This past week, President Trump announced an increase on tariffs affecting hundreds of billions of dollars in Chinese imports sparking a media frenzy.
Tariffs are not a short term solution. They are a cornerstone, a backbone, of long term, industrial policy. Nearly every other country, but for the United States, uses them or some version of them. And, nearly all other countries don’t stop with tariffs. They couple them with different tax systems, subsidy systems and regulation systems. Their best minds and entire economies are focused on industrial policy. The USA has been focused on the opposite. We have built a consumption economy. We have built ourselves as a feeding trough. And, to pay for this, we have leveraged our past and borrowed from our future.
Rebuilding the United States economy has to be a very long term project. This is a marathon. It isn’t a sprint.
It’s a long view of what’s best for America. So, when you hear the talking heads panicking about the “now”, ignore it. The sky is not falling. They will want you to think that.
Who is “they”? They are those who profited from the de-industrialized USA. Those who ate the fruit from the hollowed core of our beautiful heartland. And they are legion. They is not a simple reduction to a single state either. China, for example, is not to be blamed for building their industrial economy and fighting hard to keep it industrialized. It’s only natural and intelligent that they have and are. It’s not natural nor intelligent for the USA to have abandoned making things and adding real value to the world. And so it’s time to change.
Trust that the re-industrialization of the United States is the best policy for the United States and that short term fear and scare tactics are just an attempt to get us from focusing on that prize.
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