What Thomas Sowell (and Libertarians) Get Wrong About Trump’s Tariffs

Standard

The point of Trump’s tariffs is to get rid of all tariffs.  I can feel the blank stares of my ideological and indoctrinated friends who are hyperventilating about a blip in stock prices and loses for billionaires.  

I get it, Libertarians, you really do not want the government to do anything and Thomas Sowell said stuff about tariffs being bad, so in unison you bleat: “Tariffs are taxes!”

But your sloganeering is not argumentation and—while I generally believe less is more in the case of government—I’m stuck here in the real world with Trump.

Economic theory has it’s place, as do ideals, and yet this isn’t a matter of Sowell said it, I believe it, that settles it.  

Marxists also believe their man’s theory will work if properly applied.  Ideological people can’t accept when their theory doesn’t work in reality, they will always insist “that wasn’t true [insert ideology here]” and continue on their merry way muttering that next time it will work—if they could just brainwash more children and eliminate more enemies of the revolution.  There’s never a reevaluation in light of the actual evidence.

True X hasn’t been tried.

So, without further ado, let’s dive into where free trade fails and Thomas Sowell after we do that…

Can Hell Be Made Worse?

After the devastating earthquake of 2010, I joined a group of young people on a trip to Haiti.  It was a Christian mission and hosted by a Haitian pastor.  This grandfatherly man had, at one point, been in business and ran a factory manufacturing clothes.  

While I’m not going to make a case against charity or giving, there is often a cost that is unseen and a greater dependency created in the end.  The Haitian pastor was forced to shutter his operation and lay off all of his employees after the combination of cheap imports and donations made it impossible to compete in the marketplace.

But the even sadder story was in a place in the country called “little Africa” where rice farmers tried to make ends meet.  No, they were never rich.  However, they had scraped a living out of cultivation up until Bill Clinton started to dump subsidized American rice on the Haitian market.  These people were desperate.  They mobbed our delivery of a bit of relief and aid.

I know, I know, this isn’t real free trade.  But it is the kind of situation we are in.  Putting our favorite theories and fandom aside, and ideals that could possibly work if all abided by the same rules or assumptions, we don’t live in that fantasy land.  In the real world, it is like Haiti where subsidized products are exported and some will disproportionately suffer consequences.  

Yes, in theory, Haiti still benefits, as a whole, from importing cheap or free stuff.  But we can also make the argument that this kind of unfair trade has undermined a situation that was already fragile.  A government that would protect Haitian industries would not let subsidized products be dumped without something stabilizing in return.

Thomas Sowell vs Donald Trump 

Sowell is a great economist and provides a good answer to ‘progressive’ theories.  His being a guest on the Rush Limbaugh show has made him a favorite of conservatives—wanting validation for their free market and small government views.

As an academic, Sowell’s work dealt mostly with economic theory and to argue against all tariffs he uses abstraction “protectionism hurts market efficiency” and that they don’t solve issues like wealth gap, that they favor special interests, and retaliation against tariffs hurts exports, and they lead to long-term stagnation.  And he may be right if we lived in a vacuum sealed petri dish.

Trump, by contrast, lives in the very messy world of politics and negotiations.  He runs on instincts and intuition, not by intellectual exercises or writing papers or creating a set of principles.  He comes in with the big ask, the threat or the bluff, trying to disrupt and even create a bit of anxiety in the other side, before eventually bringing this process to a resolution that makes all parties leave with a feeling like they’ve won.

This is how we got from the “fire and fury” rhetoric—with the political class and corporate media hyperventilating about this being a path to war—to Trump being the first US President to set foot in North Korea and then shaking hand of Kim Jong Un.  It is just his method of changing the conversation or moving the Overton window.  You can’t get from point A to point B without shaking up the old status quo a bit.

Trump isn’t ideological, like Sowell, or trying to live off a written in stone economic code of conduct.  No, when he has leverage, or sees an opportunity, he uses it.  There are many countries tariffing US goods.  And our trade deficit is enormous.  So why is it so out of line for our President to cry foul or use the threat of reciprocal tariffs in other to back these countries down and then get a better deal for his country?

Surely Sowell isn’t against pushing for the elimination of tariffs—which likely is the end game.  And, furthermore, Trump’s brazen actions are far more likely to get results than the fine professor’s best lecture on economics.  Already other countries are lining up to start talks about removing their unfair tariffs against the US.  It is a game of musical chairs and you don’t want to be the last one looking for a seat.

Power, Principles, and Persuasion 

Marxism is about the application of power, Libertarians are about strict adherence to a set of principles, but Trump is different.  He is about persuasion.

Marxism is a hammer—raw power of the mob, trying to smashing the old order to hand control to the workers, or so it claims. In reality, it’s a machine for centralization: seize the levers, dictate terms, and dress it up as justice. Think Soviet bread lines or Mao’s famines—equality morphing into control. Libertarians, by contrast, wield a rulebook, not a fist. Their creed—liberty, markets, entirely hands off—is sacred, rigid as stone. Tariffs? Sacrilege. Sowell represents this.  Marxism a power grab, and libertarianism a fortress of unattainable ideals—both are better to be left as theory rather than an approach to real world negotiations.

Marxism would’ve sparked a trade war, not talks; libertarianism would’ve let markets bleed out. Trump’s different—he’s making countries dance. China grumbles but hints at softening; the EU’s haggling too. Stocks have dipped, and Sowell’s costs loom, but the moves are now undeniable: Vietnam’s concessions, India’s play, Japan’s hustle. It’s not a system winning—it’s Trump, raw and loud, proving persuasion trumps power or principle. He’s bending the world his way, one bluff at a time.  He is about persuasion—messy, unscripted, a vibe that bends the room.  

Tariffs are the threat, but trade that is truly free and fair is the actual goal.  And Trump is further along in achieving this simply for his boldness alone.  Maybe he’s not doing it the ‘right’ way or by conventional means, yet who says that we can’t try a new approach to get some better results than we’ve been getting?  The people who have been leaving the American worker behind tot decades now?  As my 13-year-old son would say: Let him cook!

Truth Be Told—Who Really Cares About Waitresses?

Standard

Early on in this site, I spent significant time trying to explain the power of description and how bias works.   The underdogs are the ones who are assailed by less favorable language by those who have power in the group.  A good quality can be twisted into something bad or propagandists can cast the exact same actions in a very different light—which is what these two examples capture:

Only difficult when Vance suggests it?

When Trump proposed an end to taxes on tips the focus was on the ‘cost’ of allowing servers to keep more of what they earn.  But when Harris copied the idea, suddenly there is no concern for revenues lost and it is all about her “fight” for the little guy.  Likewise, when JD Vance offered a $5000 tax credit for children it was “difficult” and yet when the Harris campaign did the same it was all about newborn cuteness.  I mean, think of the children!

I suppose we should just be happy that the Democrats are finally coming around to the conservative idea of letting us keep more of our hard-earned wages.  It makes so much more sense than minimum wage hikes and giving everyone food stamps.  Of course, this means less power in the hands of the politicians, who love to run campaigns that scare their constituents about the potential loss of benefits.  

Trump had previously made the mistake of enacting an across-the-board income tax cut. This gave the media propagandists opportunity to claim it was a “tax cut for the rich” since those who pay more get a bigger cut proportional to the amount they paid.  That’s fair.  If you pay more how are you not entitled to more?  But everyone who paid in got a cut and the middle class a higher percentage, as outlined here:

According to IRS statistics of income data analyzed by Americans for Tax Reform, families earning between $50,000 and $100,000 saw their average tax liability drop by over 13% between 2017 and 2018. By comparison, those with income over $1 million saw a far smaller tax cut averaging just 5.8%.This pattern of middle-class tax reduction was also seen in key swing states.

For instance, taxpayers in Pennsylvania earning between $50,000 and $100,000 saw their tax liability drop by over 14%, while households with incomes over $1 million saw their tax liability drop by just 3.1%.Taxpayers in

Colorado earning between $50,000 and $100,000 saw their tax liability drop by over 13%, while households with income over $1 million saw their tax liability drop by just 4.5%.

Clearly everyone was getting a cut, and the middle-class got a higher percentage back than the rich, but the media coverage obsessed with the dollar amount people kept—rather than the percentage being cut—to distort the public perception.

The Trump-Vance ticket has learned and is now outmaneuvering the left.  Most people know that keeping more of their own money is efficient and much better than a new government program.  It is just that the Republicans didn’t sell it. 

But this time, with an idea to end taxes on tips and another to help all young families, the typical deceptive spin doesn’t work.

Harris had no choice but to try to outbid her opponent. 

The problem with this? 

Harris was the tiebreaking vote on a bill that sends IRS agents after waitresses.  Now, yes, the Democrats will claim that they need the 80,000 agents to go after ‘the rich’ since they know CNN, MSNBC, and NY Times would never run a story linking a poor minority woman being audited to DNC policies, yet it in this case is too hard to deny who the true beneficiaries are.

We should question the sincerity of those who only introduced their policies after the other side did.  At best, they’re like the kid who cheats on the test by copying off the smart student in their class.  At worst, they are simply saying whatever it takes to get elected and have no intention to do what are now proposing.  We can’t trust the ‘journalists’ to set the record straight or give unbiased presentation of facts.

Go listen to the interview and see if the headlines match with the reality.

The most frustrating kind of misinformation is factually based. 

They lie by structure or omission, by presenting the costs and not the benefits, and sadly it works because people aren’t able to read through it. 

They did this with Trump’s tariffs, stories zooming in on the few who were inconvenienced and ignoring the many long-term benefits.  But the criticism ended when Joe Biden took over the policy, suddenly it was silence—just necessary to push back against China and finally rebuild some of our deteriorated manufacturing strength.  Nothing changed about the actual policy or benefits, only the presentation.

Now the choice is yours, do you go with the side that originated these steps in the right direction or with those who lied about Joe Biden’s declining mental health, saying he was “sharp as a tack” until the debate made the truth undeniable and now would have us believe they’re telling the truth?

Add that Harris is trying to introduce disastrous price controls and could end up creating food shortages as happens when central planning replaces free markets. If you think inflation is bad, then wait until more food-production businesses start to close, like this fruit farm and market, due to the increased compliance costs and lack of profit. We can’t afford four more years of economic mismanagement.