Showing posts with label tariffs. Show all posts
Showing posts with label tariffs. Show all posts

Thursday, November 21, 2019

Expect Impeachment But No Conviction


After three sometimes gripping, at time contentious, sometimes pedestrian days of hearings by the House Intelligence Committee, the questions to be answered are, Did Donald Trump’s actions rise to the level of an impeachable offense? And, given the Democratic Party majority on the committee and on the Judiciary Committee which would have to pass impeachment charges, and its majority in the full House of Representatives which has to affirm the charges which would then be sent to the Senate for consideration, is there any prospect that the Republican controlled Senate will vote to convict and thereby remove Trump from office?

Yes, the House will vote along party lines to impeach; no, the Senate will not vote to remove.

There was no smoking gun testimony as there was during the Watergate hearings and impeachment inquiry. No secret tapes (as far as we know). Nothing and nobody to testify to direct person to person dialogue with Trump about his actions to withhold congressionally approved military aid to an ally unless Ukraine investigated Joe and Hunter Biden.

Unless, and it is a big unless, former national security director John Bolton chooses to testify. Assuming, of course, that he would finger Trump for actions specifically in violation of his oath of office. 

At the end of the day Trump will get off with no more than a slap on the wrist. Like a cookie jar pilferer who gets caught by an admonishing mother, he no doubt will return to equally provocative acts, believing that as long as the Senate remains Republican controlled he will be immune from removal.

Here’s another question central to our democracy—when, if ever, will Republicans return to their long held beliefs? When will they once again condemn executive office overreach? When will they recall their opposition to a ballooning national debt and their desire for a balanced budget? When will they again champion unfettered foreign trade not hamstrung by tariffs? When will they advocate for strong and respectful international alliances? When will they rebuke a president who trusts Russia more than his own intelligence agencies?

Is the answer only when Democrats regain the presidency?

Have we so tribalized our politics that we cannot accept any action by a president from the opposition party, and the corollary, that we blindly accept whatever “our guy (or  gal)” does?

Has our politics become so toxic that anyone we disagree with immediately becomes the object of smear campaigns and physical threats? 

Don’t expect answers from me. I’m as perplexed, as depressed, as woebegone as you. 

Monday, July 9, 2018

Supreme Court Aside, Why Do Evangelicals and Republicans Stay Silent on Trump?


Ever the showman Donald Trump is expected to reveal Monday night his next conservative, court-packing nominee for a lifetime appointment to the Supreme Court. It is his constitutional imperative to select a nominee; it is within his rights and privilege to choose a jurist he believes will decide the law based on the values and principles he espouses. Forget for a moment that Trump waffles on principles and displays no values, especially as they relate to family. 

I don’t agree with them, but I can understand why evangelicals support Trump. He promised them a conservative federal court. He is delivering on that promise, thanks in no small measure to Mitch McConnell’s obstructionist strategy to deny a hearing to President Obama’s nominee, Merrick Garland. 

Support, however, does not mandate blind, unswerving allegiance. It does not prohibit conscientious objection to policies that are aberrant to their Christian faith. They should not have to twist Scripture inside out to justify abhorrent behavior. 

The Catholic church, after all, is just as dedicated to the abolition of abortions, yet its leadership, all the way up to the pope, has been intensely vocal in criticism of Trump’s behavior towards migrant families. 

So I am puzzled by the silence flowing from an evangelical community that is accustomed to hearing fire and brimstone penalties to anyone who acts contrary to god’s and Jesus’ admonitions.  

Let me reiterate: While I do not condone one-issue voters, I recognize their right to follow their narrow public consciousness. I have too many friends who voted Trump because they perceived his support of Israel stronger than the alternative, reinforced by his shift of the American Embassy from Tel Aviv to Jerusalem. 

They remain friends. We try not to talk politics, as I cannot condone their silence, and that of millions who I do not personally know but who profess to be god-fearing, in the wake of Trump’s flagrant abuses and miscalculations. Those millions include elected Republican officials. 

Where is the outcry, the condemnation, or at least an expressed revulsion at a zero-tolerance policy that ripped children from their parents? Should they not be repulsed by the ineptitude of their government not being able to expeditiously reunite families?

Even Democrats acknowledge industry is weighted down by too many regulations. But where is the sense of outrage from Republicans over the revocation of laws that protect our water, land and air quality? 
Do rank and file Republicans, along with Independents and Democrats who voted for Trump, not see that the tax bill provides meager relief to the vast majority of Americans while rewarding the wealthy and corporations with riches beyond their expectations? 

As other countries respond to Trump’s tariffs by targeting products from states he won, why are they silent when their livelihood is at stake? It’s not “America right or wrong” time when it is painfully obvious to all but Trump that winning a tariffs war is not easy.
Do they not see Trump was snookered by the North Koreans, that his boast that we could sleep more easily now because Kim Jong-un agreed to denuclearize was as empty as his claim to educate the gullible and desperate at Trump University? 

And what about our stature in the world? Do they not understand that “America First” runs counter to the principles and leadership embodied by the United States after World War II? That it was that global, communal ethos embodied by NATO and the Marshall Plan that enabled Western European civilization to reconstruct itself after the war’s devastation, that it forged successful economic and political recoveries in Japan and South Korea after two devastating conflicts? 

How do they square Trump’s campaign rhetoric that he is a big builder who will draw up a huge infrastructure investment list with the reality he not only has not initiated a building program but he also has stymied perhaps the most important project, construction of a new rail tunnel under the Hudson River critically needed to support the Northeast which represents more than 10% of the nation’s economy?

Despite Trump’s repeated efforts to hamper it, the Affordable Care Act remains popular. How can they justify a disregard for the health needs of millions? Isn’t caring and concern for the sick part of their religious creed? How can they remain silent when the Trump administration, in support of infant formula manufacturers, disregards scientific data that breast milk is better than baby formula, and compounds the heresy by blackmailing other countries to follow its dictates at the United Nations-affiliated World Health Assembly? How humiliating that Russia—Russia!—had to save the day for truth and science! (https://nyti.ms/2J0WJuV)

And speaking of Russia, how can evangelicals and ordinary Republicans acquiesce to the bromance Trump has with Vladimir Putin? Democrats are not demanding an invalidation of the 2016 presidential election. They are demanding admission that Russia interfered with it. They are demanding Trump instruct appropriate federal agencies insure it doesn’t happen again. To date Trump has not. 

With all that Trump has accomplished in undermining the values and doctrines of America, Republicans have steadfastly stood behind him. It is foolish to presume they will abandon him in the 2020 election. 

The only way to unseat him will be if enough citizens who failed to vote in 2016 realize their voices can and must be counted to avoid a decades-long descent into despair. 

In 2016, roughly 100 million eligible voters stayed home. 

Friday, March 9, 2018

Lessons From Tariffs, Import Quotas and Walmart


Let the trade wars begin.

In an effort to resuscitate American industry, Donald Trump launched the first salvo Thursday in what may become a global trade war by imposing a 25% tariff on imported steel alongside a 10% tariff on imported aluminum. How the world will react, and if Trump has a counter-counterattack, remains unclear at this time.

It is not the first time America has sought to level off its unbalanced trade, particularly with China and other countries that flood—some would say, dump—cheaper alternatives to domestic U.S. production. In a global economy, manufacturers seek out the least expensive raw materials, labor and finished products. Too often, that means consumers at home and abroad think American made goods are overpriced. 

Heck, relocating supply lines has long been practiced by American industry. Textile companies fled the North to establish plants down South where non unionized workers earned less than their northern counterparts. But even lower southern wages could not compete with foreign laborers in Latin America and Asia. Executives fluent in global sourcing minutia shifted manufacturing from country to country to stay below import quotas established by the American government.

Trump champions America First, so it is not surprising he would favor steel and aluminum tariffs, particularly since underutilized plants are mostly located in Rust Belt states Trump won in 2016 and needs to win in 2020—Ohio, Pennsylvania, West Virginia, Michigan, Wisconsin. It seemingly does not bother Trump that prices of many goods that include steel and aluminum components will rise and could cost more jobs in related industries than would be created by the metal makers.

Trump, who spoke out against Chinese dumping practices years before his presidential run, was not the first business titan to see the danger of a depleted American manufacturing base. Back in 1985, Sam Walton positioned Walmart as an advocate of “Buy America.” 

I went to the source—my bound copies of Chain Store Age—to review how the retail industry and I reacted to import quotas and to Mr. Sam’s defensive ploy to combat a growing criticism of his company, at $6.5 billion, the seventh largest general merchandise chain, a little less than a third the size of $21.7 billion Sears, Roebuck and Co. and Kmart’s $21.1 billion. (Today, Walmart is the largest retailer in the world with sales of $485.9 billion in the recently concluded fiscal year. Sears and its now-sister company Kmart have a combined volume of less than $17 billion). 

Not surprisingly, retailers, who normally supported Reagan administration policies, railed against quotas. Under the headline, “Protectionism: Policies leave chains vulnerable,” CSA reported in September 1984 that tighter import quotas fueled dramatic price increases in many merchandise categories. Kmart, for example, estimated the cost of goods from China increased 25%. 

Fast forward to Trump’s imposition of tariffs and the reaction is no less muted. Thursday, National Retail Federation president and CEO Matthew Shay said, “A tariff is a tax, plain and simple. In this case, it’s an unnecessary tax on every American family and a self-inflicted wound on the nation’s economy. Consumers are just beginning to see more money in their paychecks following tax reform, but those gains will soon be offset by higher prices for products ranging from canned goods to cars to electronics.

“The retail industry is extremely concerned by the administration’s apparent desire to ignite a trade war, where the net losers will be the very people the president wants to help. On top of steel and aluminum tariffs, retailers are troubled by the direction of the ongoing NAFTA negotiations and the threat of additional tariffs on consumer goods from China. The true greatness of America cannot be realized when we build walls blocking the free flow of commerce in today’s global economy.”

Importing helped catapult the Bentonville, Ark.-based company into a global powerhouse. To be sure, few if any of Walmart’s competitors disdained importing. But Walmart’s heralded logistical and technological efficiencies accelerated its growth.

When Sam Walton started speaking publicly about imported goods in August 1984, his company was a burgeoning juggernaut but still not near the size of Sears and Kmart. He framed the challenge as dual pronged—reduce the trade deficit by buying American made products, but if that is not possible, develop products and jobs in Mexico, Central America and South America to “improve the standard of living for the average citizen in Central and South America.” 

Within a year Walton launched a “Buy America” program. Skeptics abounded. The program persisted, but in December 1992, five months after Walton died, NBC Dateline confronted company CEO David Glass with allegations products marketed as Made in America really were imported from Bangladesh. The adverse publicity led to the program’s demise.

Several years ago, Walmart started a Made in America program. It proudly touts a claim that “two-thirds of what Walmart spends on products sold in U.S. stores is made, sourced, assembled or grown within the USA.” That is according to our suppliers,” Walmart acknowledges.

That provides a wide definition of American made. (Sales last year in domestic Walmart stores and Sam’s Clubs totaled $365.2 billion.) It cannot be argued that Walmart’s expansion and buying practices did not gut many a small town of local retailing and small malls, as well as contribute to the closing of many domestic manufacturing plants supplanted by foreign suppliers. 

But it is equally indisputable that shopping at Walmart has stretched consumer dollars and helped keep inflation in check.

It’s too soon to say what lasting impact Trump’s tariffs will have on sales, on inflation, on employment. But it’s safe to say they will not markedly change our balance of trade with the rest of the world.