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Mexico’s Scramble Proves Free Trade Extremists Wrong

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Initially, let’s get this clear and open our eyes:  President Donald Trump just put a knife to the throat of the U.S. Chamber of Commerce, the GOP “donor class,” and open borders Republicans.  Irrationally, Trump’s critics always misunderstand every action as being a single, isolated event, rather than a long-term process.

Trump’s proposal over the last ten days to impose tariffs of up to 25% on imports from Mexico was not primarily aimed at Mexico.  Trump’s tariff threat was aimed at open border / pro illegal immigration / pro amnesty Republicans who have been sabotaging conservative efforts to defend our nation’s borders for decades.

Trump laid down the law declaring that the status quo is going to change.  The open borders / cheap labor Republicans (not to mention Democrats) have maneuvered to block change.  For decades, long before Trump, these traitors to U.S. workers have manipulated the system to keep the status quo.

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Trump just signaled that — one way or another — the open border exploitation by corrupt businessmen is going to end.  The party’s over.  You don’t have to go home, but you can’t stay here.  Trump will bring the entire charade to a screeching halt one way or another.  So get on board with the solutions and the new approach of actually treating the United States like a real country.

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Last week, Republicans and other “conservatives” got a first-hand experimental proof that all of the propaganda on free trade and tariff is wrong.  Yet will Republicans and “conservatives” learn anything from this first-hand experiment, this empirical proof as a massive experiment?  Unlikely.

On May 30, 2019, President Donald Trump announced (initially on Twitter) that he would impose tariffs on products “from Mexico” imported into the United States if Mexico did not stop facilitating floods of Central American rent-seekers traveling over a thousand miles through Mexico to crash the gates at the United States’ Southern border.

(Most of the high-value products are not truly “from Mexico” but are products of U.S. companies that moved their factories from the U.S.A. into Mexico to screw U.S. workers.  We tolerate this shell game and pretend that this is okay.)

What happened?  Mexico scrambled to avoid the tariffs.  Trump announced that a 5% tariff would begin on June 10, gradually increasing to 25% by October.  Mexico panicked.  Mexico did back flips to avoid even the 5%.

Almost instantly Mexico’s diplomats assured the world publicly that the U.S.A. and Mexico could work out an accommodation and the tariffs would never need to be implemented.  Trump responded that he welcomed the talks, but the first round of 5% tariffs on Mexico’ imports would go into effect on June 10 no matter what.  Within days, Mexico’s top diplomats were in Washington, D.C. desperately working out a deal to avoid even the first round to tariffs.

But why did Mexico care?

Free trade fanatics insist that only U.S. consumers pay the tariff.

So why did Mexico care?

We are instructed to believe that tariffs are a tax on U.S. consumers.  (A tax you don’t have to pay if you just choose to buy American.)

We are instructed to believe that Mexico as the exporter does not pay the tariff and is not affected in any way, at all.

So why did Mexico scramble to avoid the tariffs?

Answer:  Because the Cult of Free Trade is wrong.

Here is the orthodoxy, which you are ordered to believe:

U.S. consumers pay the tariff when the U.S.A. imposes tariffs on imports from foreign countries.  The foreign manufacturer or seller is unaffected.

U.S. manufacturers pay the price when foreign countries impose tariffs on U.S. exports.  Foreign consumers are unaffected.

See the irrational cognitive dissonance?  This is why I use the term “cult.”

U.S. consumers are hurt while foreign manufacturers are unscathed by U.S. tariffs.  But, irrationally, U.S. manufacturers or farmers exporting their products are hurt by foreign tariffs on U.S. exports while foreign consumers are unscathed.  How’s that, exactly?  What???

No matter which way it goes, the U.S. is hurt by tariffs but the foreign country is never affected at all.  That is not a rational discussion.

You can believe in the value and benefits of free trade without losing your mind over it.  Being for free trade and being a fanatic are not the same thing.

Let’s (always) define our terms.  In this author’s experience, about 50% of 100% of the political controversies and life issues and even interpersonal conflicts comes down to undefined key concepts.  People trip over words that have different meanings to one side than the other.

So we can support free trade.  But when it becomes fanaticism that is a fundamentally different concept.  Weighing the value of free trade on a case by case basis is correct.  Jumping off a cliff to the extreme is not correct.

Heavily funded by the same businesses who profit from open borders, cheap labor, and exploitation of U.S. workers and consumers, the Cult of Free Trade insists that tariffs are always bad and wrong.  The donations from businesses who exploit our citizens have been very well spent.  U.S. workers who have lost their standard of living and often their jobs will zealously defend the schemes of the crony capitalists who undermine them.

But the U.S. Constitution funded the U.S. Government almost exclusively by “excise taxes” including tariffs (duties) on imports.  That changed in 1913 when the income tax was created by the Sixteenth Amendment.   Attacking the U.S. Constitution, these “conservatives” pursue a fanatical devotion to a caricature version of free trade that was never part of the Republican agenda, never true in the real world, and in conflict with real life.  They reject the system of tariffs built in to the U.S. Constitution.

Ronald Reagan was a free-trader.  Ronald Reagan was a protectionist.  Reagan was both protectionist and a free-trader on the same day, often in the very same speech.

President Reagan imposed hundreds of purely protectionist tariffs — for no reason but protectionism (unlike China which has clearly violated specific trade rules).  Reagan gave speeches in the very same speech praising the importance of the free market but simultaneously warning that protectionism is necessary to protect U.S. manufacturers at time.

Reagan imposed protectionist tariffs on imported motorcycles to save Harley Davidson from business failure, purely to benefit an American company. “President Reagan, asserting that he was trying ”to enforce the principles of free and fair trade,” imposed a 100 percent tariff today on some Japanese-made computers, television sets and power tools.” (Gerald Boyd, New York Times, April 18, 1987, page 1.)

The Reagan “administration imposed more new restraints on trade than any administration since Hoover.”  Bill Niskanen, a member of Reagan’s Council of Economic Advisers, summarized in his definitive book: Reaganomics: An Insider’s Account of the Policies and the People (Oxford University Press, 1988)

In other words, Reagan was not the fanatic that the Cult of Free Trade wants all Republicans to be.  How could Reagan be both a free-trader and a protectionist at the same time?  Simple.

Trade policy was a tool for Reagan.  A hammer. A screw driver.  Reagan did not bow down and worship at the altar of free trade nor declare tariffs the devil.  Reagan merely rummaged through his tool box and pulled out the right tool for the situation at hand.

I wrote a quick summary for World Net Daily on Reagan’s careful balancing between the two ends of the spectrum in The conservative position: Free trade or protectionism?   But there are dozens of such reviews of Reagan’s protectionism to be found.  See, for example:  Ronald Reagan: Protectionist | Mises Institute

Free trade is a tool.  Free trade is not “the one true god” that you must bow down and worship.  It’s just a tool. You don’t worship a screwdriver.  But a screwdriver comes in handy when you need one.

Yet the fever of fanaticism against tariffs has infected most of the Republican party.  We had Republicans in Congress about to revolt against their president to block the tariffs on Mexico.  Never did Republicans threaten to rise up against President Ronald Reagan’s protectionist tariffs on Japanese exports.

Opinion

A Nation on the Eve of Destruction…

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There may be just more day remaining until the façade of civil society crumbles in the former land of the free. What is likely to come – barring the unlikely instance of a Trump landslide victory that cannot be reasonably questioned or disputed – will make the events of the past year pale in comparison.

They have already pumped the country full of irresponsible hysteria, devastated the economy, destroyed millions of lives, gave thugs the green light to rape and pillage cities, and then, when people predictably and understandably become enraged in response at these devious and planned measures, those individuals are the ones who every powerful figure and entity will come out and condemn, echoing ADL and SPLC propaganda that white people are the real threat, and supporting a Draconian response against the individuals who have already been crushed by tyranny.

This is the definition of systemic oppression, and it is not happening to minorities. It is happening to the majority that has been marked for replacement by the ruling class. An entire billion-dollar industry has been constructed, to allow racism to pass as scholarship, that venerates fiction over fast, simply because it can be used to demonize whites. This is the basis of white fragility, the 1619 Project, critical race theory, and many other establishment-backed blood libels against white people. This is what has captured the institutions while decent Americans were sleeping.

The Democrats and allies in academia, the fake news media, Big Tech, etc. simultaneously argue that President Trump is a fascist dictator but complain he has not taken enough authoritarian and repressive measures to lockdown society under virus hysteria. They argue to disband the police and take their funding away, but cheer when law enforcement arrests a citizen for violating social distancing mandates or not wearing a mask. They claim President Trump is conducting an assault on the free press, but cheer when the free press is censored by the most powerful corporations in the world because accurate reporting may hurt their political agenda. They – despite hundreds of videos showing diverse mobs looting, burning, assaulting and committing random mayhem – contend that it is really white nationalists who are behind the nationwide orgy of destruction being done in the name of black lives. They say that white nationalists are responsible because their social media posts are violence, while anti-white terrorism in the streets is speech.

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They said that there was no way the 2016 vote could be illegitimate, before flipping the script completely less than 24 hours after President Trump won because the result did not go their way, and then creating a Russian collusion conspiracy out of whole cloth. They made up the story that our electoral system is so vulnerable that a handful of Russian social media posts could swing an election. In the next breath, they have argued that widespread mail-in voting could not have any possible concerns – despite the notorious inefficiency of the postal service, the countless instances of discarded ballots or other types of fraud that have already been discovered, and the fact that ballots will be accepted in battleground states AFTER Tuesday. They now openly pine for an international takeover of the U.S. if Trump wins despite having recently complained about foreign interference incessantly for years.

They “fight the power” by supporting an agenda pushed by the most powerful corporations and politicians in the world. They push lockdown policies that have resulted in the greatest transfer of wealth from the poor and middle classes to the super rich in history, while simultaneously bemoaning income inequality and blaming the effects of policies they support on free market capitalism. They used to act like they opposed war and civil liberties violations by military bureaucrats and intelligence bureaucrats, but now they cheer on the deep state to violate the rights of their opponents and support endless war to provoke Russia. There is no principle that they would not surrender on their quest for absolute power, and acclaimed liberal journalists are beginning to admit that the Left is hell bent on achieving a Soviet-style regime in the U.S. They are enforcing it already without even controlling the presidency, using terror to enforce blind conformity.

The hypocrisy is reaching gargantuan levels, so much so, that our brains are ill-equipped to process what is exactly taking place. These globalist forces want to trap you in a labyrinth of inherently contradictory propaganda designed to leave you feeling bewildered and debilitated, and unable to coherently explain what is happening to your fellow citizen. It is like this with regards to COVID-19, the explicitly anti-white BLM/ANTIFA uprising, the Russian collusion hoax, the Hunter Biden email leaks, and virtually every issue these days. It is not by coincidence. This is mental conditioning for the next phase of the technocratic program. Call it whatever you want – the Great Reset, the New World Order, the One-World Government, the Scientific Dictatorship of the Elite – but they will accept nothing less than your soul as tribute to the new Beast Regime that is at hand.

Too many conservative and libertarian Americans are unfortunately clinging to an illusory civil society because they cannot come to terms with the reality of what has happened to their formerly great nation. It is time for some serious introspection about what is next. Have Americans made their possessions and creature comforts into false idols? Are Americans that addicted to the debt-fueled convenience of modern life that they would sacrifice their dignity, virtue, and sacred honor to keep the party going just a little while longer? Win or lose on Tuesday, Americans must stand and fight against the human vermin who would have their children subjugated in the land conquered by their valiant ancestors. The remnant must be ready, willing and able to make the sacrifices the founding fathers made in order to truly make America great again.

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