Tariffs Helping Real Estate?
The tariffs are just a way to get China to be more fair in their dealings. We have been helping them to grow rapidly and they plan to bury America. The Chinese government is not our friend here in the US. It is just a way to get them to negotiate reasonably. Our President understands business. I am grateful that he is not a “globalist.” He says America First but NOT America Alone.
Without getting into the knee jerk politics or a judgment on the specific tariffs, I disagree with Jerry on 2 levels. First, it depends on your global view. If you measure benefits and costs on a world view, free trade is always good. We lose 5 $40,000 a year jobs and double the income of 15 people in Viet Nam or China. Net gain for the world = more people making a better income and lower prices for consumers.
If your view is constrained to your own country, you traded the jobs of 5 people in your country to better the lives of 15 people in other countries for lower prices (and often much lower quality). The problem is multiplied when these other countries (read China) use coercive tactics to transfer the intellectual value from the US manufacturers to their own manufacturers which causes further employment erosion.
Making it a better decision for many manufacturers to employ US workers is a desirable goal. It will raise incomes of the blue collar and many white collar employees. It will also raise the cost of goods. The reason manufacturers offshore production in cost. Narrow the gap in cost and more will be produced in the US. Cost is not simply wages. There are other savings in terms of transportation, management, etc., that go away when production is US based. Making regulations simpler, understandable and enforceable and only where really necessary would also greatly help to narrow this cost gap.
From a personal standpoint, raising the wages of a worker in China by ,50 an hour isn’t more important than watching my neighbors family get foreclosed on when the parents lose their jobs. Also, I checked my records and can’t find that in my 6,000+ career closings, I have ever made a mortgage to a Chinese worker. I also can’t find any record of making a conventional loan to an unemployed US worker displaced when his or her job was eliminated by moving it to India.
I also argue that the disparity of income acts to the benefit of the billionaire owners of global companies and not to the benefit of the US worker. Get real here, Production is shifted overseas to add millions to the pockets of the owners at the cost of the same millions to the US workers. Creating demands for workers in the US puts more money in the pockets of US workers and less in the wealthy. This is why they large global companies argue for production wherever its cheapest for them or for unlimited immigration to create the same low income worker environment they find overseas.
I want my brother-in-law and my neighbors to make a decent living – and myself to continue making a living making good mortgage loans to them. I, for one am willing to bear the cost of higher prices to myself for this result.
Arguing that tariffs aren’t the best way to get there is one thing. Arguing that lowering costs is a worthy, singular goal – a process that accelerates the income of the super rich and lowers the incomes of the other 98% of America is another. In the end, lower prices mean little to the person here who makes nothing. Find me someone who use to make $60,000 as a computer programmer and now makes $15,000 as a Walmart greeter due to offshoring to India and says the tradeoff for 10% in lower prices of consumer goods was a good tradeoff for them and I’ll consider changing my mind.
Talk about drinking the Trump kool aid. That is one big assumption that short term pain will turn into long term gain. We import a ton of stuff more from China than they import from us. How do you figure it hurts them a lot more than us? How do you know this is not another Trump University, Taj Mahjal Hotel, and all those other Trump river boat gambler failures? Nothing is going to change except more tariffs on American goods which equals a consumption tax, which drains the American consumer of disposable cash, and slows down an economy and Real estate market already having to absorb higher interest rates and higher prices.
Guys…you got this dead wrong. The way to fair trade is by reaching agreements and yet we have opted out of TPP, Paris Accord, NAFTA, pretty much anything that isn’t minted by TRUMP. You guys are drinking the cool aid…you don’t need to inflict pain to get to YES. That is downright stupid logic. Please join the rest of the majority…
The last 30 years we have allowed globalism to take our country over. Make America Great Again is about common sense with fair trade, equality and helping others but not forgetting yourself. Dealing with all of this now might cause some discomfort here at home, but in the long run life will be better for the next generation. If we don’t deal with these problems now we will become a third world country. Buy American products even if they are a little more expensive; start saving so you can buy them like our grandparents did. America is a wonderful country; if you have a problem go spend time in another country and you will understand America more even with all of our faults. America works to correct their weaknesses, sins and failures. We are blessed by G-d so be thankful and quit complaining over every little thing. Don’t buy into the crap that we are racist, bigoted, self-centered, ego-driven and whatever the hype being spewed by those pointing their fingers at us. I learned a long time ago that usually those pointing their fingers calling you names are actually what they are calling you! We know who we are; let’s get with it closing our ears to the naysayers! Semper Fi!
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