Sanity Check: Does Government Know How to Spend Your Money Better Than You?

Do you think the government can spend your money wisely, better than you? Think carefully.

Sanity Check on Trade

Please think about that Tweet for just one second.

Sanity Check on Big Government

If Trump said that the government knew how to spend your money better than you do, you would likely think he has turned crazy.

But tariffs do the same thing. They are a tax on consumers and/or businesses that import goods.

When Trump raises tariffs, not only is he picking winners and losers, he is also spending your money by making businesses and/or you pay more for goods.

Trump even bragged about it!

Got that?

Trump proposed a tax on consumers or businesses to help pay down the national debt. That is big government in action.

Sanity Check on Your Positions

If you support Trump's tariffs and you are against big government, your positions are dramatically inconsistent.

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Trump Doesn't Really Want Free Trade (He Just Wants to Make it Look That Way)

Canada, the Petroyuan Thesis, and Balance of Trade Issues in Pictures

Mike "Mish" Shedlock

Comments
No. 1-10
Ron Cataldi
Ron Cataldi

You mean "you" as me personally, or "you" as in the average American, who has no savings whatsoever and carries huge amounts of debt?

Kinuachdrach
Kinuachdrach

This is inconsistent with Chinese government statements that they are reducing taxes on exports to offset US tariffs -- i.e, the tariffs are in effect a tax on the Chinese government, not on the US consumer.

Most of us would like to see the elimination of tariffs and (more importantly) non-tariff barriers. How to get there from here, where the US has an unsustainable trade deficit?

  • Mish's idea of unilateral surrender would benefit the Chinese and some crony capitalists in the US, but would hurt US workers and US society as a whole. That is a non-starter.
  • President Trump's idea of brinksmanship on tariffs might work.
  • Doing nothing (a la Obama) leaves that unsustainable trade deficit, which will eventually get corrected by a massive drop in world trade, hurting the Chinese as much as the Americans.
pi314
pi314

Sanity check - The US govt debt is so huge that tariffs is like a drop in the ocean. This piece and the tariffs have nothing to do with US government spending.

everything1
everything1

LOL, they are not paying any debt down, these are politicians, they are mostly all narcissists, masters at believing their own lies, they have to be, it's the only way to get the rest to believe them. That next meeting with China diplomats? They are not going to meet with Trump, they are going to meet with U.S. corporations because they know that's who is really in charge here anyway. Politician is just a talking head that takes campaign donations which is really just bribe/kickback money.

jivefive99
jivefive99

80%+ of Federal spending is on Social Security (wildly popular), Medicare (wildly popular), Medicaid (popularish) Defense and Veterans (wildly popular), Interest on the Debt (wildly popular for the rich and foreign lenders). The people LOVE Federal spending. And if so, the revenue MUST be found to pay for this spending. Stop the borrowing and just admit it ... we are a socialist country, just like all the other countries we like to make fun of.