpoenas, Russiagate, Stormy etc. etc etc.) by recklessly making a pronouncement in a vacuum, and that is primarily intended to keep the low-information base happy and the press busy.
Only this time, is wasn't the NFL taking a knee, or the non-stop demonization/obsession with brown people with accents, or doing a 360 on reproductive choice. (He's been kinda quiet lately on his faves - "the second amendment people".)
No, this time he stepped in it. And now he is painted in a corner. This time it is about money and global markets, (of which this serial bankrupt and con artist actually knows very little). This time it isn't about his big button. It's about the interconnectedness of our world - and like it or not- we are connected.
The Allies have had it. They are rolling up their sleeves. Putin is thrilled.
And the base is trying to figure out if this will adversely effect them (it will).
Accept the fact that this guy is a joke.
On us.
110
I fear that Trump is just itching for a war of any kind! It seems that confrontation is how he gets his jollies.
1
not a joke, not laughing, where is the big hook?
I was just saying last week to a friend our government under Trump was shambolic. "Shambolic?" he asked. "I haven't heard that word used in a long time. Refresh my memory, is that like a sham or is it like a shambles?"
Yes, I thought, that word has a ring to it (onomatopoeia); Like moo or ouch! Even better? Whoosh, the sound of air rushing out the door, or in this case advisers and staff being blown out of the White House by the constant escaping of hot air from our President.
"No," I said to my friend, shambolic means 'very disorganized; messy or confused: I’ve had a shambolic year, the worst ever.'"
"It works either way," my friend replied thoughtfully. "Shambolic..."
4
Mr Cohn was never a man of moral principle. He became a part of this administration for one thing only - TAX CUTS!!!!
He served in this White House despite the naked sexism, anti-semitism, racism, nativism, incompetence and corruption. His resigning over tarrifs is not going to be proudly spoken about by his grandkids.
16
Cohn: gone, but not forgotten.
he went to DC with one big wish: to relieve himself and his ultrarich cronies of the massive "burden" of contributing to the country that allowed their outsized sucesses. he got his wish, his taxes are slashed, and now he can move on to greater goals of rapaciousness, knowing that at the end of the day, each deal will pove more profitable to him than ever before.
... making America great again for the 1% and serfs of the rest of us.
51
Can't you be just a little most honest here?
Gary Cohn represented the tippy top of the 1%. THE RICH.
He got his huge tax cut, saving himself millions.
But the elite media are today in mourning.
And yet you wonder why DJT has tapped into the common persons hatred of the media.
Ad yet you wonder why the public hates the media.
2
It's official: the media have a shorter memory than the citizenry. Yesterday's headline was that 42% of Americans will retire broke. Cohn, Ryan, Hatch, Sulzberger, et al can retire far from broke but they want to make sure the US remains an"economic powerhouse"
Maybe the only good thing that can come disruptions in steel is gun prices will go up and kids cannot buy them
2
Todays headline in Germanys No. 1 news portal:
"The last adult leaves the White House".
54
I think NY Times is overanalyzing this resignation.
Gary Cohen got his agenda (tax cut) implemented. Yesterday, he just found a good pretense to quit, and cash his chips before it is too late, and avoid any further damage to his reputation, or the resume, with any additional association with Donald Trump, or David Dennison.
29
..., Mr. Trump said on Tuesday. "...: Our country’s been taken advantage of by everybody, by everybody — almost everybody..." [except me. Now, it is my turn to take advantage of our country. It is my turn.]
17
Trump ran his campaign as a populist.
He made many promises.
He promised to stop illegal immigration. That was better than Clinton's position, which suggested a policy of open borders in emails of John Podesta that were leaked. But Trump also used inflammatory language regarding immigrants. It would have been far better to emphasize the ways we could help Mexico improve conditions so that its citizens didn't want to leave.
He promised a better health care system. Many voters felt lied to by Obama whose Obamacare did not halt the rising cost of medical care in the US. Perhaps stopping illegal immigration would help on that score. But Trump seemed uninterested in health care once elected.
Trump talked about a tax cut to help businesses create more jobs. He did deliver on that although many worry that the result will be inflation not more jobs. And now he has offset that with tariffs which will not bring back to health the relatively small US industry in steel, while it hurts the car companies and Boeing and defense contractors.
And there is no coherent explanation for this abrupt change in policy.
Now Gary Cohn leaves.
What exactly is Trump's goal? Does he want to get back at a country that is rejecting him? Why not at least TRY to do an acceptable job? Why not hire cabinet officials that will work for the good of the country instead of lavish praise on the Commander in Chief?
Trump sinks to ever lower lows. He is an embarrassment.
35
Well, at least you try to be balanced. I think your assessment of Trump is premature. Obama always was protected by the press. He tried to please them. Trump is constantly attacked, but he seems to thrive on controversy. The NYT tries to portray itself as the voice of reason, but is losing its touch. The headline of this article is just too much. One would think the world is losing its moorings. Trump always has the last laugh.
There are huge piles of last years corn crop stored on the ground in the Midwest. The bins are full so the grain must be stored in piles as long as a football field and forty feet high. This tariff thing isn’t going to help the Midwest farmers Much.
13
So stop government subsidies of corn since there obviously is no market. Oh. yes - stopping useless subsidies would be political suicide. Silly me.
1
For some reason, my eyes went immediately to Sarah Huckabee Sanders when I looked at the picture. I cannot begin to fathom what it is like to work in this White House.
4
The Republican python is eating itself. While the frenzied Trumpian head is presently satisfied with its destructive indulgences, soon enough there will be nothing remaining to sate its appetite for self-annihilation. Only that bloated head, terrified eyes popping, will remain. Ready to be shoveled into the dustbin by the Mueller Big Game Hunters. MAGA.
8
Good, with Cohn gone, now our fates rest in the hands of that great businessman Trump!
The same Trump who has lost over 3 billion in business dealings.
Trump who's such a great businessman, no American bank would or will loan him money.
Trump who had to go some of the worst human beings on the face of this Earth to get loans from.
This great businessman who's so great, he's afraid to show his taxes.
How can you not have anything but great confidence in his economic leadership skills?
18
Frankly, I don't know why President Trump even bothered to appoint anyone to any position since he took office. He rarely, if ever, takes their advice and those individuals who have not been shown the door due of one set of bad behaviors or another, have walked out on their own accord, either from disgust, frustration or everything in between.
This presidency is resembling a dying fruit tree on a daily basis, with bad, rotten or green apples falling from the branches at an accelerated pace.
6
Trump rode what appeared to be a contradictory set of ideas into office. He claims he is a friend to labor, but he wants to remove all safety and environmental rules to big business. He criticizes "the swamp" but has overt nepotism in his administration. Playing up China as a partner in a solution with North Korea, and then slapping tariffs against *all* foreign countries producing steel and aluminum. The cabinet is filled with people who have openly contradictory positions on issues.
If you look carefully, however, there is method in the madness. There is some hedging, but he came in with a program to scrap trade deals, attack immigration in all forms and insist on "America first". He is delivering on this. He has launched an all-out assault on immigration. He's flirted with white nationalists and has extreme protectionists in his inner circle like Bannon and Navarro. Having Cohn in his inner circle was really cover. The appearance of bipartisanship while pursuing a nativist agenda. Trump is to some degree an opportunist but his core set of ideas are clear enough. His political positions are sometimes driven by short term reward. He wavered on gun control for a day while the outrage of Florida played out, then assured the NRA that he was completely in line with them.
To be honest, the contradiction was Cohn's for being in the administration. If you are a free trade advocate, why go to bat with someone who embraces protectionist and nativist rhetoric. Why enable Trump?
4
The barrage of "get Trump" articles and essays here continues without even a wisp of embarrassment.
Stop pretending that free trade has somehow been operating here. It hasn't. The odd and deformed deals that were struck with our neighbors in the world are not a result of free trade. Free doesn't mean anything goes. Those trade deals were the result of weak negotiators and inexperienced political insiders who haven't a clue as to the brutal world of business. At best, they came from the ivy tower but probably never left it. President Trump is not like them. He will take care of us.
Furthermore, those who strangely claim that this is our fault, that somehow our not saving enough is the reason all this imbalance occurred, they twist separate issues.
2
Not being a member of the 1% and living on a small pension and social security, my confidence that Trump will take care of me is not as robust as yours. His experience with the "brutal world of business" has led to multiple bankruptcies and an unnatural admiration of the Russian President. His hatred for Obama has led to wiping out health and safety regulations/protections for workers, for the environment and the banking industry, all the while passing a budget that hugely increases the deficit. It limits the tax breaks until only 2025 for all the peons, but not big business, regardless of whether they are outsourcing.
Trump's belief about trade that we have been so totally taken advantage of by other countries may have basis in fact, but it seems just as likely that his position has more to do with his own perception of the world and how it has treated him. He does not seem capable of mounting a nuanced, knowledgeable approach to what is a complex issue.
1
Sure thing, Len. He got Mexico to pay for his wall, right?
Trump is a con artist with an animal cunning for selling himself to any audience, and then picking their pockets. You'll be left broke and betrayed, like so many who believed in him. And he'll steam happily ahead, pockets jingling, caring nothing for the human wreckage he leaves in his wake. Read the man's real financial history. He's a fraud.
To Diane and Namoi, Stop and think. You seem to spout things that do not correspond to simple facts. 1) Obamacare was imploding fast, and this had nothing to do with hatred of Mr. Obama. 2) President Trump, before ever entering politics, made a billion dollars. Multiple times. That is fact. Accept it. It's a huge accomplishment that requires deep knowledge and vast skill, both way beyond what a regular person is capable of. He is a brilliant man, and that brilliance and tremendous business acumen he now brings to the Presidency. It is a unique opportunity. 3) All your words about "picking their pockets" and "caring nothing for the human wreckage" and "unnatural admiration of the Russian President" clearly sound and are from the sick fixation of the mainstream media and career polliticians on taking him down. He has already helped our country enormously. Just consider the fact that he is bold and honest enough to bring to the front problems, real problems, that have plagued our country for many years, while all the other politicians didn't and wouldn't.
It's just another Trump scam... Whiplash Trump will have a sudden "change of heart" about tariffs soon after the Pennsylvania special House election next Tuesday. (GOP can't lose any more House seats before the midterms!)
6
What good is a free-trade voice in the White House if the Fauxtus ignores it?
6
Cohn’s departure underlines who in the White House has the most sway over Trump. That man is Stephen Miller, and his influence may well yet completely destroy the Trump presidency.
3
To paraphrase Mad Magazine, New York Times headlines we'd like to see: An Important Voice for Labor Union Proponents Goes Silent. An Important Voice for Free College Tuition Proponents Goes Silent. An Important Voice for Progressive Taxation Proponents Goes Silent. An Important Voice for Single Payer Health Care Proponents Goes Silent. An Important Voice for Bank Regulation Proponents Goes Silent. An Important Voice for Social Security Proponents Goes Silent. An Important Voice for Public Transit Proponents Goes Silent.
4
As Mr. Baker pointed out, Mr. Cohen is a Democrat which should put to rest the argument that the Republicans are always the bad guys while the Democrats are always fighting for the greater good, both of the major parties have displayed a total lack of interest in anything but their wealthy donors for decades. Gary Cohen was first and foremost a Goldman Sachs Banker. Mr. Cohen was instrumental in the design and execution of the just passed tax break for the Uber Rich which sooner rather than later will impact the money available for Societal Benefit. Financial publications are already reporting that the tax cuts for the most part are going to shareholders, executives and buybacks not promised job creation. Mr. Cohen also saved himself millions by going down the same Goldman revolving door to The White House as Paulson, Corzine, Rove and Rubin. How can we say that tariffs don’t work when they have been so successful in the rapid rise of China from third world country to exporting juggernaut, yes tariffs will negatively effect some American companies that have multinational exposure, but if anyone has a better idea about how to get good paying factory jobs to return America’s workers are listening. Fifty years of lip service and trickle down economics resulting in a handful of billionaires and the gig economy doesn’t cut it. When you have millions of highly educated young people trying to cobble together a living wage the “re-education” of those left behind doesn’t fly either.
1
Technology has had a big hand in doing away with the human labor machine that provided good middle class jobs for our fathers and grandfathers. And it will be even more influential in the future. The 1950s/1960s are not coming back. Move on. We need more technical education in this country not a push to put everyone into colleges with loans they can ill afford to pay back when those degrees (if they get far) don't work out. Even "free" isn't "free" if there's no job at the end of it.
Karen: Thanks for the feedback but tech jobs doing what, writing more apps? It would seem to a layman that tech and programming jobs would be the easiest to replace with AI they wouldn’t even require robots, just algorithms, the techies just haven’t gotten around to cannibalzing themselves, YET. BTW I completely agree with you, free is meaningless without a job at the end, but with this article being nominally about Gary Cohen as a “free trade democrat” I still haven’t seen anything proposed by either party in the last forty years that has worked to stop the flow of good paying jobs to whatever place in the world is currently offering the cheapest labor, so I’m sure if you had some specifics other than “move on” millions of American Workers would love to hear them. The only other potential for good paying,with benefits, job creation would I should think have to come from the government in the form of another W.P.A. type program that excluded private, for maximum profit, contractors in favor of perhaps the Army Corps of Engineers and I fail to see how this is going to happen with a bipartisan( Mr. Cohen again is a free trade Democrat)complicity of cutting taxes for the wealthy and corporations. In light of all this I can’t see the harm in tariffs against China but certainly not Canada or Europe who take much better care of their workers than we have for a generation.
2
Karen, just to add to my first response to you I believe that many of the hedge fund owned “technical schools and universities” have been pretty much discredited, many shut down as they have churned out people from massage therapists to auto mechanics for whom little employment exists. Trade schools in high schools like in the “fifties” Karen would I think be something worth reexamining as carpenters and plumbers seem to still be in high demand.
2
"An Important Voice for Goldman Sachs and Wall Street Goes Silent."
I have fixed the headline for you so you can now stop comforting the wealthy and start making them uncomfortable.
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If Cohn was a stabilizing influence at all on Trump, we sure could not notice. He championed a tax cut that benefits the ultra-wealthy like himself, is unlikely to benefit the average family much if at all, and adds $1.5T to the national debt unless they slash social programs like Medicare. If he is a champion of free trade, it did not matter. If he has a moral conscience, he should have quit after Trump espoused his sympathy for nice neo-Nazis.
So what if he’s gone? To even slightly detoxify the White House, the people who need to go next are Stephen Miller the hate whisperer, Ivanka Trump the obsequious and superfluous, and Jared the corrupt.
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And Kellyanne, the dehydrated creator and espouser of 'alternative facts'.
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... and Trump, the aggregator, pulling all things vile and corrupt into his orbit.
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President Trump “And I’ve been saying it for 25 years: Our country’s been taken advantage of by everybody, by everybody — almost everybody. And we cannot let that happen any longer — not for our companies and not, most importantly, for our workers. So we’re not going to let it happen.”
No one, absolutely no one has taken more advantage of this country than our shameful President Trump and GOP cronies. Just like President Trump who seems to live in vacuum as well as the spineless GOP, his staunch supporters have no inkling or care to understand the tremendous ramifications that may result from this tariff debacle, his tax cuts and everything else this president has done in his short tenure in office in the guise of ‘Making America great Again’. What a joke, travesty and liability this imposter of a President has become.
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You are correct, trump and the GOP are raping our country and filling their pockets.
There is absolutely nothing in Gary Cohn's tenure at the WH that justifies him being considered a Democrat. His GOP tax package "accomplishments" -- if left in place -- will be devastating to Democratic programs and Democrat citizens for a generation or more. But then, his actions in the wake of Charlottesville show that Mr Cohn is all too comfortable living in cognitive dissonance, if not outright hypocrisy and cynicism.
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The reason I will always remain an independent is because to do otherwise seems to require being part of a herd that can't think for itself and instead thinks in terms or democrat (or republican) programs and citizens.
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IT's all very easy - he's the 1% and he represents the 1%
This comment should really be at the very top. Cohn may label himself as Democrat for some reason, but his actions say Republican over and over again.
Trump's Tariff Policy, hurts America.
Trump's Tariff Policy, drives a bigger wedge between America and it's allies.
Trump's Tariff Policy, diminishes America's role as a world leader.
Putin LOVES Trump's Tariff Policy.
Dasvidaniya, Amerika.
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I would have been far more impressed with Mr. Cohn if he had left this hopeless administration after Trump's gutless comments about events in Charlottesville. But it should come as no surprised that tariffs are more disturbing to a former Wall Street executive than hate. That said, he finally did the right thing.
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The departure of Gary Cohen from Trump's administration does not mean that a Voice for Free Trade has gone silent. (Except for the White House) It simply means that Trump has further isolated himself from reality and will sink deeper into his self-deceptive delusional view of the world. The sooner Trump is seen for the totally irrational, inept, ignorant bomb-thrower that he really is, the sooner we can remove him and have a real POTUS, instead of an amateur actor with bad make-up and bad hair playing a fictional role in a fictitious reality TV show.
(Surely Trump's administration is just a sit-com and does not achieve the reality level of reality TV. We will all wake up soon to realize that the 2016 election was just a nightmare and not real)
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And I thought the show Veep was a far-fetched foray into comedy politics.
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They are for "free trade". Until they're not.
They are for "state's rights". Until they're not.
They are for "out of the bedroom and out of the boardroom". Until they're not.
They pass a tax bill that will steal your lifelong SS and Medicare contributions.
And they also tank your 401k and IRA.
There is a reason their hats are red. It is the color of their ink.
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So Republicans are now aghast at this president’s policies and how to make America great again? Is this proposal another campaign promise the president vows to make good on at the expense of his party's agenda?
Maybe they understand how the rest of the country has been outraged by this man and the way he has ridden roughshod over American citizens, civility and decorum, law enforcement and intelligence agencies, the opposition party and their candidates, his predecessor, a few Republicans who dared differ with him and many of his own handpicked staff and aides who are now bailing out on his administration in droves.
The Republican party is no better than the president. They’ve enabled him and turned a collective blind eye at his many outrages over the last year and gave him almost unwavering support for his proposals. Only now has the GOP express dismay and horror because the president threatens their agenda and hard-won tax bill while ingnoring the damage he has done to the country.
Mr. Cohn’s resignation is self-serving. If he were really offended by this president he would have resigned after the Charlottesville debacle last year. Cohn was okay with the president’s racism and bigotry then but now would have people believe that this tariff proposal is the straw that broke the camel’s back.
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Nicely written, silver. I totally agree. The tariffs are a convenient excuse for one resignation and for others, like Ryan, to distance themselves from Trump. And this is hardly the biggest moral imperative. But when business as usual is upended for the GOP, not when hate is encouraged, then they walk away.
Thanks, as always, for writing.
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Whenever this administration announces "This is what the people voted for" they need to be reminded that the majority of people voted for the qualified candidate, not the reality show bigoted know-nothing never-read-a-book clown con man who sits in the oval office.
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Gary Cohn has not "gone silent". Indeed, his voice from outside the White House might be heard better than it was from inside the White House.
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Trade with China has never been free, but rather China has always been engaged in a trade war. No American can do business in China without a Chinese partner who steals everything then the government ousts the American company. The ceiling on Americans allowed by China to get citizenship or permanent residency in China is 0. There have been millions and millions of Chinese-Americans, but 0 American-Chinese. According to author Eric Liu 941 persons born in US have been granted citizenship in China. The trick - and there’s always a trick with China? All 941 were Chinese anyway, Chinese mother, Chinese father. Chinese can buy anything they want in America, but an American cannot buy a property as big as a dolls handkerchief.
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So why attack Canada and the EU?
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I do wish he had targeted his trade actions at China instead of everyone else. At best it is a distraction from what needs to be done, and at worst, it will degrade relations with countries that should remain our friends. Sure, we have some minor differences with Europe and Canada, but they are trivial, and we can work them out without starting a war. China (as you say) is another matter, and deserves scrutiny, attention, and action.
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It's the South Park approach to international relations.
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trump is trying to appeal to his base, that was dumb enough to elect him. He believes that their loyalty has to be repaid, and repay them he will by increasing prices of consumer goods and getting the US into a trade war. Simply, when you have a failed "businessman" trying to run a country, you have a failed state (to be). Our only hope is that damage is limited enough to repair.
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Let's not mince ideas - Trump is implementing tariffs, without any advice or study on the matter, simply because his attractive female Yes Woman is quitting the White House.
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At bottom this is a guy who wouldn't hesitate to start WWIII because he's having a bad hair day. Pinballs sigh with jealous envy at the speed of his careening.
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Good riddance Gary. Your allegiances are to your former corporate clients at Goldman Sachs as shown when you cut corporate taxes at the expense of individual taxes. As for trade, how anyone can possibly argue that the US shouldn't at least impose similar tarriffs to what others are doing to us is beyond me - Free trade means an equal playing field and no currency manipulation
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Let him go back to raiding pension funds at Goldman, where he can use his full mental capacity cavorting and manipulating markets. He was clearly not a team player or loyal to his boss. Another grandstander and opportunist. Wish him well - not.
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Free trade is on the right side of history. Tariffs do little good and much harm. None should be surprised that the Baby King ignores the advice of experts. A leader would have worked on improving and passing the TPP, while trump is insular, ignorant and wrong yet again. The tax cuts for the wealthiest won't trickle down. trump supporters have voted against their own interests, yet all but the wealthiest will pay the price for their folly.
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No use being an "important voice" if it's impossible to be heard. Cohen knew exactly what he was getting into.
Trump had a history of wild assertions about every topic. Cohen's goal was to be appointed Fed chairman, a rank careerist. He didn't care a whit how he got there. Another Gorsuch.
No tears for this one!
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Show me an economist, any economist, who can demonstrate that tariffs help. Smauley-Hoot anyone? Why are we even debating this?
Other than populist sentiment from his base, and that ever-attention-seeking ego, why is President Trump doing this? What shred of evidence does he point to? Oh silly me, expecting facts and data from this president and this administration.
The saddest part is that this will cause even more manufacturing jobs to shift to lower-wage countries, hurting the folks who are clamoring for this even more.
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CoInn should go , he's out of touch. He did nothing to protect US companies being squeezed out of the China market, so should die on his sword, sooner is not soon enough.
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So which swamp creature will Trump chose to replace Cohen?
Carl Icahn won't, he's too happy making hundreds of millions from trading stocks based on his personal chats with Trump..
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Ah, Gary left his heart with Goldman Sachs... Now, can he reclaim it?
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Perhaps there is a lesson to be learned here for anyone with aspirations of working in this White House. Review the president's campaign speeches before applying. His mind on everything has been made up long before you arrive with facts and data to support your argument. Unless they match his subjective conclusions, you will lose.
He hasn't changed his mind on Mexicans. Nor has he changed his views on taxes, health care coverage, trade, the judicial system, the press, Obama, witch hunts nor his admiration for Putin. If you're hired, he may relish the opportunity to see you duke it out with one of his sycophants. But, a yes-man will always carry the day. So rather than lose your reputation or sense of self-worth, skip the charade, churn less stomach acid and raise your voice outside rather than inside this clown car.
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Allied with white supremacists, virulently misogynistic, destroying environment=I can stay on. Tariffs? I think not. This is supposed to inspire us as some kind of moral stand?
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If Paul Ryan and Orin Hatch really support free trade ("both of whom have long records supporting free trade"), how does Peter Baker explain their support of onerous government-granted patent monopolies, for ever longer terms, forcing both American and foreign consumers to pay higher prices (the "free trade" tax?)?
Meanwhile, domestic policy shields high-paid American professionals from foreign competition, while encouraging U.S. companies to hire abroad, with no enforceable labor and environmental protections, thereby putting most other American workers in direct competition with workers from Mexico, China and Vietnam.
This is a mighty strange notion of "free trade". If Ryan and Hatch faced foreign competition every time they solicited a campaign contribution, they might think differently.
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Cohen? Maybe he actually went to college. Hey, Dr. Krugman, can you repeat why tariffs are so nineteenth century and don't (can't) really work nowadays. Shucks.
Soon there will be no one left in the White House with Trump beside Javanka. Only Trump - who knows more than everyone else on every subject - would ignore his own economic adviser and general economic history to undertake another stupid initiative that will hurt the country badly. Watch the market tank today.
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More disintegration of the global order, especially the political, economic, and, necessarily, also the military, cohesion of the West. Just what Dr. Putin ordered.
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Suddenly, Democrats, liberals and progressives are in favor of totally free trade. Protecting American workers from the unfair practices of countries who subsidize their major industries so as to promote exports is not important. Why the reversal of a long held Democrat principle? To defeat Trump. It's that simple. Hypocrisy? Of course, but hypocrisy is a small price to pay to advance your political agenda.
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But this essentially pinpoints the totally broken nature of the Congress, the Presidency and Washington as a whole. There is no true independent political leadership anymore, and while it is especially seen in the Republican Party, the Democrats are susceptible to the same money influences that have plagued our politics for over 40 years. (i.e., Sen. Schumer repeatedly caving in to Wall St. vis-a-vis carried interest and now Dodd-Frank). Having snowed middle America for 40 years with repeated, false conspiracy theories about guns, abortion and religion (while picking their pockets and delivering nothing in the way of true services), enough disillusioned Americans voted for Trump out of total frustration with Washington. But they never bothered to "read the book" or truly listen to the undercurrent of the nonsense spewed by Trump and the true nature of the man. So when their washing machine costs $100 more or any other good made of steel or aluminum increased by more than 25%, perhaps they will finally realize how they've been snookered. And thanks to lobbyists, campaign donors and Citizens United, not to mention the Kochs and the Mercers, we've become hostages to the thin sliver of society that controls the pols. Here's a "Bud" to you, at 10 cents more a can.
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Tax cut for the 1% passed - check.
Mission accomplished.
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The GOP priority now is controlling Congress and/or the Presidency for as long as possible to preserve that tax cut. All else is secondary gravy.
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"While Mr. Trump’s views on many issues have been flexible or evolved over the years, his belief that the United States was being shafted has been a core conviction going back decades, long before he first ran for president."
Classic right-wing victimization and blame-casting. Unfortunately Trump found out it also played well to his "base" who are at the polar opposite of the economic spectrum but who are equally eager to learn whom to blame for their troubles.
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Gary Cohn resigned and, as is core to his character, he took the very high road in announcing his resignation. He declared his honor to have had the opportunity to serve. Too bad the unidentified sources within the White House can't find the high road, preferring to talk about the alleged rift on trade between Trump and Cohn as the cause of his departure. I can't think of any other large organizations where the internal discussions and airing of differences becomes the subject of outside gossip.
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Seems as though it's fine to play with the lives of DACA youth, LBGT people everywhere, national security—no objections.
Only one thing matters to this crowd. Only one thing they will bother to oversee.
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Second guessing Mr. Trump is not for the feeble minded. So, I would caution anyone from doing it for in pursuit of validating likes, so that one does not appear silly later on. Criticizing Trump for his economic “nationalism” disregards a fundamental principle of American behavior in the world. National interest has always been the main determinant of American policy in the world. There are no signs I can see that would indicate the intention of Mr. Trump to cut America from the rest of the world. America under him remains engaged with the world. “America First!” does not mean America alone. Trump is not an ideologue. He has a mercurial and pragmatic mind that I would certainly not discount gratuitously, unless I think of myself as infallible. He could introduce these tariffs for a variety of reasons, including as a chip in renegotiating NAFTA. But let’s think about some possible effects of this move. It will certainly bring more capital into the U.S. This money will be invested. I do not think that investment in the U.S. will recreate the Chinese model based on very cheap labor. I do not think that it will be even the recreation of American steel industry of the period prior to the loss of our leading position in this area in the world. It will certainly create something new and much more efficient, relying heavily on computers, automation, and robots. The effect of this innovation will not be lost on us or the world and, in my humble opinion, it will be beneficial.
It has become more and more obvious that “free trade”is an oxymoron. It should be stricken from the vernacular, because it simply does not exist.
There was nothing free about NAFTA, except for the cheap labor to fruit growers and hotel chains for housekeeping. NAFTA came with a significant cost to our devasted manufacturing sector and middle class as jobs moved south of the border where there is no EPA, NLRB, OSHA and the average factory hourly wage is $2.56. So called free trade with China since it was permitted to join the WTO is another example. The US cannot compete freely with a country with state-subsidized industries and practices that border on slave labor.
Let’s replace the term, as we have so many others, with a phrase that more accurately represents the imbalance of trading with countries with little or no wage or environmental standards.
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I'm curious, how did those hotel chains manage to move their housekeeping jobs south of the border while keeping their hotels north of the border? Oh, never mind. I don't expect a coherent answer from someone who very obviously knows as much about economics as Trump.
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"Free Trade"?
Can we trade Trump for a rational leader?
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If wages and regulations were the only issues Germany, Sweden, Norway, Australia, Japan, Canada ... wouldn't be competitive either. Wages and regulations are a canard used by those who favor punitive tariffs. If we want the US to compete, Americans must stop whining and start focussing on what makes us competitive: quality rather than quantity. That means spending a lot more tax dollars on education and infrastructure and a lot less on things that hold back productivity, like prisons and walls.
It also means valuing labor. Look elsewhere in today's Times to find the story about bricklayers. There is nothing wrong with being a tradesman except that we seem to place a higher value on being a robber baron than on being a productive member of society. Once again, look at Germany, Sweden, etc., for examples. Those are our competitors, not China and Mexico. Unless, of course, you want to go back to the 19th C. That's where trade restriction would take us. Me? I like it just fine in the 21st C.
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I'll let a real expert do the talking for me this time.
Professor Jeffrey Sachs published a great article on trade deficits on CNN.
Quote:
"First, Trump thinks that America runs trade deficits with countries like China and Germany because the US is being swindled by them. The real reason is that the US saves too little and consumes too much, and it pays for this bad habit by borrowing from the rest of the world. The Trump theory of international trade is like a man in deep debt who blames his creditors for his spendthrift behavior."
Here is the link:
https://edition.cnn.com/2018/03/02/opinions/trump-tariff-move-shows-his-...
It's all our fault and the markets are just satisfying our domestic behavior.
Trump is the ultimate know nothing. Manufacturing is a global enterprise. all companies, large and small use goods sourced from around the world. This is the reality. Any tariffs, which are taxes, that drive up the costs of these materials, will drive up the costs of all of them. Everyone loses.
The irony of these primitive tariffs is that in the end, they will not produce any upswing in domestic production. They will only decrease it and take jobs with it.
I guess Trump's base is so giddy about their $4000 raise from the tax cut that they haven't had time to figure this one out.
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Saving little and consuming too much is a consequence of bad trade deals - not the cause
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Correction, Bruce.
Trump's base is so giddy about their IMAGINARY $4000 raise from the tax cut that they haven't had time to figure out they've been Trumped.
America's county fair folks have always enjoyed a good old-fashioned swindle by a city-slicker.
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"The Trump theory of international trade is like a man in deep debt who blames his creditors for his spendthrift behavior."
And this fits so nicely with the conservative meme of being victims. This explains why Trump's supporters are okay with the tariffs. Trying not to be reductive, it almost seems that any policy Trump advocates that appeals to Americans as victims, wins the day.
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