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Obama and the Protectionist War Against the Poor

By William Anderson
Published: 16 September 2009

After President Barack Obama unilaterally slapped a 35 percent tariff on Chinese-made tires imported to the United States, I checked the Usual Sites to see if there were any objections to this latest government assault against lower-income Americans.

I flyspecked the New York Times, and while there were editorials and columns condemning Serena Williams’s outburst at the U.S. Open and a call for lawmakers to criminalize “texting” while driving, the was silent about the tariff. Likewise, I saw nothing on the sites that claim to care about the poor, from the leftist “God’s Politics” blog to the Daily Kos and the Huffington Post.

This should be amazing, but it is not. However, before I explain why I believe this latest presidential action to be especially harmful to the poor, let me first say that most people on the left who claim to care about the poor really don’t care what happens to them. Poor people are a great prop, a nice bit of background, for those who push the collectivist agenda. We know that throughout history, collectivism always has been a disaster for the poor, and from India to Cuba to North Korea to Haiti, state control and interference in peaceful, private exchange has forced many people to live in absolute squalor.

(India has been undergoing changes and has become friendlier to private enterprise, as has China and other former communist countries, but the Indian bureaucracy has been resistant in giving up its power over the lives of ordinary people. Nonetheless, whenever governments give up even some power to control economic exchange, we see higher living standards for large numbers of people.)

Why have these “we love the poor” leftists and left-liberals been silent in the aftermath of this terrible deed? It is because they are slavishly tied to labor unions, which have promoted this latest outrage. In fact, unions always have supported protectionism, from the infamous Smoot-Hawley Tariff to President Ronald Reagan’s “voluntary” quotas for Japanese auto imports.

On the other side, the people accused of “supporting the rich” have reacted vociferously against this new tariff. From the Wall Street Journal to the Foundation for Economic Education, writers have rightly condemned this new policy as being anticonsumer and a danger to us all. I will add one more argument against it.

Before doing so, however, I wish to point out that by historical and constitutional standards, the President is on shaky ground, made shakier by the abdication of Congress and the courts to “protect and defend” the Constitution. The Law of the land clearly states that it is Congress that has the power to levy taxes, and tariffs, be they revenue or protectionist tariffs, are taxes.

There is nothing–nothing–in the Constitution that permits the executive branch to impose a tax. While it is true that Congress has passed legislation that gives the president the authority to impose tariffs in certain situations, nonetheless Congress has done so in violation of separation of powers, and the courts have done nothing to stop it.

As for the tax, it is imposed on something that anyone who drives needs: tires. What happens when government artificially raises the price of a good–which is the intent of Obama’s latest move? People buy less of it, and that includes tires.

What will happen–and this is an absolute certainty–is that people will put off buying new tires and will drive longer on their worn ones. This will lead to more accidents, more injuries, and more deaths. People in lower-income brackets will be more likely to bear the brunt of this policy.

Obama imposed new tariffs (which will lead to retaliation by the Chinese, as we have already seen) to please some of the highest-paid workers in the world: American union members. The lower-paid workers in our country, however, will pay the deadly price, all in the name of “social justice” and “protecting American workers.”

8 Comments »

Reverend of hatred, you have let bitterness and unforgiveness take root and it has warped your mind! The innocent white people have suffered enough of your hatred and bitterness, we are not all ignorant racists, in fact most whites aren’t and never were, get over it! Your racial profiling shows you a hypocrite. God says to return evil for good not God Damn the USA. The kkk was founded by confederates who were the democrats, (learn your history before speaking falsely next time). It’s sad to see someone using hatred and revenge tactics in the name of God. You will have to answer to Him for that, because I am one of his own, and you spoke hatred against me. God will deal with others sins, “Revege is mine says the Lord”, it is not your place. You speak lies from Satan himself, and you have shown your fruits, that heart is full of evil. If you hate America so much, go back to Africa. I’m sure you’ll like it better over there. Instead of being oppressed by “white” people you will be oppressed by your own. MLK JR would be ashamed of you. Judge people by thier character not there skin, or political views. God says to love your enemies but you hate even the people who arent your enemies, but have the same color as some redneck white trash that put you down a long time ago. If America is so racist why is it that murders and crime percentages are overwhelmingly black against black and not white against black? Your people need to wake up ( & I don’t mean to say many haven’t, but not enough )and take responsibility for the social evils going on within your race and stop blaming it on the past.I could let my childhood being rough as an excuse to hate and remain a victim but I am bigger than that. You are only keeping yourself and your followers down by stirring up anger and unforgiveness. I pray God will have Mercy on those who have been decieved by your lies. It is not all there fault. I love ALL my brothers and sisters in Christ no matter what color and it is wrong of you to accuse me and my people of racism just because we don’t agree with your ideas on what is best for American people. It has nothing to with race for us, its you and people holding on to bitterness with the hang up on race.

//Christina J. Reeves
16 September 2009 at 11:20 am

Could someone post a link to official site (goverment etc), where is written about 35 % import tariff.

THX

//Dave
16 September 2009 at 5:14 pm

I wasn’t going to post, but a poster convinced me to. To Ms. Christina Reeves, I feel for your tiny brain. It must have worked so hard to pull that religious diarrhea from your ass. The man spoke, a truth. No where do I see anything about the presidents race, or his religious beliefs posted. The man spoke about law, something we are all held account to, regardless of our race or religion.

I am of the lower income bracket. I am college educated. I took basic economics. I understand what the writer was trying to convey. I don’t agree completely, as the president is in a tough situation. I think tariffs are the one tax which should have been settled since the civil war. In fact, I believe it is the only legal tax. However, no one said anything about God, African American, or anything else. He only states what is generally seen as an economic truth. What was left out was the substitution part of the equation, where by lower income people switch to used tires. (aka substitute with something of comparable quality at a lower price) Used tires are $5 to $25. I don’t see that changing much right now.

So please, keep your God out of this. I really don’t think he cares how much you use his name, or defend his truths. In fact, if I were God I would be angry so many people put me into so many arguments over non-sense. Leave God alone. He’s tired. Stop fabricating crap to gripe about so you can bring God up. I bet he wouldn’t want such an idiot representing him, because he’s God…he doesn’t need representation okay.

//Dody
17 September 2009 at 4:07 am

Great short and devastating example of unintended consequences! Once again government “fixes” problems by making them worse. This kind of article should be required reading in our public schools – fat chance! I’ll link to it on Twitter – every little bit helps.

//Robert D. Fowler
17 September 2009 at 11:49 am

FROM HERE:

People often say that tariffs are “taxes,” but another way to look at it is that protectionism is price control. So, instead of controlling prices to make foreign products less affordable, why not control them to make domestic ones more affordable? In another words, instead of forcing our country’s consumers to “buy America,” i.e., pay higher prices, why not force its companies to sell American, i.e., charge lower ones? That’s how you fight “cheap imports” — with cheaper domestics, not expensive ones.

And the objection would be what — production costs? If we can blank out the factors that determine whether you or I can afford to purchase a product, why can’t we instead blank out the factors that determine whether a business can afford to make it? And since those include labor, here’s the best part: When American products are priced (by the coercive state, not the free market) lower than imports, all the jobs at GM — from company head to company janitor — will be protected. Honestly, what’s not to love?

The bottom line is this: If GM isn’t going to give each of us a free car, there’s no reason why we should give GM a free ride, i.e., a “level playing field” where their competition is priced out of our reach. Let’s not have any nonsense that that car represents impoverishing “consumption,” while that ride constitutes enriching “production.” If American CEOs don’t consider it their patriotic duty to charge lower prices, then it’s damn well not our duty to pay higher ones.

//Barry Loberfeld
17 September 2009 at 11:53 am

Let’s not “force” anything. Enforce laws against fraud, otherwise get the government out of the way.
Kind of like a boxing match. No low blows, go to your corners, then come out fighting. And may the best man win.

//Dr. Steve
17 September 2009 at 3:33 pm

Dody,

Forget about Ms. Reeves. The woman is clearly beyond help.

The more pertinent questions are about basic economics and simple morality. What is it about the author’s position that you disagree with? Strip away all the blather about race and motives, and you’re left with a simple truth: Obama is using a power no person should possess to FORCE people to do things they otherwise would not do in a free society.

In this case, he’s using state power to benefit a small set of union workers at the expense of the poor. We all lose. I can only wonder what payoff he got for unleashing a stupid and ridiculous tariff on one small segment, only to risk an escalating trade war with a country that is propping up our economy with its lending!

Evidently, shooting himself in the foot isn’t good enough. Reload and obliterate the other foot. Obama’s ignorance defies description.

//Steve Hogan
18 September 2009 at 12:13 am

To Christina, first poster.
What are you trying to comment to?
You talked about race, bitterness, god & other gibberish nonsense that had nothing to do with the article.

The main point is that the price of imported tires will increase, which will hurt the consumer, among other negatives. There will be retaliation & it will be harder for the US to export to China, hurting other US workers.

The US actually needs to increase imports, to finance (via foreign investment)the massive gov deficits for the nanny-state.

//Randall Hayden
20 September 2009 at 9:36 am