Category: Economics

By George! I Think He’s Got It!

Economics

Daniel Jupp on what Trump is actually doing with tariffs:

Trump and many other MAGA figures operate on a completely different level from the mainstream NPCs with their programmed 80-year devotion to failed systems, failed institutions and the failed economic theories of an expert class who carefully managed their way to creating a Chinese monster ready to devour them while turning their own countries into increasingly backwards indebted sh*tholes.

The status quo is set up to ensure that China benefits from Western nations declining and failing, while a small number of Western globalist traitors profit from that. The vast majority of ordinary workers find they now live in countries which are falling apart but still claim to be rich. Their living standards and opportunities relentlessly diminish, their towns have no industries, and the best they can hope for is a welfare payment that keeps them in dependent poverty. At the same time people with no skills and backward attitudes are imported by the same economic genius consensus that shifted all manufacturing to China.

And Trump is attempting to stem that 80-year-old tide.

Great Idea, Never Happen

Advice, Economics, Taxes and Theft

Turning Britishland into Singapore?  It’s an intriguing concept, as explained here.  An excerpt:

There is nothing new in the comparison between modern Britain and circumstances in Singapore when it gained independence in 1965. Like the UK following the Brexit referendum, Singapore was involved in a rancorous divorce from a much larger geopolitical entity that left it facing an uncertain path. For one island’s withdrawal from the European Union in 2016, read another’s split from the Federation of Malaysia 55 years ago.
As many a minister has pointed out in recent years, Singapore went on to conjure an economic miracle. In the space of a generation, it has transformed itself from a country where the average citizen was two and a half times poorer than the average Briton, to a hotbed of soaring prosperity where total economic output is now 70 per cent higher than in the UK.

Here’s what the Brits would have to do, though:

In a country where the average monthly salary is about S$70,000 (£40,000), [Singapore] residents pay income tax of just 7 per cent – less than half of the 20 per cent charged in the UK – while a salary equivalent to £46,000 would attract 11.5 per cent tax.
The individual tax ceiling is 24 per cent, payable only by those earning more than 1 million Singapore dollars; the equivalent rate in the UK is 45 per cent, a bracket that comes into play for anyone with a salary of more than £125,140 (about 217,000 Singapore dollars).
The country’s more favorable tax regime extends to corporation tax, which stands at 17 per cent in Singapore compared with 25 per cent in the UK. There is no capital gains or inheritance tax.

Cut and eliminate taxes?  In Britain?

Hence the title of this post.

Preparing For The Better

Business, Economics, Trumpism

We always talk about “preparing for the worst”, but there’s an equally-compelling reason to prepare for the opposite.  Here’s a good example of this.

I see that POTUS has increased the logging quota on federal lands by 25%, to the consternation of the Usual Idiots.  Ignoring their wails (which is good advice anyway), his reasoning is sound:

The new order serves two purposes. One is to control fires. President Donald Trump said in January that the Los Angeles wildfires were partly caused by California Gov. Gavin Newsom’s refusal to clear brush and dead trees.

The other purpose, though unstated, is likely to increase the supply of lumber and head off potential price increases due to tariffs on Canadian lumber, which could have a cascading effect on the American construction industry.

The second reason is actually the better one.  Of course we should not allow ourselves to be held hostage by the Canucks over timber — and in any event, the more self-sufficient a nation is, the better — but the very last sentence is equally telling.

You see, with Treasury yields falling (meaning that U.S. debt is being bought out — a Good Thing), what will follow the drop in yields is a drop in interest rates, which means that housing will become more affordable.  And the construction industry cannot afford to be choked of its timber supply if building costs are to be contained.

As it is, construction companies face potentially higher labor costs because all the cheap (illegal, lest we forget) laborers are being deported — meaning more citizens working ergo more taxes being paid as opposed to untaxed dollars just being sent south of the border — so if the builders get cheaper and more-plentiful timber supplies, everyone wins.

I don’t see too many downsides to this — it’s a “two (actually three) birds with one stone” scenario — but this is after all a fairly superficial overview because I don’t claim too much expertise in this area to dig more.  Am I missing something?

That Tariff Thing

Business, Drive Time, Economics, Gummint

Ignoring any sensationalism from the Daily Mail  (like ignoring rapaciousness from the IRS), I see that Britishland faces a 10% tariff hike.

Which, using Kim’s patented Law Of Ten Method, means nothing.  (The corollary to said law, when applied to budgeting, says that you can always take 10% off anything without much or indeed any problem.  This is true of a household or corporate budget.)  Remember too that tariffs are not applied to the retail sale price — i.e. what you pay for them — but to the cost of goods in the home country.  Even so, I expect that U.S. retailers will eat some of any wholesale price increases, so the retail cost of goods to the consumer will not be that onerous.  Especially after we’ve just gone through Bidenflation. [25,000-word rant on that topic deleted]

I see this, with amusement:

The UK currently exports around £60billion worth of goods to the US. 

Almost all of these goods will now be taxed 10% to send them to the US, making it more expensive.  

Within this £60billion, British cars make up just over £6billion of the exports. Trump last night announced a 25% tariff on all imported cars, again making it more expensive, and less attractive, to buy UK-made motors.

So those Rolls Royces, Bentleys and NuJaguar Duracell cars are going to cost more (not the full 25%, as I expect that the manufacturers thereof will eat at least part if not most of the tariff).  Somehow, I’m pretty sure that the Murkin buyers (plutocrat scum) of said luxury items will not be  driven away by what is not a significant price increase.

Doubtless, my post-lottery Eagle E-type will cost more:

…but I’m pretty sure the lottery winnings would absorb the hit with little notice.  [/snark]

As for companies like AstraZeneca (the Covid guys) with their ~5,000% profit margins, my heart bleeds custard, the chiseling scum.

The Euros (20%), on the other hand, may have a harder time of it, and the Chinese (34%) harder still.  Whatever.  Peruse the table below, and feel free to comment about any of the countries that you may know about.

The Balkans are not listed, but I’ll be curious to see what if anything happens to the price of, say, Prvi Partizan ammo.

Finally, just remember that the United States is the world’s largest market for just about everything made in that world, so if prices rise too high, Americans will just stop buying that imported shit.  Which suits me just fine.  I’d like to see a whole bunch of textile mills, for example, re-open in places like Mississippi, who could sure use the jobs that they lost to the cheaper sweatshops in Asia in not-so-long-ago times, when the Finance assholes moved their operations abroad.

Interesting times.

Great Idea; Never Gonna Happen

Economics

I beseech all of you to read this article in full.  Here’s a taste:

Put simply, Trump is trying to beat countries with a stick until they agree to dismantle red tape that is holding back global demand for US goods and services. America is resorting to tariffs for one main reason. Over the past four decades, many countries have followed the US in lowering their tariff regimes, but they have not torn down regulatory barriers, or dealt with anti-competitive distortions. 
Trump’s masterplan is to create a new “coalition of the willing”, with the world divided into those who welcome competitive dynamism and those who cling to stagnation.

Then the writer puts forward an argument which contains so much common sense that it makes adopting it a slam-dunk for even the most foolish and doctrinaire of governments.

Which is why Britishland’s Labour Party will never adopt it.

Bad Pennies

Economics

I don’t like this latest thing by the POTUS:

President Donald Trump announced he had instructed Treasury Secretary Scott Bessent to have the Treasury Department stop making new pennies, explaining that it costs more than two cents to make them.

Yes, it makes sense on a facile cost : benefit basis, but what it does is surrender to the trope that inflation (created by government in the first place) has rendered the penny valueless.

Why not work to rein in inflation and lower prices so that a penny becomes worth something again?

Oh wait;  that would be more difficult than just quitting on the penny.