01 March 2018

Man of steel

For much of American history, Republicans were the protectionist party of high tariffs while Democrats, representing those whose businesses and jobs depended on imports, espoused free trade. In 2018 it looks like Republicans will take the lead in opposing tariffs on imported aluminum and steel proposed by a Republican president. While Senator Rubio was howlingly wrong some time back when  he said that the GOP had always been a free trade party, he was true to recent trends in the party. Republicans represent salesmen rather than producers these day, and the salesmen complain that the tariffs will make many products more expensive and difficult to sell. That is just about the gravest sin imaginable to the Republicans' consumerist ideology, according to which consumer choice trumps (pun intended) every other concern. Accordingly, many observers scoff at the national-security justification for the tariffs offered by the Trump administration, arguing that defense industries' dependence on imported steel should be no cause for concern in a world crisis, since we get most of our steel from friendly nations. This blithe dismissal seems to overlook the possibility of hostile nations interdicting trade, for one thing, but in any event, to the extent that there already has been a trade war of sorts over steel, the free traders appear satisfied that America has lost and that revanchism is futile. Among the more libertarian critics a fatalistic attitude prevails according to which Americans should concentrate on making and exporting the stuff we don't need government action to help sell, regardless of whether there might be an objective national benefit to self-sufficiency in any field of production. The predictable cost-benefit analyses that see tariffs benefiting few while burdening many more simply don't allow for considerations of national interest, failing to acknowledge that a nation and the Market are two different things. While no one should take it for granted that the Trump tariffs will benefit the nation -- they probably won't accomplish much without simultaneous government support for increased domestic production --  too many people are reacting to them as if the debate was over before it even began, because tariffs are always bad.  Because trade policy has for so long been determined by ideology, it's hard to know where to find an objective opinion. You probably won't find one in the op-ed columns or from businesspeople with too intimate a stake in the game, but I wonder what Lin-Manuel Miranda thinks....

No comments: