Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Peter Morici: Trump's Got It Right on Trade
U. of Maryland economist Peter Morici, former chief economist at the USTR, endorsed Trump's trade plans, in a commentary this week. Here's how he begins:
He estimates that just this year, the growth in the U.S. trade deficit with China cost by $25 billion cost an additional 200,000 U.S. jobs:...
To read the rest, follow the following link:
Climate change commitments to be added to NAFTA not TPP
An article from IBTimes quotes the top U.S. trade official saying that the Paris climate commitments would not be added to TPP, because doing so could kill TPP:
But it then quotes the top Canadian trade official saying that, instead, strong North American commitments on climate would be added to NAFTA:...
In one of National Review’s hit pieces against Republican presidential frontrunner Donald Trump (What Trump Doesn’t Understand – It’s a lot about our Trade with China), correspondent Kevin D. Williamson called Trump a “dangerous buffoon” because he would threaten tariffs upon China’s products, and thus risk a trade war with China. But it’s not Trump that is the buffoon on trade; it is the National Review!
Trump plans to take on the huge U.S. trade deficit with the world, and especially with China. He threatens to place upon Chinese products a tariff that is like the 45% tariff that China recently placed upon some U.S. cars. Such a threat could lead to negotiations between the U.S. and China about balancing trade, and Trump wrote the book on negotiations.
When an article tears into a candidate for having his facts wrong, the magazine that prints it probably should check to make sure that the candidate is actually wrong. But National Review failed to fact-check this piece. Its correspondent Kevin D. Williamson wrote:
But Chinese tariffs on big-engine American-made cars were in addition to China’s already existing 25% tariff on all U.S.-made vehicles. The Guardian, a British newspaper, got it right when the new tariff was announced. It reported on December 14, 2011:
Let’s add up the numbers. China’s base tariff on American vehicles is 25%. In 2011 it announced that it would add an extra 22% on some cars. If you add 22% to 25%, the total is 47%, which is much closer to the 45% that Trump stated than to the 12.9% claimed by the National Review.
The U.S.-China Trade Relationship
The unwritten rule of U.S.-China trade is simple. The U.S. buys Chinese products, but China won’t buy American products unless they can’t be produced in China. As a result, the U.S. trade deficit (goods and services) with China has been growing, ever since President Bill Clinton gave China “most favored-nation” status and WTO membership in 2001, in return for reductions in China’s tariff rates.
During the year from October 2014 to September 2015, as shown by the right-most line in the graph below, the U.S. trade deficit with China was a record $338 billion:
To read the rest, go to:
Sarah Palin to endorse Donald Trump at Iowa rally tonight
According to the New York Times, Sarah Palin is going to endorse Donald Trump at a rally in Iowa tonight. Palin, like Trump, advocates balanced trade. Here's what I wrote in a a post on this blog on June 7, 2011:
Had Pres. Bill Clilnton Banned Muslim Travel to the USA 9/11 Would Not Have Occurred
Candidate Donald Trump called for the United States to bar all Muslims from entering the country until the nation’s leaders can “figure out what is going on”. Saying that “hatred” among many Muslims for Americans is “beyond comprehension,” Mr. Trump said in a statement that the United States needed to confront “where this hatred comes from and why.” “Until we are able to determine and understand this problem and the dangerous threat it poses, our country cannot be the victims of horrendous attacks by people that believe only in jihad, and have no sense of reason or respect for human life,” Mr. Trump said.
According to the New York Times, “Repudiation of Mr. Trump’s remarks was swift and severe among religious groups and politicians from both parties. Mr. Trump is “unhinged,” said one Republican rival, former Gov. Jeb Bush of Florida, while another, Senator Marco Rubio of Florida, called the ban “offensive and outlandish.” Hillary Clinton said the idea was “reprehensible, prejudiced and divisive.” Organizations representing Jews, Christians and those of other faiths quickly joined Muslims in denouncing Mr. Trump’s proposal…Mr. Trump made his remarks a day after President Obama delivered a national address from the Oval Office urging Americans not to turn against Muslims in the wake of the terrorist attacks.”
All seem to have forgotten that Muslims from many Mid-east countries participated in terrorist attacks in the U.S., attacks on U.S. passenger airplanes, attacks in friendly countries like the Philippines and France. The Muslim terrorists involved in those attacks came from Saudi Arabia, Iran, Iraq, Syria, Jordan, Egypt, Lebanon, Kuwait, Pakistan, Chechenia, and others with Muslim populations.
Had the ban been imposed by Pres, Clinton after the first bombing of the Word Trade Center in 1993 and after the warnings he received from the Philippine Police after the attacks in the Philippines in 1995, we would have avoided the attacks of Muslims in the U.S. during the past two decades and saved thousands of American lives. According to Wikipedia, the following Muslim attacks took place in the U.S. since 1993:...
Journal of Economic Literature:
Atlantic Economic Journal: