Posts Tagged With: Trade

Patriotism or Idolatry?

America has bought many Asian goods for the past many years. However, as we can see, America is not the only nation that buys Asian products. We see in various places that products have tags that say “Made in China”, or “Made in Taiwan”, etc. Many Americans, though, resent the fact of there being so many Asian products coming inside their country. This is because they have been configured in a way that makes them believe this is bad for the country. They believe it makes them lose their jobs. I think that the fact of them being so patriotic has led them to believe that having more American goods in their nation is better for the nation. I am not saying this is a bad thing, but implying that this may not be necessarily true. Though, every nation is patriotic, America is the most patriotic nation I have ever seen. Ever since the child begins to attend school, it is taught to pledge allegiance to the flag of the United States of America, and is almost forced into believing in the “goodness” of its government, without there being a bad side. Sometimes this patriotism has led to the killing of other people from other nations. Not to mention the gigantic hatred against Muslims, or Arab countries.

I believe that taking your nation in your heart is right, but idolatrizing your nation takes you into sudden error, and racism. This has not been different in the envy against Asians that export so many goods into their nation. Tariffs are imposed with the excuse of protecting you, when they are nothing but sales taxes that only benefit the government. (The Lies of Trade). I believe that when the government refers to the economy of its nation, it is also referring to its political good. Have you ever asked yourself why politicians are so rich? Where do you think they get the money from? Apart from counterfeiting, they use taxes. (Freedom from Mammon). One of the reasons, and I believe the most important reason why the government has made people believe why tariffs are so necessary, or why having so many imported goods from other nations is not good for the nation is because it looks after its own good, not the public. Let me put it to you this way, do taxes benefit you? Does inflation benefit you? Do higher prices benefit you? No, no, and no.

What does it mean to have more imported Asian goods inside of your nation? The answer is competition. Not nationally, but individually. If your nation only had American goods, then America wouldn´t have to worry about competing well, and therefore, prices would be higher. However, if you have more imported Asian goods, or any other nation´s goods inside of your nation, then competition would get harder, and companies would be forced to lower their prices benefiting you. Nevertheless, when tariffs come along companies are protected, forcing them to not compete better, forcing imports to have a higher price, forcing you to pay higher taxes, and forcing you to buy more expensive goods. Do you see the picture? Who benefits?

The important thing is not resenting Asians, because of their imports that are benefiting you, but understanding the trade process. Once Asians sell to America, they receive dollars, and where do you think they will spend the dollars? America. They can buy from America goods, including its exported goods.

Do you think that the trade process between two individuals magically changes when is shifts to two nations? The truth is that the trade process never changed. What changed was the ideas in the minds of the people due to patriotism, but one that is erroneously founded.

Categories: Economics | Tags: , , , , | 5 Comments

The Lies of Trade

Jual Beli

When we talk about quotas, we also talk about trade. Governments impose them in order to limit trade. In a statist point of view, this is made to help protect the domestic production from foreign competition. Since this is government invented, then the government makes sure to teach the public this is the way to go.

As I have mentioned before, people are egocentric. In my essay Love Defeats Ego, I explain that humans try to feel part of something important, and therefore with an identity. When it comes to nations, this doesn´t change. I believe that no matter in which nation you were born, every nation tries to implement and fill its people with the pride of being “American”, or “Russian”, or “Chinese”, or “Mexican”, or “Canadian”, etc. Being born in a certain country, and acquiring those teachings since childhood creates racism in the heart, whether we want to accept it or not. The opinion of believing that my race is better than yours, because we have such things that you don´t is nothing but racism, ego, pride, and arrogance. It is the same rejection of hating each other, or keeping our distance. That is why we have borders.

What happens when a state from your country wants to trade with another state of your country? People don´t care. This is because they feel it is part of themselves. They say, “It´s my country, therefore my country, and I benefit”. When we understand that a trade is made in order for both sides to benefit, then we have no problem with the trade. However, when it comes down to trading internationally, people begin to worry. Like I said before, quotas are government invented, and therefore the government makes sure the public believes in that system. If we live in an egocentric world, don´t you think the government would also be self-interested? Governments were made to help, and look for the public. The problem begins when the heart of the politicians and bureaucrats begin to look at the money.

Let me explain how a trade is done from your side of the street, to the other side of the street. You have money, and you are willing to pay for what your neighbor is willing to sell you. You come to an agreement, you trade, and both of you are now happy. Not only this, but there was economic growth. Your neighbor is now richer with money, and you are richer with goods. Both sides benefit. Now, let´s bring it to a larger scale. You want to buy a good from another nation, and that nation is willing to sell it to you. You have seen the product, and it´s better than the one they are producing in your nation. This means that you will save money, it will work better, and last longer. Does it benefit you to make the trade? Yes. Does it benefit your country? Yes. Let me explain why. When the people on your country find that there is a certain production on another country that is better than the one where you live in, the people on your country will prefer the goods of the other nation. This is because it will save them money, and make them richer in goods. Both sides now benefit. This would happen if certain elite groups, and the government wouldn´t interfere. So, is free trade across a country border economically different from free trade across a national border? No. Notwithstanding, now that the companies have seen the public is buying more from the other nation, they are not liking it. The company on your country will now have three options. Compete, and better its production, or bribe the bureaucrats and politicians to pass down laws that restrict trade by imposing import quotas making it harder, and more expensive for you to buy the foreign product, and almost making certain that you will most likely buy the product from your country, or go out of business. A reasonable answer according to the twisted logic of man would be choosing the second option.

Do you see the picture? It is a pity to see how governments make sure to give children teachings that make them not think for themsleves, and believe eveything the govenrment tells them without a single doubt. Governments pass the laws, because of the bribe money they recieved from the banks and companies, but at the same time lie to the public and children telling them it is to benefit you.

Proverbs 22:6

Train up a child in the way he should go, and when he is old he will not depart from it.

This is why I go back to telling you about ego. It is selfishness that moves the companies, banks, and governments from your and my country. When you realize that it is ego that moves them, do you think it benefits you or them?

Do import quotas benefit most voters economically? No. Even so, how can anyone be trusted when the force that is pushing them is ego and not love? It is the love for oneself, and the love for money that injures and kills.

John 12:25

He who loves his life will lose it, and he who hates his life in this world will keep it for eternal life.

Categories: Economics | Tags: , , , , , , , | 5 Comments

The Dark Side of Tariffs

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In my last essay (More Competition, Higher Quality), I wrote that tariffs were not good for the countries. It is interesting to note that we allow free trade (tax free) from state to state thinking it is good for the country, but complain when the trade is made from country to country. We have been taught or told that jobs are reduced when companies from other nations compete better in our own nation. This is why laws are passed down by the money of businesses that make it harder for trade to be made due to the tariffs (taxes) imposed on them.

Some of the arguments that are told favoring tariffs are the following. They, as you will see, are not backed up.

People confuse immigration with imports. Notwithstanding, goods don’t vote. It is different when a person crosses the nation and has a mind of his own, than when a good crosses without being able to think for itself. Goods don’t bring cultures, and they do not make decisions. Goods are only tools that can be used to improve the lives of people.

“Keep the money and jobs at home.” They say people lose their jobs, because of their failure to compete better. The truth is more jobs will be made, because of export companies. Not only that, but customers would live a more abundant life, because of the reduced costs. Even if jobs are lost, others gained. It is also better for a company that is not serving you with good quality, and honesty as a customer to close up.

I would like you to think about this. People need money, and they get it by working. This means that they serve customers, and in order to keep the customers happy and their wallets big, they must produce goods with a higher quality. However, there is too much competition which makes it harder for businesses to compete, some may even go bankrupt. So they think, if competition is reduced, their lives would be easier.

This is when they pay congress to make laws (tariffs/taxes) that favor them, and reduce competition. What happens when there is no competition? What if you were the only person selling milk in your town? You would be able to charge a very high price, because of the demand. Though, it wouldn’t have to be of good quality, because customers have no other choice than to buy from you. What if the public found out that there is someone else from a close town selling milk with a better quality and a lower price? They would realize that you were ripping them off. From whom would they prefer to buy? Suddenly, you get mad. You need to find a way that would force the public to buy from you, even though you’re ripping them off. You go on to paying the mayor of the town, for him to pass a law imposing a tariff (tax), that would make it harder for the other milk seller to sell his milk in your town. Even if the other seller gets to sell his milk in your town, the milk would cost more than yours, because of the tax imposed on him. Then more people would buy from you, and customers would suffer from a reduced quality in their living standards.

In this analogy, I want you to realize that it wasn’t towns that were trading, but it was two people. Nations don’t trade, people do.

I also want you to see that when imports are reduced, exports are reduced. Gains are lost from other the nation, but also from your nation. Why? When you impose a tax on the other nation making harder for it sell on your nation, profit is reduced. When the other nation’s profit is lowered, it will not have enough money to buy from your exported goods. Therefore, you will not be able to sell as much in the other nation either. Both sides lose.

Now, if you still have the ego way of thinking that says “they’re not us”, what if they did it to you? What if it was the other way around? What if it was your nation that would have to pay high taxes in order for you to sell on other nations?

Tariffs reduce imports and they reduce exports. With tariffs both sides lose. They offer a low standard of living. The only winners are the bureaucrats and the businessmen that payed the bureaucrats. The question is, will you keep favoring tariffs (taxes)?

The Government or The Public? Make Your Choice! Part:I 

Categories: Economics | Tags: , , , , , | 3 Comments

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