Libertarians United: Individual Rights

Everyone makes a joke now and again. In fact, I probably make way too many. Many of them cross them line of commonly socially acceptable topics. Joking is fine but I think there is something to be said for serious discussion. Often lost in the laughter is the actual points of my joke. I only use parody or satire because it gets the point across much quicker than frank discussion. You probably read title and thought you got rick-rolled? Don’t worry. I’m getting there. My last blog post was about the names that libertarians call themselves. Click here. I want libertarians, anarchists, ancaps to all unite. I believe that we can. I don’t mean in a collectivist way but in a united front. We are ALL natural allies. I think there is many things that we all agree on to some degree. But one of the things that we all agree on without much debate is individual rights.

Why Individual Rights?

If there is one thing the founders got right, it was individual rights. Thomas Jefferson wrote it in the declaration of independence, however, he meant white land owning men.  The constitution had it amended in the Bill of Rights which outline 10 specific individual rights. We all know that individual rights go much further than just the 10 in our constitution. Individuals are the smallest minority. Individuals make up groups. Individuals determine their own path in life. Of course, you have influences and different societal restrictions. But in the end, its the individual that decides who they want to be associated with and what they want to do. Individual rights isn’t divine. It stems from property.

Property Rights are the basis of individual freedom

The right to own property is the basis of individual rights. Why? The answer is simple its because when you own property it allows you to do whatever you want on that property. Its your own private island. Let’s face reality though, government today controls much of what we do on our private property. Its wrong. This is why when Anarcho-Communists argue for public property what they actually mean is, I want the government to own everything. If everything is owned by everybody, then taking whatever you please is not considered theft. But the reality is if you take somebody else’s things then its theft whether or not they actually own it or not. You didn’t ask permission. An-coms brings to another important point, the NAP.

Non-Aggression Principle

Whenever you try to argue with someone about a society with no government they always try to bring up some magical power void. My response is, well I see a giant power void in your brain. In a voluntary society, there won’t be government however, there will be one rule. NAP. The non-aggression principle basically means do whatever you want without violating the individual rights or freedoms of others. It means that you won’t do anything that could be a crime today. Many crimes like murder, burglary, extortion are crimes against others. Other victim-less crimes like selling drugs wouldn’t be a violation. The reason there won’t be a power void is because NAP doesn’t just say you have rights. You also have the right to enforce those rights with guns. This is why there is no power void because each individual is empowered.

OK Genius but I disagree.

Hold on, I got one point to make! Minarchists seem like a friendly ally but beware. I’ve recently learned that they actually tend to lean into statism more than I like. I can’t blame them it took me awhile to go full no government. But the more I look at the government in the US and UK fuck up everything, the more I think to myself imagine what life could be without it.  Minarchists believe in a limited government. Just the basic level services. But the problem with it is that government can’t help but grow itself. The problem is that human beings are self interested and greedy. Government is the avenue of power on the road to corruption. It masks itself in goodwill, but the road to hell is paved with good intentions. We can’t possibly trust government, it’s like trusting your spend-happy spouse with an American Express Black Card. You know your wife can’t help herself in a Louis Vutton store. Government is worse, 21 trillion dollars in national debt.

My Point: Lets rally around Individual rights

If there is one thing that we (Libertarians, Anarchists, Ancaps) can argue for as united front, it is individual rights. We don’t always have to agree on everything. In fact, I’m a big proponent of debate. I thrive on argument. Granted, changing my mind is hard but if you present a persuasive fact-based argument, then I’ll agree. Anyway, if libertarians want to be taken seriously unlike the LP then we have to present some form of consistency. Our ideologies are very similar. We have to give up our stubbornness and actually try work toward a common end. The means of getting there is up for debate. But the common goal is to achieve a voluntary society.  If you don’t believe in the ends then you might not belong, which is OK. We’re supposed to tolerate everyone except Communists. Be focused on principles of libertarianism and there is no disagreement that can separate us.

Taxation is Theft. Thanks for reading.

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A Name to Unite “Libertarians”?

As usual twitter hijinks has lead to an debate about confusion in libertarian circles. Nothing new to see here. The confusion comes in part from the fact that many “libertarians” have different names they like to go by. For example, I prefer to be known as a Libertarian. But I know others who like: Anarcho-Capitalist, Voluntaryist, Anarchist,..etc. The whole concept of naming your political affiliation is nothing new because everyone does it. The central question of this post is to figure if finding a common name for “Libertarians” would actually unite us or do we need to look deeper at our principles to unite us rather just a name.

Different Names for the Same thing

So I don’t  know the saying exactly, sue me. My example on twitter was this: If you call a flower, a “shit plant” it doesn’t change the fact that its a flower. On the other hand, if you call a piece of shit, a “flower” it doesn’t change the fact that its a piece of shit. With that being said, Do I think a common name could help unite us?  Maybe. Here is why I think it could: One of my twitter friends, suggested the name #Anarchasm. Which I thought was a pretty good one. I think a common name would better in terms of marketing. It would help cohesiveness among all libertarians. I think the arguments against are much stronger. Re-branding is something that collectivists do. Just because you rename your movement doesn’t necessarily translate into success. Also if you look at libertarian party which I do support in elections, they are a mess. The party markets itself wrong because it tries to equate itself as the middle of Democrats and Republicans. The reality is that libertarians are outsiders. We don’t believe in any government or any political parties. I would argue that each individual is a political party of one because individual rights are the only ones that matter.

Principles are too Important to be ignored

The most important aspect of this debate is whether the name we choose to go by, actually represents our common beliefs. If libertarians are to be successful in changing society to be more like our voluntary system then we need present the same goals and arguments. On twitter, its likely you will see debates about politics. Typically when multiple Libertarians get into a debate with a statist, they will disagree with the statist. However, some of them will disagree with each other, which doesn’t help the argument they are making. We have to follow our principles of voluntary exchange and voluntary action in marketing our beliefs. If we don’t follow our principles then we are no different than the statists. Don’t get me wrong: open debate about ideas is a good thing. However, debate in private, don’t present debate to the people whom you are trying to convert voluntarily. They will be LESS likely to join if they see we can’t even agree with each other.

What principles should we all have? 

I think its obvious that all we believe in capitalism as main economic engine. I think we all believe that the government is always evil. We all known that taxation is theft. We all believe that communism and socialism don’t work. Its important to note also, that principles are not just right and wrong. Principles of libertarians are merely guidelines for living your life. Your own morality is responsible for actual judgement what is right and wrong. If we all follow the same guidelines, then individual rights will flourish, and nobody will do wrong because as the Non-Aggression Principle states that you can’t deny or break anyone else’s rights. The individual rights are clearly defined by the Bill of Rights. However, its not a comprehensive list. Individuals have unlimited rights there is nothing that government or other individuals can take away legally.

The Debate will Continue: 

This blog post serves as an opinion of a debate that needs to take place within the libertarian circle. It is my firm belief that as libertarians we need to unite based on principles in order to successful launch our society of individualism. If we don’t, and if we try to re-brand under name with still fractured goals and arguments, we will fall into the collectivist mindset.

Keep pushing for liberty, keep debating, keep your mind focused on the goal of libertarianism which is total freedom. Drive the narrative, don’t let it drive you.

#Speakout

Thanks for reading. Comments and Criticism is appreciated and welcomed.

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Colton Everett: Endeavor for Enlightenment.

*Loud Music Blares*

A typical college party raves on through the night on the campus of a prestigious university. The house party is a common symbol of college life, with red solo cups, ping-pong balls, and beer cans strewn about. It is 2:34 am on a Saturday night, Colton Everett is a senior. He is about to graduate with a degree in History. Colton and his friends are celebrating their last days in college. Many of his friends have jobs lined up, but some do not. As for Colton, he has applied to a Master’s and Doctoral Program. Fortunately for him, he was accepted.

Colton Everett was born to an upper middle class family. His father Harrison Everett and his mother Emily Quinn, the father is a political lobbyist, the mother is a college professor. Colton is an only child, this meant his parents were able to lavish on him the best tutors, schooling and opportunities. Colton upbringing really propelled him through school into college. Moving forward through his Masters and Doctorate, Colton studied political science. He had aspirations to be a politician. This aspiration was not helped by his father or his mother. His father, Harrison Everett a political lobbyist found politicians to be disgustingly greedy after 20 years of dealing with them. His mother Emily Quinn, taught English, but her view of politicians was just as negative. Emily Quinn was born to  a poor family. She lived in a run-down apartment, overcrowded. Emily saw her parents struggle despite the efforts of the government to help. Colton wasn’t raised to smart, he actually possessed real intelligence. He rarely studied and was mostly a straight A student.

Colton knew that after he finished his doctorate, he wasn’t going to be ready for public office quite yet. He was still young at 29 years old. He had lined up and applied for just three jobs. Colton had his father reluctantly use his contacts to get interviews with three well-known think-tanks. Colton excitedly prepared for his interviews. Colton knew he would be starting off at the lowest level but surely work his way up the ladder.

Day of Interview 1

Colton takes the morning train to near the interview location. He stops by a nearby coffee shop. It’s a typical busy Monday morning. Hordes of people walk by, cars honk, and planes drone overhead. Colton drinks his morning coffee whilst reading the morning newspaper. He looks down at his watch; 7:49 am. It was time to go. Colton folds his newspaper, throws away his empty coffee cup. It was a short walk to the interview which was to be held on the 48th floor of a skyscraper. After pushing the up button, the elevator dings, and Colton enter. The 48th floor button is already pressed. Colton is wearing a black suit, white cotton dress shirt, and a silk red tie. The elevator lights are reflecting off his shiny black shoes. The elevator opens.

Colton walks out meanwhile looking at his watch, 8:05 am, and decides to ask the secretary where the bathroom is. “Its down the hall to the left” says the secretary. “Thank you, I’m here for an interview at 8:30am with Mr. Alexander.” Colton responds with a slight smile. “Hi, Mr. Everett, when you come back just wait here and Mr. Alexander will be with you shortly!” the secretary says with a smile. Colton smiles back and walks toward the bathroom. He enters the bathroom and looks in the mirror. Colton has strong jawline, evenly spaced eyes, a wide smile. He fixes his jet black hair which was rustled from the wind. He fixes his tie by wiggling it back and forth.

Back in the waiting area, he gazed out on the other skyscrapers. The cloudless sky and bright sun shining in the big window. After what seemed like an hour, Colton looked down at his watch, simultaneously reading the time: 8:29 am, and heard Mr. Alexander say “Send in Mr. Everett.”  “Will do sir, Mr. Everett, go ahead in.” replied the secretary looking up from her computer. Colton nodded and got up to walk into the office.

Mr. Alexander was tall man, he was bald with a full beard. Colton shook hands with Mr. Alexander. “Nice to meet you Mr. Alexander, I’m Colton Everett.” said Colton as he smiled genuinely. “Good to meet you, Mr. Everett, I’ve heard good things!” replied Mr. Alexander. “Be seated, please.” say Mr. Alexander as he took his own seat. Mr. Alexander lifted up a folder and shuffled some papers among them was Colton’s resume. Then Mr. Alexander began the interview:

“Mr. Everett, Why do you think your good fit to work at Solve-America Think-tank?” he said in a serious tone. Colton took a deep breath and replied: “I believe that I am a good fit for Solve-America Think-tank because I have a lot great ideas. My problem solving skills are only matched by my critical thinking skills. If I’m hired, I promise I won’t disappoint.”

“Sounds good but what if you make a mistake?” replied Mr. Alexander.

Colton smiled and said “If I make a mistake, it will be fixed before anyone can point it out.”

Mr. Alexander laughed and quipped back “Alright, I’m holding you to that.” He paused and continued a few seconds later, “An important aspect of this job will be to analyze problems and find real life, workable solutions. I’m going to present you with a simple one.” He paused slightly, “Then I’ll repeat the problem and you will have give me an solution as your answer. Sound good?” He asked.

Colton replied,”Bring it on, I’m ready to roll.”

Mr. Alexander took out another piece of paper and held it up covering half of his face. Then he cleared his throat and read the problem: “Imagine your given a budget of a city. They ask you to find a way to cut costs without raising taxes. It’s a city of 100,000 people, it has a city council, a mayor. If you need more information, ask me.”

Colton nodded his head and started to think quickly. This was a classic predicament of cost vs. spending. He knew exactly how to answer and took a breath then said it confidently: “I would suggest that cut non-essential city workers,  eliminate non-essential city programs that aren’t necessary to the operation of the city. I would suggest a slight salary decrease for city workers until the city budget balances. I might also suggest investing in infrastructure and other projects that could attract more businesses to raise money. Cutting spending is better than raising taxes anyway.”

Mr. Alexander cracks a smile. “Good answer, now suppose they refuse your plan on the basis of the government salaries getting slashed.”

Colton was expecting a few curveballs, so he took a second to collect his thoughts. “What else are they willing to cut?” he questioned. Mr. Alexander replied: “Nothing, they don’t want to give up anything. Convince them.” Colton shook his head in dismay. He then give his answer: “Your city will go bankrupt, you will all be force to take paycuts or lose your jobs. The people of the city will suffer under tremendous debt. There is no other options, take it or leave it.” he said as he maintain a serious look.

Mr. Alexander sat back in his chair for a good minute. His facial expression was blank. He then replied to Colton’s  bold answer: “Son, congratulations! We would like to formally offer you a job.” was followed with a big smile. Mr. Alexander stood up to put his hand out to shake. Colton instantly lit up and met Mr. Alexander’s hand over the desk with his own hand. Colton repeated “thank you Mr. Alexander” about 10 times. He wasn’t expecting to be immediately hired.

“Excuse me, I need to make a few calls, if you don’t mind.” Colton said to Mr. Alexander, he needed to call off the other interviews and tell his parents that he got the job. Mr. Alexander obliged and congratulated him again.

To Be Continued….

Thanks for reading!

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PS: This is a new thing I’m trying, Its a fictional story that will be written in a series of blog posts. The themes will be history, politics with a focus on libertarian ideals, and of course human experience. Hopefully it will be a new and different way to deliver the libertarian message to everyone. 

Photo by The Roaming Platypus on Unsplash

Alfie Evans: Socialized Healthcare is a complete FAILURE. Alfie is DEAD.

*UPDATE* Alfie Evans has died at 2:30am British time on April 28th. The Government has officially murdered a baby. It is a sad and disgusting day for humanity. Rest In Peace, Alfie.

I don’t believe this is a hot take. If you are even remotely in support of ANY of the actions that the British government/NHS has done towards Alfie Evans, then get the FUCK off my blog. You human scum. 

Sorry. I typically avoid using emotionally charged arguments or completely dismiss the opposition. But in this special case I will forever condemn you to bloody hell if you support this TRAGEDY perpetrated by the British. I have three basic objections to what is happening in Britain with Alfie Evans. Now if you haven’t heard about this then HERE is a run-down.

Hospitals must save lives!

One of the most immoral and disgusting things about this case, is that Alfie Evans is LITERALLY being held hostage by the hospital. They have police guards, and the doctors REFUSE to treat the baby. This is an absolutely disgrace to humanity. What the fucking hell did this poor baby DO to them? The Doctors should be jailed. They had absolutely no right to take Alfie off of life support. Treat his disease. The baby is only 23 months old. Not even two years. Even worse, there are doctors in Italy who are willing to treat the kid. Brings me to my next point:

Government IS NOT allowed to kill with “Dignity”!

The British government decided to somehow to block Alfie from being able to go to Italy for treatment. Apparently, because the British government would have to pay for it. ARE YOU FUCKING KIDDING ME! Listen, if your going to have SOCIALIZED medicine, the point is that GOVERNMENT PAYS FOR YOUR SHIT. This has to be legit the worse court decision in human history. Even worse than this, British health officials said that ” Alfie will die with dignity.” or some gross line. So let me get this straight: If someone wants to commit suicide with the help of doctor, its illegal. If someone wants to do closet abortion, its illegal and wrong. If your friend helps kill you for suicide, its murder. Yet, if the government benevolently decides to kill you with dignity then ITS TOTALLY FINE!!!!!

This is insanity! I don’t just feel bad for the baby but the parents. I would literally lose my mind. I would keep trying to sue them until they kill me. This is a GROSS overstep of government intervention.

Socialized Medicine DOES NOT WORK. Stop advocating for it.

Let’s face it, with this Alfie Evans situation, regardless of outcome, mind you right now Alfie is still breathing nearly 72 hours after being taken off life support. If Alfie Evans dies, it is on the British Government. The blood is on their hands. If Alfie Evans lives, the parents should move somewhere far away from Britain and BURN their fucking passports. If we set aside the emotional side of this story and just look at the bigger picture of government run healthcare, we can see that its a failure.

The utter failure of socialized medicine is disgusting. This case proves that we can never let government run our healthcare. Murder is immoral. It doesn’t matter how you justify it. I personally don’t want the government to make MY healthcare decisions for me. My doctor and I are responsible for that, alone. The government has no business in healthcare. The free market can provide cheap and fair healthcare with minimally invasive regulations and rules. Alfie Evans NEVER deserved this. The baby did nothing wrong. How can you let the government KILL A FUCKING BABY!

If you support free universal healthcare or socialized healthcare or single payer, you are a murderer. You are literally supporting the government’s right to KILL you with dignity whenever they want. Even the POPE, who is a known socialist, said that Britain should let Alfie go to Italy for care.

We have to wake up because we will become like Britain, killing toddlers with dignity for no reason. I believe that cheap healthcare is NOT more important than healthcare that doesn’t allow for killing with dignity. The cost of a human life is priceless.

Socialized ANYTHING is cancer. Please stop supporting.

I stand with Alfie Evans. I stand with is right and moral.

Stand up with me.

Thank you for reading!

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#AlfieArmy

Memes: The Idiot savant’s guide to Memes.

I don’t know if you can guess what this post is going to be about? Who puts a word twice in one title? A total Idiot? Its possible. Before I start with the real post, I want to put a disclaimer: THIS IS SATIRE. Its a JOKE. If you get offended please smash your phone or computer immediately. 

There is a joke going around the internet, you may have heard of it. The left can’t meme. This joke is often shared by conservatives, independents, and libertarians alike. They say stereotypes aren’t nice but almost always TRUE! Say what will about which political view memes the best, this is basically a guide on how to meme GREAT! To quote Donald Trump: I’m gonna make MEMES great again or MMGA. Stick that on your hat. Side Note: Isn’t Donald Trump the greatest meme treasure trove ever gifted to humanity. SO MANY GREAT MEMES! Thanks Donald, you might be a horrible president, worse businessman but at least your memes are straight FIRE. HA! Wow I just went in on Trump. Anyway, I guess a good starting point is with Trump memes. They are relevant. They are hilarious. Let’s make MEMES great again! MMGA!

Although memes can be on any subject material, I find that the funnier ones are involved with politics. Trump is known for his out of this world self confidence which leads to some great memes:

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I use this meme constantly especially if I’m proud of words that I wrote or if somebody shows any signs of being of human by using words. Memes are often sarcastic in nature. They naturally represent a picture with words but the meaning can have TRUTH to it. For example:

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Evidence 101: Trump just bombed Syria. If you missed that post then here it is.

There are also others which are pretty sarcastic, usually like this one below, indicating you should get involved kinda of ironically.

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Ok enough Trump for today. He is funny but there are greener pastures with FUNNIER MEMES. I know I can’t contain my own excitement. In general, if I was rate the funniest memes in a supply and demand curve, I would say that Memes are more funny when they are more offensive. Therefore, the less offensive, the less funny. I don’t think there is an explanation needed for what is coming next:

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Again, if you are offended, its a joke.

If you laughed as you should, then here are some more hilarious memes:

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Its historical and funny. Memes can take many different forms and topics.

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Trump’s alleged best friend Putin is a great meme. I encourage a google search of these. I’m going to finish up this meme lesson with a gallery of sorts, of memes. Have a good laugh, get offended, and remember its ok to steal memes, Thomas Jefferson says so.

Enjoy!

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I hope you had a good laugh. The last one absolutely kills me if you imagine reading in a British accent. I hope you have a better understand of Memes and the purpose is obviously to make people laugh and sometimes to prove a point about something in a funny way.  Just remember the LEFT can’t meme. Also while your still here check out my social media written below. ALSO CHECK OUT THE MEME FOR IT, you will love it. I promise.

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DbhO2suVMAACmUi

Lmao, just admit you laugh your fucking ass off!

Thanks for reading, Taxation is theft.

Benefits of Intervention: Syria?

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Trump has recently organized an response to an alleged chemical attack in Syria. The United States along with England and France have come together to missile some targets of known chemical weapon storage and research. This post will be about this newest Syrian Intervention but it will also generally cover the track record of failure with interventions. I have actually written about this in December 2016, when under President Obama decided not to get involved in Syria despite the humanitarian crisis. (Post is linked here)

Allies: Syria and Russia

The bombing of targets in Syria in response to a alleged chemical attack comes with more controversy than usual.  The Russia President, Vladimir Putin warned against the US trying to take action against Syrian President Assad. The reason is that Syria and Russia are allies. Russia has been helping the embattled Syrian President fight against the rebels in their seven year civil war. This means that Russia is very territorial about who intervenes with the civil war. I think Russian goals in Syria are pretty clear, they want to expand their hegemony in the middle east. Putin probably has no real humanitarian interest in the Syrian people. Similar to Russia invasion and annexation of the Crimea, the nature of their allied relationship with Syria is to project power on the world stage.

False Flag Attack: Did it actually happen? 

Another interesting aspect of this particular situation is that reports came out that the chemical attack was a false flag. This means that no chemicals or possibly no attack ever occurred. Interestingly enough there is still a question about the legitimacy of the attack. Of course, Syrian President Assad has a history using chemical weapons against his own people. This alone is a serious offense especially if you consider the Geneva Convention protocol. Geneva Convention refers to the rules of engagement and genocide. The murky nature of the civil war with many different factions makes it a complex situation. Its not clear to me or to experts that there is a genocide occurring in Syria.

Another point about false flags is that many wars have started because of false pretenses. I think that this is a theme which can found throughout history especially in United States since 1917.

Precedent False Flags in US History

I believe that the intervention in the Syrian conflict is not unprecedented. The US has a history of going in on wars with the basis of a lie. For the sake of length, I want to start with the Vietnam war. The Tonkin Gulf incident occurred in 1964, it was a false attack on US ships. It led to the escalation of the Vietnam war. Moving on to the Gulf War, which had rumors about Saddam Hussein invading Kuwait. More recently, we invade Afghanistan under the pretense of fighting terror. Ironically, the terrorists main goal was have to us overreact and spend trillions upon trillions of dollars and nearly 3000 lives to kill an enemy so small.  Then we got the Iraq war, which was started over the rumor that Saddam Hussein had weapons of mass destruction. We still never found any weapons. Then you have Libya, where an NATO coalition decided the Muammar Gaddafi had to go, not for any particular reason but oil. Obviously, there are numerous examples, but the point is that lies are a great pretense for war.

Benefits of Intervention

I believe that history would tell us that intervention doesn’t work out as intended. Just look at Vietnam for example. The US mission in Vietnam was to keep the communist North Vietnam from invading the south and turning it communist. The US lost the war by a lot. The US had superior military power, bombs, 500,000 troops and state of the ark equipment. The US lost to a bunch of farmers in the jungle. Sad life. (Note that Gun Control advocates ignore this fact, farmers with guns can defeat the US military)  I think that Vietnam and others beg the question: Is there any benefit to intervention?

The answer is both yes and no. Let’s start with no. There is no benefit to the American public. War is very costly, if you add up the cost of the wars since the Korean War, the total cost is nearly equal to our national debt of 21 trillion dollars! The other costs include military causalities, lots of injured veterans, and instability in the region of conflict. There is no benefit to the American People. So you may ask who DOES benefit? I am glad you didn’t forget because ironically, the government and military contractors benefit the most. The government benefits because its a justification to raise taxes and spend more of your money! Military contractors are corporations who are given (usually awarded them) contracts to produce military equipment and research. The Department of Defense is responsible for this process of handing military contracts. Unfortunately, the DoD does a horrible job of holding these companies accountable. Many times the military contracts are exploited, because companies spend more money and take longer than they are supposed to. This lack of accountability wastes TRILLIONS of dollars. Its a big problem and a big topic for another post!

Conclusion: Intervention Sucks

Ultimately this intervention into the Syrian conflict will come back to haunt us. President Trump has shown himself to be no different than his peers (past presidents). Its a shame that the America people don’t hold the government accountable. One of the reasons for the sudden explosion of intervention is the President’s ability to declare war without Congressional approval. This needs to change. The founding fathers gave Congress the power to declare war for a reason. A President with the power to declare will eventually become a tyrant. Its a dangerous precedent. The benefits of giving congress war powers back is that Congress can’t agree on anything and therefore it will prevent 99 percent of new interventions. A great victory for the American people!

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Have an awesome day!

Part 2: Monetary policy and Trump’s Tariff debacle

Before you start reading this post you should go to part 1 if you aren’t familiar with supply/demand curve and “dead weight loss”. 

In the first part of this post, I will be discussing Trump’s tariff debacle. It is a little misleading but enacting tariffs can only end in a debacle. In today’s world, we have globalization and free trade around the world. The world is much too interconnected to put protectionists policies in place is like moving backwards. I want to re-highlight these points even though I mentioned them in my other tariffs post here.  In the second part of this post, I will go over one or maybe two common monetary policies utilized by the Federal Reserve (Central Bank). The policies will be in relation to tariffs because they have to do with the actual money supply. I won’t go too far into detail, lets get right to Trump.

Globalization and Free Trade are the New Norm:

If you haven’t read the tariff post linked above then here is a brief recap about globalization and free trade. Globalization is spread of goods, people and cultures all over the world. In today’s world, if you look at how the internet let’s people access information instantly, and how you can literally go anywhere by plane, boat or car. This is globalization. The exchanging of information with people from all over world, it has us more interconnected than anytime in human history!

This connection has lead multiple free trade agreements. There are many more pending. My point is that Trump cannot possibly ignore this. Trump’s problem is, as I see it, he is thinking like the US is his business. So in order to get his business (USA) ahead he wants to cut off the competitors by pricing them out. However, there is a YUGE problem! The problem is that consumer markets are now worldwide. The USA has a population of only 320 million out of 7 billion people in the world! Clearly, the US is lucrative market but its not the only one!

Protectionism: Moving the Economy backwards:

This is painfully simple to explain. The US used to be a protectionist economy from its birth in 1776 to about 1913. The federal government collect the majority of its income from tariffs on imports and exports. In 1913, the federal income tax  started raking in more than tariffs. It has ever since. After the world wars, the world started to rapidly globalize. The US lead the way. Now the US is in a tedious position with countries like China chopping at the bit to take first place. The point is that if the US wants to go back to pre-1913, before we were considered the world’s number one economy then we should enact tariffs. Speaking of China, that brings me to my next point.

Trump will eventually lose the trade war with China:

Recently I was able to acquire membership to the Wall Street Journal. (I got connections, kidding) I came across an article that caught my eye. Let me preface it with this: Trump has already approved 50 billion dollars worth of tariffs on Chinese goods. Now Trump is threatening to raise it to 100 billion dollars worth. The Chinese have responded that they will fight back if he does it. Here is the link to the article, its called Trump Weighs Tariffs on $100 Billion More of Chinese Goods by Bob Davis. (I believe they allow a few free reads if you haven’t gotten a subscription) Davis goes into detail about the possible effects of the tariffs. He also writes about Trump’s possible plans to protect industries like agriculture. I would encourage everyone to read since it gives a decent background on the situation.

My point here is that Trump cannot win against China. The Chinese hold a ton of our debt. In other words, they buy American dollar backed government bonds. (China also cheats on its exchange rate by basing it off these debt bonds) China holds leverage because of the holding of American debt and they import more to us than we export to them. Trump will lose because China doesn’t need US goods. The US is more dependent on China. Now you can how monetary policy plays a role in the contexts of tariffs and the economy.

Exchange Rate

One of the most important aspects that any government can control is the exchange rate. The exchange rate or currency exchange rate is the value of one currency in relation to another. For example: 1 US dollar is equal to .81 Euro. Currency exchanges can done in every currency. One of the ways that the exchange rate help with Trump’s trade war is through making our money more valuable or less valuable. Unfortunately, its a great tactic because it can backfire. In a circumstance, where Trump decides to have the US Treasury take money out of the money supply or circulation. A common used is called deflation. Which refers to increase of purchasing power of money.  This usually helps everyone because less money is worth more. However, in regard to China, it would probably strengthen the Chinese position.

make the dollar worth less, it would help devalue the debt held by the Chinese. Trump would simply tell the US Treasury to print more money. However, the drawback is that it would cost more to pay back debt. It would also decrease the buying power affecting nearly everyone except the super rich. Its also called Inflation which is my next topic.

Inflation

Inflation is often seen as a bad word. Its often used to describe the fall of prices and purchasing power. There is some controversy about how its calculating using CPI or Consumer Price Index, which is explained here. Now the important thing about inflation is that it can have serious consequences.  One consequence I mentioned was decreased purchasing power. Purchasing power is very important especially everyday people like me and you. Many of my anti-minimum wage arguments on center on this exact principle. Having money be worth less means that you have work harder to make more to buy less. For example, inflation might bring your regular grocery bill from 100 dollars  a week to 150 dollars a week even if the prices of food remain about the same. The reason is because each dollar may lose 10 cents in value. (The math is a little complex)

What does inflation mean for Trump’s trade war? There is good and bad news. The good news is that Trump could try to deflate the value of the Chinese held US debt. The consequences would be as mentioned above. This method would disallow the Chinese to sell off the debt without losing value. The bad news is that even if the Chinese are forced to keep it, America would have a harder time paying it back. Trump also has to be careful not to print too much money.  The problems that arise can be dangerous for the domestic economy. Money circulation works in a supply and demand curve. If the value of money is too high or too valuable than one can print more bills to help lower it. This is rarely a problem, except when considering exchange rates, imports and exports. If the value of money is too low than one could take money of the supply to help increase its value. So really its a supply/ value curve.

To conclude: Trump’s Trade War is not easily winnable. He obviously has some tools to work with. I also read recently that he is rethinking the Transpacific Trade partnership or TPP. I think its interesting because if the countries currently in the agreement allow Trump re-join and set the rules for trade than it will the US control over trade especially in regard to China. The TPP is a trade agreement that actually just regulates trade in certain industries. Trump withdrew because of global warming clauses and “unfair” regulations.

I can write more on TPP soon because I find it interesting. Also a Syrian Bombing post is coming soon.

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