Brad Sherman Wants Tariffs On China

 

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Democratic U.S. House member Brad Sherman represents the 32nd district in California, an area that includes much of western Los Angeles County. Unsurprisingly, he's a graduate of Harvard Law School.

His latest pet political project is to throttle trade with "China", meaning imposing tariffs on imports from companies located in that country. This is supposed to be an effort to balance trade between the two countries.

Is the trade imbalance actually a detriment to the U.S? As others have mentioned, I personally have a trade imbalance with the local supermarket. I purchase all my foods from them but they purchase nothing from me. Sure, I could go to other vendors, there is, after all a smidgen of competition in the grocery business, but there are other examples where no such competition exists. For instance, the US Postal Service, which has been under fire almost from its inception with being a government monopoly. The USPS first class mail isn't what it once was with the new technology of telephones and email but remains in force just the same.

It might be argued that that groceries and love letters are domestic affairs that are unaffected by international trade. Maybe, maybe not.

One thing to keep in mind, however, is that in order to purchase wares produced in China, American importers exchange enpixelated US currency for those products and the Chinese sellers accept them. Since they, at least currently, can't pay their taxes or buy cocktails with Yankee money, much of their trade advantage goes to the purchase of US treasury bills, which is a major part of the US budget. Businesses in countries that don't have an economic relationship with the US won't or can't purchase Treasury securities. Companies in Paraguay and Estonia have a minimal trade relationship with the US.

Ultimately, international trade is a matter of freedom. A free person should be able to make legal voluntary transactions with anyone he wishes without penalties. In fact, the absence of that freedom was a main cause of the American Revolution and later the War Between the States. International trade requires companies located in importing countries to operate at maximum efficiency in order to survive. This is to the benefit of all consumers, not just domestic manufacturers and their empolyees.

The fact that Harvard grad Brad Sherman seems to be unaware of the positives of trade with Chinese companies makes one wonder if he spent his time in class there gazing out at the Charles River or simply sleeping.