I think our duty to a representative and limited government, a Constitutional Republic, doesn’t end when we exercise one day of democracy, Election Day and the vote. And if our candidate makes mistakes it’s up to each of to speak out. Not to criticize, but to educate. To ask him to do better. The following is an attempt to apply Principle to the specific issue of tariff’s and the over arching Principle of constitutionally limited government.
Congrats: Any citizen who consumes (buys) goods made in China, you are going to pay a 35 to 50% cost increase for everything you buy from China…that’s inflation.
To say it an other way, China does not pay this tariff, consumers pay it.
If that’s how my government helps, please stop.
I know, the next argument supporters will make is repatriating American manufacturing.
Consider why businesses moved their production overseas in the first place: Certainly lower cost labor, but also less foreign government regulation, and low tax rates, resulting in lower cost of manufacturing and higher earrings.
Ask the same question but from a different perspective: why did business decide to move production out of America? High costs of regulation and high tax rates. In other words, our own government created an untenable business environment through its bureaucracy and high tax rates.
Higher tax rates are caused by excess federal spending. Higher taxes are spurred by congressional spending. If they didn’t spend so much, the government wouldn’t have to take so much of our income through taxes. Turn the kaleidoscope around and you get a new view…
In an attempt to justify a bloated bureaucracy (the “more government is always better” mentality) and excessive federal spending, our own government decided to hurt citizens and private industry through higher taxes and more regulation. Well, this same mentality (bigger government) caused businesses to move manufacturing overseas in the first place.
Consider the absurd irony of these tariff’s: Our government is trying to solve a problem they created, an unhealthy business environment of high tax rates and regulation, by creating an even more oppressive consumer environment (higher tariffs.)
DOGE is a brilliant idea because it targets excessive government spending. The Chevron decision reduces the negative impact of federal regulatory agencies on business. These are two of the most positive developments during the current Administration. However, the same administration levies tariffs on its citizens and goes on to promote a Big Ugly Bill that adds $2.5 Trillion of new debt, via excessive government spending, on our children and grandchildren.
These bizarre tendencies, these internal contradictions are symptomatic of all administrations because they are not acting according to Principle, but self-enhancement.
A conditional principle(one subject to manipulation) is just an opinion. True Principle requires an honest assessment of the effects of our actions. AND the discipline to act according to that Principle. For my money, the Principle is the sanctity of your individual rights to life, liberty and ownership of property. That requires a severely limited government. Not a government that expands insanely as has this and every government since Reagan.
Jay Davidson is founder and CEO of a commercial bank. He is a student of the Austrian School of Economics and a dedicated capitalist. He believes there is a direct connection between individual right and responsibility, our Constitution, capitalism, and the intent of our Creator.