Drudge Retort: The Other Side of the News
Friday, March 15, 2013

A group of Democratic lawmakers on Thursday urged President Barack Obama to insist on keeping a 2.5 percent tariff on Japanese autos and a 25 percent tariff on Japanese trucks if the United States and Japan enter into free trade negotiations. "In an industry with razor-thin profit margins, the elimination of the 2.5 percent car tariff (as well as the 25 percent truck tariff) would be a major benefit to Japan without any gain for a vital American industry, leading to more Japanese imports, less American production and fewer American jobs," the lawmakers said in a letter to Obama.

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GalaxiePete

 

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To me the big question is why keep them? Can't the American auto companies compete? I know Japanese cars made in Japan are to FAR higher tolerances than the ones they make here. The ones the Japanese make here are to FAR higher tolerances than the "Big 3" here. Higher Tolerances mean better quality.

I know some very factual things about the automakers and tolerances and at least some of the whys. Like for example the only reason the tolerance is lower here on Japanese cars is the American workers and that the Big 3 have twice the tolerance the Japanese allow on many items.

To me, higher tolerances + lower prices means get your act together Big 3 or go away like the dinosaurs. Quality, Fit and Finish...

#1 | Posted by GalaxiePete at 2013-03-14 05:15 PM | Reply | Flag:

and why not tarrifs on China produts? Typical Dems, they have a good idea on something and do a half-ass job of it.

#2 | Posted by path at 2013-03-14 06:29 PM | Reply | Flag:

It's time to place import duties on Chinese goods.

Bring our jobs back home.

USA! USA! USA!

#3 | Posted by HeliumRat at 2013-03-14 08:16 PM | Reply | Flag:

It's time to place import duties on Chinese goods.

The Chinese won't let us do that.

#4 | Posted by goatman at 2013-03-14 08:18 PM | Reply | Flag:

"and why not tarrifs on China produts? Typical Dems, they have a good idea on something and do a half-ass job of it."

Do you have any idea of what would be required to put tariffs on Chinese goods?

#5 | Posted by danni at 2013-03-14 08:18 PM | Reply | Flag:

Political backbone?

#6 | Posted by HeliumRat at 2013-03-14 08:26 PM | Reply | Flag:


Do you have any idea of what would be required to put tariffs on Chinese goods?

#5 | Posted by danni

Yeah, it would require our politicos to cooperate long enough to pass tariffs.

#7 | Posted by Whatsleft at 2013-03-14 10:31 PM | Reply | Flag:

#7 -- it wouldn't work. China won't allow it. They would either devalue their currency or call in our debt to them, or both.

They own the US

#8 | Posted by goatman at 2013-03-14 10:39 PM | Reply | Flag:

They would either devalue their currency or call in our debt to them, or both.

They couldn't do both. They buy US debt to keep their currency devalued, if they sold the us debt or even stopped buying, the value of their currency would rise and would cripple their economy far more than they would hurt the us.

Any resultant increase in their currency would make their crap more expensive here and the resulting downturn in our economy from rising interest rates would further hurt their export to us even more.

If they stop buying our debt, where would they stash their surplus cash? Europe?

Besides, they hold such a large amount of US debt, they would be foolish to do anything such as dumping treasuries that would devalue the treasury bond market as they would be hurting themselves.

#9 | Posted by 726 at 2013-03-15 08:09 AM | Reply | Flag:

China won't allow it. They would either devalue their currency or call in our debt to them, or both.

#8 | Posted by goatman

And lose their biggest customer? I doubt it.

#10 | Posted by Whatsleft at 2013-03-15 11:17 AM | Reply | Flag:

Why Honda's for example use more American made parts and are assembled in American factory's then the domestic car company's we have. Unlike the GM factory's that they have shipped several factory's over to china and Mexico. In 2012 they shut down one American plant in Wisconsin to save money, then made their workers train their replacements in china. These evil Japanese cars are hands down more American made then any domestic car company.

#11 | Posted by zack991 at 2013-03-15 12:55 PM | Reply | Flag:

Obviously, they got a call from Detroit with a promise of "funds".

#12 | Posted by fresno500 at 2013-03-15 03:15 PM | Reply | Flag:

We should have tariffs on any foreign product made with substandard wages.

It's probably too late to do it now, but if we had done it years ago, like in the 80s, we would be in far better shape today. Sure we'd have a lot less cheap disposable crap, but that's not a bad thing either.

Instead washington catered to wall street as usual, and the race to the bottom continued.

#13 | Posted by SpeakSoftly at 2013-03-15 03:56 PM | Reply | Flag:

Japan is a highly protectionist country. They use rules, which change regularly in a "Kafkaesque" manner, to block imports. They also impose tarrifs and audit everyone that buys foriegn cars. They also paid Reagan millions in speaking fees as a reward for opening up the US market to Japanese cars.

But many of their cars are now made in the USA. The justification for tarrifs on such products requires exceptionally selfish, hypocritical thinking. Otherwise tarrifs on imports are just good for the country and Japan knows that, even if we don't

#14 | Posted by nutcase at 2013-03-15 04:39 PM | Reply | Flag:

"and why not tarrifs on China produts? Typical Dems, they have a good idea on something and do a half-ass job of it."

Why not leave it all up to the consumers? If they don't want their dollars going to China, they can buy american-made goods.

"We should have tariffs on any foreign product made with substandard wages."

Substandard wage: Any offered wage that is below the standard accepted by the workers.

IOW there are no products made with substandard wages, because workers don't work for substandard wages.

"But many of their cars are now made in the USA. The justification for tarrifs on such products requires exceptionally selfish, hypocritical thinking. Otherwise tarrifs on imports are just good for the country and Japan knows that, even if we don't"

No, tarriffs are good for US automakers forced to employe union labor at 130% of market value who still need to be competitive. Tarriffs don't help me even one little bit. In fact they are an imposition on my freedom to buy whatever product suits me best by arbitrarily altering market conditions. I probably wouldn't buy a Toyota Tundra, with its sissy little 5.7L engine-not when I can get a GMC with a 6.2L (6.7L if you go Diesel), but if I were able to do so at a lesser cost it might alter my decision calculus.

#15 | Posted by madbomber at 2013-03-15 05:56 PM | Reply | Flag:

Why not leave it all up to the consumers? If they don't want their dollars going to China, they can buy american-made goods.

#15 | Posted by madbomber

Because most people only act out of short term self interest, it is the government's job to act out of concern for the long term well-being of a society.

People will usually choose the cheapest option. They don't realize or care if the cheapest option will eventually lead to the destruction of their own economy.

Tariffs alter market conditions it's true - but that's in RESPONSE to the market conditions being altered by foreign workers willing to work for rice and water. The only freedom you're losing because of tariffs is the freedom to screw your own country so you can save money.

#16 | Posted by SpeakSoftly at 2013-03-15 06:19 PM | Reply | Flag:

Free trade is the cornerstone of world growth.

#17 | Posted by DavetheWave at 2013-03-15 06:52 PM | Reply | Flag:

"Because most people only act out of short term self interest, it is the government's job to act out of concern for the long term well-being of a society.

People will usually choose the cheapest option. They don't realize or care if the cheapest option will eventually lead to the destruction of their own economy."

In other words, the people don't need freedom, they need a shepherd. Smoeone to make sure they don't make the wrong decision.

It's a good thing I have people like you willing to look out for me. Make sure you remind me to breathe once in a while, in case I forget.

#18 | Posted by madbomber at 2013-03-15 06:58 PM | Reply | Flag:

Why not leave it all up to the consumers?

Never seen the experiment where the put the rat in the cage and if it presses the button it gets the cocaine pellet?

It's not clear to me how the collective irrational whims of millions of consumers will add up to rational policy. But feel free to try and explain it.

#19 | Posted by snoofy at 2013-03-15 07:00 PM | Reply | Flag:

In other words, the people don't need freedom, they need a shepherd. Smoeone to make sure they don't make the wrong decision.

#18 | Posted by madbomber

Try again. People need a limit on their freedom at the point where it hurts other citizens. The freedom to buy cheap foreign goods and destroy american jobs hurts everyone here, and it's the government's role to protect citizens of this country. That's what tariffs do.

#20 | Posted by SpeakSoftly at 2013-03-15 07:32 PM | Reply | Flag:

In other words, the people don't need freedom, they need a shepherd. Smoeone to make sure they don't make the wrong decision.

What people need is a measured dose of both.

#21 | Posted by snoofy at 2013-03-15 08:03 PM | Reply | Flag:

"Try again. People need a limit on their freedom at the point where it hurts other citizens. The freedom to buy cheap foreign goods and destroy american jobs hurts everyone here, and it's the government's role to protect citizens of this country. That's what tariffs do."

You're not protecting me when you force me to buy an american product over a foreing one in order to ensure that an american unskilled worker can earn a wage far above what his labor is actually worth. What you're doing is buying that workers vote.

If you're going to be a fascist, at least be honest about it. That's way more respectable than trying to pretend that you're fvcking me for my own good.

#22 | Posted by madbomber at 2013-03-15 08:06 PM | Reply | Flag:

"What people need is a measured dose of both."

You'll need to refresh my memory as to the last time a flock of sheep voted for their shepherd. But you've never concealed you're fascist tendencies. The obligation to act as shepherd is the noblesse oblige of the modern progressive.

#23 | Posted by madbomber at 2013-03-15 08:09 PM | Reply | Flag:

You're not protecting me when you force me to buy an american product over a foreing one in order to ensure that an american unskilled worker can earn a wage far above what his labor is actually worth. What you're doing is buying that workers vote.

#22 | Posted by madbomber

What your doing is protecting your workforce, your tax base, and your country, which is what you are sworn to do when you take office.

No one is forcing you to buy anything. Tariffs just level the playing field between american workers - who live in an expensive country, and third world workers.

And tariffs aren't there to protect YOU and your wallet. They exist to protect your entire society from downsliding into a third world status.

Free trade makes all workers compete on the same playing field. But when living in one country costs 10 times as much as living in another, the workers in the more expensive country lose their jobs. And their houses. Which is where we are now. All you have to do to see the effects of free trade is to look at what has happened over the past 20 years. Tariffs wouldve prevented a lot of it. Wall street would have less money because wall street loves cheap labor and would want slaves if it were legal, but the middle class would be far stronger and with it the entire economy.

If you want honesty, you should admit that you care more about your own wallet today than the economy of your country tomorrow.

#24 | Posted by SpeakSoftly at 2013-03-15 08:19 PM | Reply | Flag:

I favor tariffs and right to work.

#25 | Posted by Huguenot at 2013-03-15 09:11 PM | Reply | Flag:

"What your doing is protecting your workforce"

No. What you are doing is subsidzing that segment of your workforce that has an economic value commensurate to that of your average developing world child. What you're doing is demand that an american be able to survive as the lowest common denominator by demanding that everyone else subsidize him. He doesn't have to compete with third world labor. he chooses to. Mostly because people like you incentivize it.

"And tariffs aren't there to protect YOU and your wallet. They exist to protect your entire society from downsliding into a third world status."

Because without tarriffs, I am going to be poor? Your average doctor is going to be poor? Your average engineer is going to be poor?

Wages increased by an avager of about 3.5% last year for college graduates, so if you want a good income, you know the way ahead. Claiming anything to the contrary is just more BS intended to convince people that, without someone like you, they will inevitably suck at life.

"If you want honesty, you should admit that you care more about your own wallet today than the economy of your country tomorrow."

I don't just care about my wallet. I care about yours too. And my neighbors. And my childrens. And they shouldn't suffer so that you can purchase political power at their expense.

At the end of the day, your progressive BS does nothing for me or my family. Or anyone else who is willing to cowboy up and do something of value. Your position appeals to those who would prefer to get paid for doing nothing. Or not really nothing. they have to vote for the correct shepherd.

#26 | Posted by madbomber at 2013-03-15 09:14 PM | Reply | Flag:

At the end of the day, your progressive BS does nothing for me or my family. Or anyone else who is willing to cowboy up and do something of value.

#26 | Posted by madbomber

That's because your conservative fallacy is that you are separate from the society you live in, and you think that a policy that hurts the working class won't affect the entire society including you. No working class = no tax base, no customers in restaurants, car dealerships etc. We can't all be wall street vampire barons at the same time. We'll have no one to suck the blood from.

This is very revealing though:
"Wages increased by an avager of about 3.5% last year for college graduates, so if you want a good income, you know the way ahead. "

You seem to suggest that everyone has access to college, that manual labor has no value, and that we can abandon manual labor and survive. You're wrong on all counts. Labor actually creates value. You can't fuel a nation on business majors doing loan modifications.

"Your position appeals to those who would prefer to get paid for doing nothing. "
Stop watching conservative cartoons. This boogeyman is used to get you to support the plutocratic policies that hurt the poor.

Free trade homogenizes the world. The poor countries get richer and the rich countries get poorer. We are rich, but sliding down as we force our workers to compete at lower wages. If you think you won't be affected by the diss appearance of jobs in this country, i have news for you, you already are, and it's going to get a lot worse as long as the plutocrats are in charge.

#27 | Posted by SpeakSoftly at 2013-03-15 09:37 PM | Reply | Flag:

Free trade has lifted low wage country wages a little, lowered high wage country wages a lot and made the 1% filthy rich. A small fraction of their fortunes now go to buying our Government in order to rig the economic system in their favor and overlook their crimes.

#28 | Posted by nutcase at 2013-03-15 10:58 PM | Reply | Flag:

You'll need to refresh my memory as to the last time a flock of sheep voted for their shepherd. But you've never concealed you're fascist tendencies. The obligation to act as shepherd is the noblesse oblige of the modern progressive.

Are you at work? Look around you. Everyone who joined the military opted to come under the stewardship of a shepherd.

Get it?

It's as though you don't acknowledge the existence of society with your "noblesse oblige" comment. Not sure what you're aiming for there... if indeed there was beyond simply informing us that you're an insulting pedant.

#29 | Posted by snoofy at 2013-03-15 11:26 PM | Reply | Flag:

Because without tarriffs, I am going to be poor? Your average doctor is going to be poor? Your average engineer is going to be poor?

What kind of bait-and-switch are you trying to pull by mentioning doctors?
That's a profession whose supply is deliberately kept low, which stimulates demand, which in turn garners higher wages for doctors.
Wages which come directly from all those wallets you're oh so concerned about.
So really, that's just about the worst example you could have picked to make the case for free trade.

The book is called "Wealth of Nations." You seem to be reading from "Wealth of Wealthy People."

#30 | Posted by snoofy at 2013-03-15 11:37 PM | Reply | Flag:

Tariffs wouldve prevented a lot of it.

#24 | Posted by SpeakSoftly at 2013-03-15 08:19 PM | Reply

That's questionable. If more manufacturing hadn't gone over seas and we constructed artificial barriers to other countries, who would buy our exports. As was present in the 20s/30s and the great depression "beggar they neighbor" did no-one a favor. All you get is retaliation and it worsens everyone's economy. In fact we're getting the same problem today with the currency devaluations taking place around the globe. It's becoming a round robin or musical chairs which the US is all too glad to play. It will not end well for anyone.

#31 | Posted by matsop at 2013-03-15 11:48 PM | Reply | Flag:

A lot of the problems we have today has nothing to do with "free trade" (which is only free depending on each country's definition) and the loss of manufacturing jobs overseas directly. It's really has to do with monetary policy and the misallocation of capital. The loss of jobs overseas was just an outgrowth of the poor monetary/fiscal policy over the years and the construction of a consumer driven society used to having "things". The natural evolution was then to have jobs move overseas for the creation of products at prices that would maintain that consumerism. It all was the result of poor monetary/fiscal policy over the years that created an ongoing credit binge that eventually fueled a huge debt load. Free trade was not the primary driver but was secondary to the unending creation of currency without backing. "Free trade" was a natural outgrowth of reverberating capital misallocation.

#32 | Posted by matsop at 2013-03-16 12:10 AM | Reply | Flag:

It's only poor monetary policy for those in the bottom 80% of the economy.
The rewards going to the top 20% justify it, from the perspective of many of those in the top 20% (and many outside it).

#33 | Posted by snoofy at 2013-03-16 03:16 AM | Reply | Flag:

It's only poor monetary policy for those in the bottom 80% of the economy.
The rewards going to the top 20% justify it, from the perspective of many of those in the top 20% (and many outside it).

#33 | Posted by snoofy at 2013-03-16 03:16 AM | Reply

Correct. The wages of the 80% did not keep up with the expansion of the monetary base---the start of the lagging wages for workers began when the misguided Nixon took us off the international gold standard in 1971.

#34 | Posted by matsop at 2013-03-16 10:34 AM | Reply | Flag:

my toyotas are made by americans in south carolina. my fathers ford is loaded with chinese parts and made by union workers who are the reason why i'd never by american. my toyotas cost less to buy, own and operate plus they have a better resell value than domestics. not to mention that toyotas are built better than any american equivalent.

#35 | Posted by yougothurt at 2013-03-16 11:19 AM | Reply | Flag:

"That's because your conservative fallacy is that you are separate from the society you live in, and you think that a policy that hurts the working class won't affect the entire society including you. No working class = no tax base, no customers in restaurants, car dealerships etc. We can't all be wall street vampire barons at the same time. We'll have no one to suck the blood from."

Utter steaming dog poor. If there were any truth to your statement, it would hold as true with the global community as it would with a local community. Your position is one that intentionally degrades both my standard of living, and that of workers in the developing world. And I would much rather preserve my standard of living, while at the same time providing a means of survival for someone in the developing world, vice ensuring that an american high school dropout can afford the latest iteration of the iphone and drive an SUV.

"You seem to suggest that everyone has access to college...

Everyone does. you must be new.

that manual labor has no value...

It does have value. But since the vast majority of humans are fully qualified unskilled laborers, it's a highly competitive market.

"and that we can abandon manual labor and survive."

Someone has to shovel the snow out of my driveway. For a dollar an hour I'll pay someone to do it. At two dollars an hour, I'll do it myself.

"Labor actually creates value. You can't fuel a nation on business majors doing loan modifications."

Labor does create value. Progressives tend to suppport a position where workers are paid more than the value of the labor they contributed. If I can pay someone in Indonesia $5 an hour, but am forced to pay an american $25 an hour, I've paid too much.

"Stop watching conservative cartoons. This boogeyman is used to get you to support the plutocratic policies that hurt the poor."

Poverty is self chosen for the majority of people. And that's fine. Let them be poor. For the ones that don't want to be poor, the way ahead is not particulalry difficult.

"If you think you won't be affected by the diss appearance of jobs in this country, i have news for you, you already are, and it's going to get a lot worse as long as the plutocrats are in charge."

Statistics suggest otherwise. Right now, a college graduate makes roughly double what a high school graduate earns. In the mid 1970s, a degree might get you a 5%-10% premium on wages. We are a better country by not catering to the lowset common denominator.

#36 | Posted by madbomber at 2013-03-16 01:07 PM | Reply | Flag:

"What kind of bait-and-switch are you trying to pull by mentioning doctors?
That's a profession whose supply is deliberately kept low, which stimulates demand, which in turn garners higher wages for doctors."

Than pick a profession. Accountant. Engineer. NBA Player. Actor. Musician. Airline Pilot. Auto mechanic.

Are these people going to be better or worse off with tariffs?

"It's only poor monetary policy for those in the bottom 80% of the economy.
The rewards going to the top 20% justify it, from the perspective of many of those in the top 20% (and many outside it)."

Rewards? Oh, you mean earned income.

Is there some reason to suggest that money would go to those that didn't play any part in earning it? Or that the rate at which wealth created is distributed should be anything other than proportional?

#37 | Posted by madbomber at 2013-03-16 01:13 PM | Reply | Flag:

"my toyotas are made by americans in south carolina. my fathers ford is loaded with chinese parts and made by union workers who are the reason why i'd never by american. my toyotas cost less to buy, own and operate plus they have a better resell value than domestics. not to mention that toyotas are built better than any american equivalent."

The day that Japanese (or any other) auto makers break into the large SUV/truck market, I think the big three are doomed. Unless they could dump the unions and get their costs/quality under control. A 6.7L Diesel Tundra would probably trounce the competition.

#38 | Posted by madbomber at 2013-03-16 01:15 PM | Reply | Flag:

"It's only poor monetary policy for those in the bottom 80% of the economy.
The rewards going to the top 20% justify it, from the perspective of many of those in the top 20% (and many outside it)."

Rewards? Oh, you mean earned income.

Is there some reason to suggest that money would go to those that didn't play any part in earning it? Or that the rate at which wealth created is distributed should be anything other than proportional?


I don't understand your question. And it's more than just earned income, a better terms would be net wealth. And it's not a question of accounting in the first place. It's about the strength of the economy and how well the economy serves the nation.

And, like I said, 80% of the income earners are stagnating. I don't see how any amount of success for 20% could ever "make up" for that. Net 60% of the earners are going nowhere, meanwhile aggregate earnings are through the roof.

Societies with rigid class barriers tend to treat those at the bottom very poorly. We should be better than those butt-stain kinds of countries.

#39 | Posted by snoofy at 2013-03-16 06:29 PM | Reply | Flag:

Before the Federal Reserve and 16th Amendment (Income Tax) was forced upon Americans by the European bankers, the USA was funded mostly by tariffs on imports that encouraged manufacturers to produce in the USA.. These so-called banksters have been shafting America for 100 years while only their little club of riches benefited.

Google. Federal Reserve and 16th Amendment coincidence

#40 | Posted by robson at 2013-03-17 06:47 AM | Reply | Flag:

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