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Saturday, September 20, 2003
My letter to President Bush RE: Steel Tariffs.
Mr. President, you have done some great things in your term in office. However, you have also done some downright silly ones. I would rank the endorsement of a Medicare prescription drug benefit high on that list. But perhaps the most egregious mistake has been the placement of tariffs on imported steel. This is an example of pandering to a special interest group. Honestly, I expect more from a Republican president who professes to be a disciple of supply-side economics. Lately, I see more Keynesian intervention than "laissez-faire", Mr. President.
Let's think about this for a minute. Protectionism leads to higher costs domestically. This, in turn, drives up the cost of production where the tariffed product is concerned. Steel, for example, is used in manufacturing (cars, planes, etc.) To remain competitive, companies must charge more for their product to compensate for the higher cost of the material. Fewer products are purchased. Production is cut. So are jobs. The tariff ends up being counterproductive.
Other camps contend that protectionism results in a net gain in jobs, but this does not hold up under scrutiny. The manufacturing industries of America have been the hardest hit during the recession. Increasing their costs makes no sense. Mr. President, reducing, or eliminating steel tariffs is more prudent, and is more consistent with your reputation as a tax-cutter. I realize I am not one of your advisors, but I hope you see the sense in such a suggestion. It could end up saving your job in 2004.Labels: Archives_2003
.: posted by
Dave
8:18 PM
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