Simple Economics

I can't remember a time when the people trying to run the Government were as disorganized and seemingly clueless as now.

Of course the dotard is the worst of the lot.

He seems to have an image of an America where what's good for US Steel is good for the country and Coal is King.

His simplistic views of how things work are so inept that we seem likely doomed to a real crisis, either a war or a recession or possibly both.

Let's hope that we somehow can avoid those things, but it seems likely that we are doing damage now that isn't going to be easily corrected.

Take his view on trade.

Government don't trade with each other, companies do.  Now Governments, via things like trade deals and tariffs set the playing field but once its set the companies need to adjust.

Goods are sold where there are consumers, and they need to be as competitive as they can be for what they offer.  Now, if for example Steel can be produced cheaper elsewhere and used here to produce consumer goods, everyone pays less.

If you increase the cost of steel everyone pays more.

Simple math.

Now possibly making more steel here might create some jobs.

Selling less items because prices reduce demand will eliminate more jobs.

Imported steel is about 30% of the steel used in this country and possibly increasing the cost of imports will shift some of that to domestic production.

Consumers will get to pay for that.

This might be minor but if the issue escalates to other goods we export it might become major.

One might wonder why the steel manufacturers couldn't figure out how to be more competitive without Government protection?

Hmmm?