LETTER TO THE EDITOR / SELF INFLICTED WOUNDS

Roger C. Kostmayer

An unnecessary trade war has been launched. Most post WW II economics text books address why trade wars (raising tariffs on imports to protect domestic producers) are disastrous for all parties.

Republicans have traditionally been advocates for international free and fair trade, and they used to point out the damage attendant to escalating tit for tat retaliatory taxes. The Trump trade war (TTW) has already cost farmers an estimated $13 billion. But, you may ask, once it’s clear the trade war failed, shouldn’t we admit the mistake and go to plan B ? Instead, Mr. Trump, who neither understands economics 101 nor listens to those who do, chose to double down on Socialism 101. To make a bad mistake worse, the President focused on politics and promised to make farmers welfare queens by giving them $12 billion – in spite of the fact that farmers want fair prices, not charity.

No one in the White House was able to explain to the President that lots of other industries and manufacturers, who have been hurt by this trade war, will now demand the same largess. The result is we’re headed down a slippery slope and, ironically, it’s Trump’s socialism-on-steroids that’s taking the country toward a 1929 scenario. Trump’s reaction so far is -“Tariffs are the greatest!“.

Some Republican Senators rose to the occasion: “A terrible policy that (hurts) farmers”; “The TTW is cutting off the legs . . .& his solution is $12 billion for gold crutches !”

The obvious solution is to call off this benighted trade war and save American producers and consumers from more serious economic pain.

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