Trump Is Right On Trade

Dr. Walter Williams was the first guest on Mark Levin’s new show on Fox News last week on Sunday night.  It was a fabulous show.  We should pay attention to many comments Dr. Williams made, but one statement stands out as a basic philosophy we all need to heed.

He said those who think security is more important than freedom will get little of either; and, those who think freedom is more important than security will find both.

Keep that in mind as you read this article.  It is important… and it will likely make you aware of your own personal priority structure.  Which do you place first?  Do you prefer security or freedom?  We would all like to have both, but if you had to choose, which would it be?

Other questions you need to ask yourself as you read this article and listen to supposed experts on the subject of President Trump’s imposed tariffs on steel and aluminum include the following:

  1. What nation is the biggest threat to America’s world leadership?
  2. Which nation in the world controls North Korea and its threats of nuclear war against America?

The answer to both questions is: China. Russia is significant and is not to be ignored, but China has a population of 1.4 billion and the Russian population is about 1/3 the size of America’s.

This final question is one that will indicate whether or not you have any common sense.

Is your nation (in this case America) dependent for defense materiel like aluminum and steel on the nation that is the greatest threat to our security internationally?  China produces 1.7 billion tonnes of steel annually.  The answer to the question is “yes.”  Is America’s ability to respond to threats of – or indeed an actual attack of  – war impacted by this?  The answer to that question is also yes.

That should give you some idea of the importance of the actions regarding tariffs on steel and aluminum taken by President Trump last week.  It was interesting to watch Utah politicians react negatively to the tariffs (which will stimulate steel industry jobs in their state and others).  Follow the money.  Look up the history of Geneva Steel and Anderson Development and the intended use of  Geneva’s 1,750 acres by Anderson.  Interesting stuff.

The U.S. imports most of its steel from Canada but much of Canada’s steel is owned by investors in India.  We need to remember how 20 percent of our uranium ended up in the hands of the Russians when Hillary Clinton arranged to sell it to a “Canadian” company which was owned by Russia (which bought the uranium from the “Canadian” company). Eighty-eight percent (88%) of Canada’s steel is shipped to the United States so it is unlikely that Justin Trudeau and the Canadian government will be happy with the tariffs.

The U.S. is the largest importer of steel and aluminum in the world.  What are two of the most needed things required to produce weapons of war?  Steel and aluminum.

There is little doubt that the cost of goods will increase because of the tariffs, but how much?  According to Commerce Secretary Wilbur Ross, the increased cost for a can in which to deliver the beer you drink will be one cent.  How much the beer companies will increase the price, telling you it is because of the increased cost of aluminum, is a different issue.  One cent per can is the actual cost.

According to Andrew Kenningham, chief global economist at Capital Economics, “The direct impact on the global economy of the tariffs President Trump announced yesterday would be minimal.  But the fact that they are being justified under a flimsy pretext of national security increases the risks of retaliation,” Kenningham says.

We can tell from Kenningham’s title – chief global economist – whether he is a globalist or a supporter of American sovereignty (and German, French, British, and other European nations’ sovereignty, too).

“Steel is needed for the military” is a flimsy pretext for President Trump’s decision to impose tariffs on steel and aluminum?  Let’s take a look at reality.

An aircraft carrier contains 47,000 tons of structural steel and serves as home to 6,000 Navy personnel.

We have all heard the stories – well, those of us who pay attention to things like this have heard – how military jets have crashed because they do not have access to new parts.  According to a recent article by James Hasik, senior fellow at the Scowcroft Center on International Security, however, all segments of America’s domestic steel industry contribute directly or indirectly to the defense of our nation.

“Whether it is missiles, jet aircraft, submarines, helicopters, Humvees or munitions, American-made steels and specialty metals are crucial components of U.S. military strength.  Steel plate is used in the bodies and propulsion systems of the naval fleet.  The control cables on virtually all military aircraft, including fighter jets and military transport planes, are produced from steel wire rope.  In addition, land-based vehicles such as the Bradley Fighting Vehicle, Abrams Tank and MRAP vehicles use significant amounts of steel.”

President Trump has sworn to strengthen our military.  It starts with tariffs on steel and aluminum so that our own production of these key metals can become instantly available to us should we need them for our national defense.

I understand that under an anti-military administration like Barack Obama’s that steel is considered “a flimsy pretext,” but under a President who recognizes that America is not just an ordinary country and who vows to put “America First,” it is not a flimsy anything.  The military uses it for everything from nuclear submarines to Patriot and Stinger missiles and armor plate for tanks and field artillery.  Military aircraft and our fleet of ships is also dependent upon it.

Under President Obama, our military was reduced in size and necessary goods to support it… in ships available to defend us, in aircraft available to defend us, and in all ground troop equipment.  President Trump is making sure we are able to defend ourselves but, more important, is making sure we are sufficiently strong militarily so other nations will think more than twice before attacking us.

Remember under whose American administrations North Korea became a nuclear threat to us:  Bill Clinton, George W. Bush, and Barack Obama.  President Trump is working hard and is playing catch up before Kim Jong-un achieves his nuclear missile delivery capabilities.

In an April 2017 memo from President Trump to Commerce Secretary Wilbur Ross, Trump asked Ross to consider whether “steel is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security.”  Thus, while the media is portraying the Trump tariff decision as an instant, reactionary action, it’s untrue.  The President has been looking into this issue for a year.

What’s the old saying about the penalty we pay if we forget history?  We are bound to repeat it.

I was alive during World War II… a child, but I remember it well.  I recall that for Japan to sustain its war effort in China, it needed territories that produced oil, iron for steel-making and other natural minerals (which Japan lacked).  Japan seized oil fields in Indonesia, Malaya (as it was then known), and Burma.  The military-industrial results tell the story.  During the war, Japan produced 70,000 aircraft; the U.S. produced 300,000 aircraft and ten times more munitions.

Trade wars are not pleasant events.  We can plan on an increase in the cost of some goods while President Trump keeps his promise to keep American as his primary consideration for any action he takes.  For too long, emphasis has been on industries profiting at the expense of our national security.  It will take a short period of time for the pendulum to swing away from industrial profits back to the center of the scale where it belongs.  It is not as if the President has a choice.  This is the only way to make his economic policies work for the people instead of against them and in favor of industry.

The stock market has been over-valued for a long time.  In other words, the price per share is often greater than companies deserve based on actual productivity.  Don’t worry about the initial reaction – downfall – in the stock market.  I believe it will right itself quickly.  We may pay more for goods shipped from Europe.  China may increase its prices for consumer goods where it knows will be the most painful for lower and middle class Americans.  That, too, will have a relatively short life because China’s entire economy is based on its exports.  That fact controls how high they can increase costs.  If it gets sufficiently high so the American people stop buying their goods, it will be too costly for them to continue.  The Chinese economy is big, but it is not in good health at the moment.  President Trump could not have found a better time to take these actions.  Are you going to feel some economic pain?  Probably… but it’s far better than slavery to government and it won’t last long.

For those who hate capitalism, you might want to learn an economic lesson here.  The greatest weakness of socialist and communist nations is their lack of being able to develop a middle class.  Socialism and communism are two class systems… the elite and labor.  The lack of a middle class creates an economic problem:  Their system of economics (socialism, communism) prevents them from creating a class of people who can afford to buy products made in their own nation.  That, in turn, requires the socialist/communist economy to be totally dependent upon exporting its goods to other nations who can afford to buy them.  That is China’s current problem.

All of the college students out there who think socialism is cool will, undoubtedly, enjoy their status as laborers after graduating from college.  The elite class in socialist and communist nations is very limited to the extremely wealthy and since the only other class available is labor, welcome to the realities of socialism!

“Any man who thinks he can be happy and prosperous by letting the Government take care of him; better take a closer look at the American Indian.”  Henry Ford

Trump is right on this issue – though by the end of the week you will hardly be able to believe it based on all of the fake news about his tariffs you’re about to hear.

© 2018 Marilyn Barnewall – All Rights Reserved

E-Mail Marilyn Barnewall: emembee@charter.net