How to turn around a failing economy.

I watched a TV program a few years back, which had Barack Obama standing up before a live studio audience of thirty or so people and answering any questions they might care to throw at him. It was more than obvious the audience were hand-picked not to ask anything awkward, and judging by the slick facility with which he answered every question, and bearing in mind he doesn’t have a great reputation for thinking quickly on his feet, he’d obviously been fed the questions beforehand and answered without all his usual long pauses when asked anything unexpected.

Despite the stage-managed phoniness of the whole thing, I was struck by one member of the audience who stood up and told the president he’d just lost his job because the factory he’d worked in for years had closed. He was neatly turned out, a working man with that steady look of a family man dressed by JCPenney, the next stop nearly on him was forty, and his question to Obama was actually quite simple – what was the president going to do for men in his position?

Obama warbled on for a moment with vague mentions of retraining and courses and but finally gave him what was supposed to be the truth straight on the chin. Take it like a man and sit back down. Such manufacturing jobs were gone and they wouldn’t be coming back either, he told him. It was just an inevitable side-effect of globalisation, he explained. Basically, there was nothing that could be done. You could read the reaction in the man’s face – there’s no way I could retrain to dick around with computers or flog house insurance to my neighbours who’ve got no money anyway, and just to add to my golden employment prospects, I’m black.

Just before he sat down, there was a measured pause where he stared at the president and his smouldering thoughts were easy to read. Is that all you’re going to do, you glib polished bastard, just say prosperity has moved offshore and I’ll never have another full-time job again? Is that it Mr. President? Is that really all you can say? All you can do? Well, thanks for nothing, or stronger thoughts to that effect.

I could understand his anger, his sense of abandonment and his frustration at supposedly being at the complete mercy of massive global economic trends that had stripped him and his family of their modest prosperity, and there seemed to be nothing that could ease, never mind stop, such carnage happening to thousands of other working men like him and the families who depended on them.

But what he was being told was wrong.

Despite what he’d been given to understand, it wasn’t globalisation that destroyed his livelihood and reduced the manufacturing heart of America to something referred to dismissively as the rust belt, but the totally foreseeable end result of decades of disastrous international trade agreements that had the effect of tearing down American factories that were then immediately rebuilt in foreign countries, while American workers moved onto a lifetime of welfare support and food stamps. The goods they’d formerly made were now manufactured abroad and imported back into America for sale.

That whole process of the industrial destruction of the American manufacturing base juddered to a complete stop within 24 hours of Trump’s inauguration. He did two things immediately. The first was he reminded manufacturers of his campaign promise. They were free to shutter factories in America and produce their goods cheaper offshore. However, he was equally free to slap on punitive import tariffs of their goods as they came into America, which he left them in no doubt he’d do no matter how big they were.

The other thing he did that first day, was to withdraw America from negotiations to be a member of the Trans-Pacific Partnership (TPP) trade agreement, the details of which were still being thrashed out between various countries on the Asia-Pacific rim. It was obvious where any such agreement would lead – America was to become an import tariff free zone which would therefore get flooded with cheap goods that would further damage its industrial capacity, which was great for everybody except America. It would be in all but name the finish of American manufacturing.

Quite literally, within a month or two of Trump grabbing the reins of the economy, thousands of jobs were saved as plans by various companies to move production offshore were no longer economically viable in the light of the tariffs Trump would stick them with if they tried to repatriate either the goods or profits back into America.

People who were going to build manufacturing capacity outside America and enjoy flooding it with cheap tariff-free goods were confronted with a stark decision to make about their long-term plans; either manufacture abroad and accept the import tariffs Trump would undoubtedly levy on their goods, or manufacture in America. Most, quite sensibly, are opting for the latter option, and yet again it’s the ordinary American worker who’s the big winner and fuck Obama’s supposedly unavoidable side-effects of globalisation.

He also implemented a crackdown on illegal immigration, which was providing a steady stream of cheap cash-in-hand labour that was pricing the American worker out of the lower end of the jobs market. Leaving aside the liberal howls of righteous indignation, it’s the poorest Americans who’re hardest hit by illegal immigration, never mind the accompanying third-world crime wave that seems to overwhelm the poorer neighbourhoods they both live in.

The organisation which is the biggest consumer of goods and services in America is the government. With that sort of buying power, you get to call the shots, so Trump simply put in place a federal policy of buying American goods, produced in America and by American workers. Goods with any other provenance would not be bought unless they were unobtainable within America.

With these policies, combined with others on a smaller scale to get America back to work, it’s estimated that he’s created over two million jobs in the past year, and I sincerely hope the man who posed that question to Obama is one of them. The signs are very encouraging on that particular front – unemployment among black and Hispanic American workers has fallen to a historic low never before recorded.

The next thing on his agenda, and every man and his dog knows it’s coming, especially after him junking TPP, is America’s complete withdrawal from the North American Free Trade Agreement (NAFTA). Like a lot of nice sounding trade agreements where everybody is theoretically supposed to benefit, America, because of abuse of it by other parties, has suffered grievous damage because of its involvement in it. The abuse is quite is quite blatant too. It was designed as a tripartite agreement between America, Canada and Mexico. Goods were supposed to flow freely between all three countries, but the reality was quite different.

The US is by far the biggest consumer economy of the three, so most of the flow of cheap goods were anyway going to be directed into it, and because of cheap labour and a host of tax breaks to build new factories to produce those goods, both Mexican and Canadian manufacturing flourished while American production capacity shrank and factory after factory closed. To compound the problem, people like the Chinese saw the obvious loophole to get tariff-free access to the American market.

They simply financed, with a host of local grants and tax breaks of course, the building of factories in Mexico and Canada. The factories produced essentially Chinese goods, made incidentally with Chinese materials shipped in, and then proceeded to flood the American market with the eminently predictable destructive effect.

This strategy also leads to what’s called dumping in trade circles. You simply flood a foreign market with goods which are distinctly cheaper than the ones made locally, because they’re either subsidised, directly or indirectly, or just lost leaders, and keep doing so until the local factories making that product go under. With them gone, you’re then free to raise prices as much as you like, because by that time, you’re the only game left in town.

The Japanese pioneered dumping to grow abroad, but eventually the penny dropped with other countries, and from then on any goods from Japan attracted a hefty import tariff to both equalise the price and to protect domestic manufacturing. By the way, that’s the reason the Japanese economy has been more or less stagnant for decades. They’ve nowhere to expand into without getting crucified by tariffs. In the end, chickens do come home to roost.

Early on in his administration, Trump made an example of such practices with Canada, which was dumping cheap timber onto the American market. He gave them fair warning which they ignored as usual, then slapped a 30% import tariff on Canadian timber imports, and back dated it three months for good measure. Suddenly, the American timber industry has stopped contracting, even starting to show some modest growth as it plugs the gap left by reduced Canadian imports.

Pretty boy Justin screeched a bit but eventually bit down hard into his pillow and decided to move onto some other crisis he could actually handle, like mansplaining to a questioner they shouldn’t use the word “mankind”, but rather talk about personkind. With muscular leadership like that, it’s no wonder everybody is legging over Canada these days.

Trump will pull out of NAFTA this year or next, and the only, and obvious, way for Mexico and Canada to go forward is to negotiate bilateral trade deals with the USA. Any other course would deliver a shattering blow to their economies, especially Mexico’s. Given that they’ve got nowhere else to export their goods into, I imagine the terms of the trade deals to be struck will first and foremost protect American industry and workers. What happens in Mexico and Canada as a result is simply not his problem.

Mexico has gone very quiet about NAFTA, probably because they have a sneaking suspicion any deal they reach with Trump will perhaps be contingent on paying for a certain wall along the US border which will be just as strong as the one they currently have on their southern border to keep illegal immigrants out.

Canada, under the redoubtable Justin’s leadership is threatening to strike out on a much bolder path and unilaterally withdraw from NAFTA. I’m sure this course has much to recommend it in some alternative but deranged universe where all the Canadian industrial production that used to go over the border into the States, can now be dynamically redirected to such fast-growing consumer hot spots as Albania or Turkmenistan, but I must say I’ve my doubts about that one.

Once Trudeau has got over his usual attack of piss, wind and posturing, the inevitable deal with America will be struck, with the only question being how many arms and legs Trump decides to hacksaw off him if Trudeau is let anywhere near the negotiations. The art of the deal does include an element of grownups playing hardball. Trudeau has some sort of fantasy about striking a bilateral trade deal with China, if only as leverage in NAFTA horse trading, but doesn’t realise trading with China is always a one-way street with them. Once you let them in, they’ll flood you out with cheap goods, which would inevitably decimate Canadian manufacturing.

Trump will never allow Chinese manufactured goods to be indirectly funneled into America via Canada, even if that means slamming the border closed. Never going to happen.

Obama and Clinton, are supposedly globalists but to my way of thinking, they’re venal creatures of a much simpler kind – just greedy corrupt little politicians with their hands out collecting so-called donations from every big corporate sponsor. Obama was handsomely paid not to resurrect the financial legislation Bill Clinton took off the statute books which would have prevented the financial melt down of 2008, and Clinton slammed the doors of her Foundation the week after she lost the presidential election, because she knew it wouldn’t be getting another penny from any “donors”. The last thing they ever had any concern about was the American worker. It was always about the money.

Trump, on the other hand, has totally different priorities. Number one is America and the welfare of its people – anything else is a distant second. He is going to bring American manufacturing back from its near-death experience and get the workers off the unemployment lines and back into full-time jobs. He knows everything flows from there and he’s been remarkably successful over the last year. Pulling the plug on NAFTA will seal that part of his broad economic objective, putting America back on a path to strong growth.

You see, once you decide on the simple policy of putting America first, rather than last, all those wealth destroying things about which nothing can supposedly be done, get fixed real quick, and the economy responds almost immediately.

©Pointman

Related articles by Pointman:

Zugzwang.

How to get run over by the Trump juggernaut.

Find them, fix them and then destroy them.

Click for a list of other articles.

 

Advertisements
Comments
54 Responses to “How to turn around a failing economy.”
  1. Margaret Smith says:

    As I see the damage being done here in the UK how I wish we had Trump. Even the least left paper here yesterday devoted a big front page picture and page 3 article to laughing at Trump’s wind-blown hair. They do sometimes mention the good things going on but somehow contrive to infer that these have happened by good fortune in spite of the buffoon in charge. Or he has managed some decent outcomes while producing childish tweets (missing the point completely).
    Trump has plenty of supporters here, though.

    Liked by 1 person

  2. Back in 2002, my job got exported to Hungary where wages were about 1/5 of the UK rates. No relevant jobs locally apart from stacking shelves, but I didn’t personally do badly out of it because I took the early retirement option, and it gave me time to solve some physics paradoxes that had always bothered me. It’s obvious that businesses will go *somewhere else* if they can make more profit there, and if there are no barriers to importing the goods back to the country where they’ve closed their factories.

    What Trump is doing in the USA is so obviously financially sound, and like Margaret above I think the UK (and the EU) could usefully do the same. Reduce the regulations burden, reduce the taxes, and business will boom and the actual tax-take will rise even though the rates have reduced. The Laffer curve was known a long time before Laffer restated it and gave his name to it.

    Trade is fair when the people doing the work get comparable wages. If the wages are poverty-level in one country, though, and it exports products to a country where wages are higher, then the jobs will disappear from the higher-wage country. That seems so obvious that it seems amazing that the politicians ignore it. People will move from a low-wage area to one where wages are higher, too, if they can. Net result is that the two countries both end up with a lower average standard of living, since the best people have left the poor country and there is a lot more unemployment (since far fewer unskilled jobs) in the richer country. Trump is reversing that trend, which has started a resurgence in the USA. He’s looking at the longer term, whereas of course globalisation only leads to short-term gains for a few people who were already rich.

    Liked by 1 person

  3. mrmethane says:

    The Canada-US softwood lumber problem has been around for a long time, and isn’t exactly dumping. It is at least partly entangled with the big forest products companies in the USA who BID on timber rights. They bid high, forcing smaller firms out of contention, and raising the book value of unharvested timber. And establishing a “price” benchmark for judging other countries’ timber pricing. The structure in Canada is different, and not inflated as a result of those bidding and quasi-monopolistic strategies. Canadian timber does NOT enter the USA at prices lower than in the Canadian domestic marketplace, which is technically one of the bases for a dumping judgement, but the logic being used by the USA is that Canadian “subsidies” are in play. Complex, and at least partly the result of US firms’ thumb on the pricing scales.

    Like

  4. philjourdan says:

    It is always a pleasure to read your take on what is going on in America. Not only because of the keen insight, but also due to the insights I had not even considered!

    Based upon your record so far, I would say you spend a lot of time studying what is going on over here. Or perhaps you just have the wisdom of extensive experience colored with a bit of cynicism.

    Your suspicions on the Clintons and Obama (and indeed you can extend it to most politicians in this country – of both parties) are correct. The problem with the “ruling class” in America is that so few of them actually are working Joes and Joans. Even the ones that are not born to politicians, are from the more well to do and come from occupations where actually competing is not a real necessity (Doctors and Lawyers). So they have no business sense. They know about how to kiss behinds and schmooze with leaders, but are more of the “Marie Antoinette” mold than the “Joe the Plumber”. Indeed, the arrogance and ignorance of Nancy Pelosi (minority leader in the House of Representatives) is a perfect example where she calls $1000 bonuses “crumbs”. To her, it is (and even to me at this late stage in life where $1000 is a cheap gift for my wife). But to most people, it is significant (and I can easily remember when it meant the difference between paying Utilities AND the mortgage, or letting one slide). She is being called the 21st century version of Marie for good reason.

    Trump is also from that group of folks. He has never really wanted in his life. But he has made it a point to get to know those who are not from his group. That is probably where he gets his crassness from (and which endears him to most working Americans). He is no politician – and even after 2 years of seeing him say the wrong things constantly (by a political definition of wrong), the others in the “Ruling Class” either refuse to understand that, or cannot understand that.

    He is a billionaire “Joe the Plumber”. And even if I do not like all he stands for, I love what he is doing.

    Liked by 3 people

    • richard says:

      YES! A Pointy article with my cup of coffee!! The best? (close!)

      Like

    • rapscallion says:

      Philjourdan
      “That is probably where he gets his crassness from (and which endears him to most working Americans).”

      I think that’s a major part of his charm. Americans tend to be like most of us – plain speakers.
      Similarly that was part of Farage’s appeal – he, like Trump actually answer the bloody question instead of uttering the usual “form of words” a la Blair.

      The other important point which you allude to is that he knows how the working man thinks, he gets his priorities, and that’s almost certainly because he’s spent a lot of time with them in his various businesses; and that’s the other thing, he’s been in business, so he knows how it works whereas most politicians wouldn’t know a business if it bit their backside.

      Like

  5. I retired from full time employment in 2002. I soon became bored and wanted to return to work but realized I could no longer handle a challenging full time job. Then I remembered Bernard Shaw who said “Those who can……do, those who can’t…..teach”. (I hope I got that right but I am too lazy to look it up).

    Now I teach fiber optics on a part time basis and even with Obama in charge it was easy to find as much work as I could handle. Now Trump is in charge employers have sharply increased their training expenditures (training is a “Leading indicator”) so I may have to hire some assistants,

    One of the things I love about the USA is that nobody cares that I am 80 years old. If I was doing what I do in the UK I would be criticized for depriving a younger person of employment. That is almost as insane as the French reducing the working week in the hope of reducing unemployment!

    Liked by 2 people

  6. Pointman says:

    Four Million Dropped Off Food Stamp Rolls in One Month.

    https://thepoliticalinsider.com/food-stamps-drop/

    Pointman

    Liked by 1 person

    • When jobs are easy to come by the government gets more cash in the form of income taxes (despite lower marginal tax rates) and expenditures for welfare fall. A “Double Whammy”?

      It reminds me of Maggie Thatcher selling off “Council Houses” to the people living in them. The government got a huge mountain of cash while the cost of managing and maintaining the properties went away.

      Don’t you love it when governments do something that makes sense?

      Like

    • richard says:

      Seriously, why do we tax businesses?

      Like

      • philjourdan says:

        In the first place, Businesses are not really taxed. The owners are. But as for the perception of taxing businesses? The same reason that Willie Sutton gave for robbing banks.

        Like

  7. Keitho says:

    Donald Trump loves America and just wants us all to be happy.

    We are incredibly fortunate to have him as our President. He didn’t have to do this but thank goodness he has.

    Like

  8. I was watching Toulouse vs. Paris SG this afternoon.

    Before the match a section of the crowd was holding a large banner in English that read:
    “MAKE TOULOUSE GREAT AGAIN”

    Sadly it did not work………..Paris SG won 1-0 thanks to Neymar.

    It may be that even the French are sick of being second or third rate. At least some in Toulouse seem to take Trump’s approach to heart.

    Like

  9. Another Ian says:

    Pointman

    How not to turn an economy around and an early nomination for the next Pratt Awards

    “Graeme No.3
    February 11, 2018 at 8:50 am · Reply

    Another Ian:

    Mention of Pointman brings to mind his Annual (climate) Prat of the Year. Already strong support for a local boy must be rising.
    I refer to Tom Koutsantonis, S.A. Minister for Electricity and State Treasurer.
    He keeps saying that more renewables will lower the electricity bills in South Australia, which would have some appeal to the gullible with the election coming and a lot of people noticing that SA has the highest rates in the World.
    While the average wholesale price may well fall back to $100 per MWh once the summer peak demand is over, readers no doubt will know that on top of this renewables (esp. wind turbines) are given a Large scale Generation Certificate which Retailers are compelled to buy and lump that amount onto the consumers’ bills, so the net cost of renewbles is $185 not $100.
    So what Koutsantonis is saying is that if you take out something costing $100 and replace it with a renewable costing $180 then you will pay less??????
    A State Treasurer who cannot do simple arithmetic? Other States don’t copy….just send more GST.”

    http://joannenova.com.au/2018/02/weekend-unthreaded-198/#comment-1981658

    Like

  10. Another Ian says:

    “Canada shed a net 88,000 jobs during the month, a sharp stop to a recent stellar performance that saw 2017 produce the biggest increase in jobs since 2002. ”

    http://www.smalldeadanimals.com/2018/02/oh-shiny-prime-79.html

    Like

  11. Blackswan says:

    Rudyard Kipling wrote this observation of the ‘human condition’ almost a hundred years ago, and it would be good to think we’d moved forward in the last century but alas, it appears not to be the case. A timely reminder that while so much changes, everything remains the same.

    /// In the Carboniferous Epoch we were promised abundance for all,
    By robbing selected Peter to pay for collective Paul;
    But, though we had plenty of money, there was nothing our money could buy,
    And the Gods of the Copybook Headings said: “If you don’t work you die.”
    ///

    http://www.kiplingsociety.co.uk/poems_copybook.htm

    Perhaps Trump took the homilies of his Copybook to heart as he seeks a way to make a difference.

    Like

  12. Here is Obama mocking Trump’s pledge to bring jobs back to America. Take a look at minute three in this video:

    Obama asks “How’s he going to do that?” It turns out that Trump had a plan and the plan is already starting to wok.

    It used to be that experience in the military, in the US senate or as a state governor were immense assets for people seeking to be our president. Donald Trump will show why experience in running a business may be even more important.

    Like

    • Margaret Smith says:

      Fun video. Telling the worker that these jobs were never coming back, amid a lot of waffle and nonsense. Although supremely confident of success, couldn’t even mention Trump’s name

      “..we have cheap energy..”

      Didn’t this man say, a few years ago, that energy prices would necessarily skyrocket?
      I wonder if that was before or after this question time. Anyway, to mention cheap energy and ‘clean’ energy (meaning “carbon’-free) in the same reply is doubletalk.
      However, it’s hilarious saying he is trying to get other countries to hamstring themselves to create fair competition. China & India must have been laughing at the fool.

      Like

  13. Pointman says:

    Denzel Washington: ‘Criminal-In-Chief’ Obama ‘Tore Heart Out Of America’.

    http://yournewswire.com/denzil-washington-obama-america/amp/?__twitter_impression=true

    Pointman

    Like

  14. Russ Wood says:

    A similar “bring the jobs home” concept was set up here in South Africa by the ANC government. It was entitled ‘Black Economic Equity and Empowerment’ (BEEE) and was supposed to be preferential Government buying from black-owned companies. The ideal was that black South Africans would set up their own companies (similarly to the way the Afrikaners did in the 1920’s and 30’s) and thereby the whole set of ‘previously disadvantaged’ would benefit. Did they cocoa! The end result was that ‘connected’ people got to buy in (at a discount) to ‘white’ companies, or even that ‘black’ shell companies would get contracts they had no capability to complete and would then subcontract to existing ‘white’ companies. In a few cases, the idea worked, with some ‘black’ companies doing well, but in the main, it provided a marvellous capability for down and dirty corruption. For example, the National Railways company needed locomotives, so they bought them from a company set up specifically for this deal. This shell then went and bought the locomotives from a Spanish company, creaming off 25% on each one. And the taxpayer paid. And paid. And paid…
    Whenever a ‘well-meaning’ state interferes, the mass of people tend to lose out, and the riches go to the connected. Just about every Socialist state can be pointed to as an example.

    Like

    • Keitho says:

      Let us not forget that because the Chief Engineer on the railways had lied about his qualifications the supplying company sent locomotives they had built for another customer and they were 400mm too tall to operate across the South African rail network. Corruption, incompetence and fraud, the three emblems of South Africa.

      Like

  15. Pointman says:

    CAMPBELL’S SOUP Announces Shut Down Of Canadian Plant…Moving Production To U.S.

    https://100percentfedup.com/campbells-soup-announces-shut-canadian-plantmoving-production-u-s/

    Pointman

    Like

  16. Pointman says:

    White House Releases 55-Page, $1.5 Trillion Infrastructure Plan.

    https://www.zerohedge.com/news/2018-02-12/infrastructure

    Jobs, jobs, jobs.

    Pointman

    Like

  17. Pointman says:

    Trump releases 2019 budget with $3 trillion in cuts.

    http://thehill.com/homenews/administration/373413-trump-releases-2019-budget

    The other side of a good budget, cut back on $3 TRILLION of government spnding and pick away at the Obama national debt mountain.

    Pointman

    Like

  18. Blackswan says:

    This is a really enlightening ‘unrolled twitter thread” highlighting what Trump is up against in the matter of Trade and how he’s playing the Swamp off a break, giving them all the rope they need to hang themselves out to dry, except the MSM won’t cover it.

    https://threadreaderapp.com/thread/963637937996001280.html

    Some examples;

    14. I mean, openly admitting their agenda is to work against the U.S. middle-class, support mass immigration, and keep the U.S. economy on the “service-driven” path. That is what each of the invited Republicans said very clearly. All of them. ALL OF THEM. (without dissent)

    29. This is THE battle. This is the “trillions at stake“ part. Everything else is chaff and countermeasures. A war is being waged around these financial issues. Everything within the current DC conflict is downstream from the economic argument around these issues.

    30. For the corporately controlled Republicans and Democrats they view this battle as a zero-sum conflict. If they lose, they lost money…. if they lose money, they lost power. Their very lives, livelihoods, affluence and influence is dependent on victory.

    31. Victory means the elimination of risk; the elimination of the threat. President Trump is that existential threat.

    Like

  19. Pointman says:

    Republican Senator Ron Johnson Tells President Trump “it makes no sense to try and bring back high labor manufacturing jobs”…

    https://theconservativetreehouse.com/2018/02/14/republican-senator-ron-johnson-tells-president-trump-it-makes-no-sense-to-try-and-bring-back-high-labor-manufacturing-jobs/

    “Yesterday President Trump invited the media to keep their cameras on during a round-table discussion on trade. He did this for a reason. President Trump wanted the American voters to watch Republican politicians demand that he stop trying to bring manufacturing jobs to the United States.”

    Pointman

    Like

  20. ART BETKE says:

    Just have to let you know that this is completely false:

    Quote: “Early on in his administration, Trump made an example of such practices with Canada, which was dumping cheap timber onto the American market. He gave them fair warning which they ignored as usual, then slapped a 30% import tariff on Canadian timber imports, and back dated it three months for good measure. Suddenly, the American timber industry has stopped contracting, even starting to show some modest growth as it plugs the gap left by reduced Canadian imports.” Unquote

    Canada has never dumped cheap lumber into the US. Lumber is sold on the commodities market and it all goes for the same price.

    This trade dispute has been ongoing for decades. Tariffs have been leveled against Canadian lumber several times, Trump did nothing new.

    The US lumber lobby complains that Canadian lumber is subsidized. It isn’t. The claim is that Canadian stumpage is low which constitutes a subsidy. Not so, the American claims are based on false information. It’s all about the scaling methods used. (Scaling is the method of measuring the amount of wood inside a log on which stumpage is charged.)

    Canadians use a firmwood cubic measure, which determines how much sound wood is inside the bark, and stumpage is charged against all of it, whether it’s turned into lumber, sawdust, slabs, chips or anything else. None of it is free.

    Americans use a board foot scale, a calculation which determines how much lumber can be cut from the log using 1930’s sawmilling technology, and stumpage is charged against that lumber only. Waste material (slabs and sawdust) is free. But modern sawmilling technology gets much more recovery and up to 40% of lumber recovered is thus stumpage free. The US lumber lobby doesn’t admit this.

    So when the amount of stumpage charged is calculated against the amount of lumber actually produced, it amounts to the same. Canadian lumber producers have taken this issue to court in the US several times over the last 30 years, and they won every time. In American courts.

    Canadian producers lead the world in efficiency in logging, milling and recovery, the most technologically advanced lumber producers in the world, which means they can produce lumber cheaper than anyone else. Canadian lumber imports have not been reduced, they’re shipping just as much or more, paying the tariff and still making profits.

    Like

  21. Pointman says:

    “Jobs, jobs, jobs”

    Pointman

    Like

  22. Pointman says:

    Labor Department: US Added 2,553,000 Jobs Since Trump’s Election, Unemployment at 17-Year Low.
    https://nationaleconomicseditorial.com/2018/02/02/us-adds-2500000-jobs-unemployment-17-year-low/

    Well, It’s Happened: The Trump Tax Bill Is Becoming More Popular And Democrats Are Scrambling .
    https://townhall.com/tipsheet/mattvespa/2018/02/19/well-its-happened-the-trump-tax-bill-is-becoming-more-popular-and-democrats-ar-n2449400

    Pointman

    Like

  23. Pointman says:

    Real Disposable Incomes in U.S. Increase Most Since 2015.

    https://tinyurl.com/y77um4ls

    Pointman

    Like

  24. Pointman says:

    Trump To Announce Steep Tariffs On Aluminum, Steel Imports As Soon As Today

    https://www.zerohedge.com/news/2018-03-01/white-house-preparing-impose-stiff-tariffs-aluminum-steel

    Pointman

    Like

  25. Pointman says:

    Poll: Nearly 60 Percent of Americans Say Imposing Tariffs on Chinese Steel, Aluminum Is Crucial

    http://www.breitbart.com/big-government/2018/03/01/poll-nearly-60-percent-of-americans-say-imposing-tariffs-on-chinese-steel-aluminum-is-crucial/

    “Meanwhile, since the North American Free Trade Agreement (NAFTA) took effect in the 1990s, at least one million net U.S. jobs have been lost because of the free trade deal. About five million manufacturing jobs were lost across the country after NAFTA was signed.”

    Pointman

    Like

  26. Pointman says:

    Trump ramps up trade war threat with Europe as he threatens to tax cars ‘which freely pour into the U.S.’ after EU proposed stiffer tariffs on Harleys, bourbon and jeans.

    http://www.dailymail.co.uk/news/article-5458967/Trump-threatens-tax-European-autos-EU-retaliates-steel.html

    I’m sure the American automobile industry (what’s left of it after Obama, can make up the gap when BMWs get taxed out of the country.

    Pointman

    Like

  27. Pointman says:

    US Steel Restarts Two Blast Furnaces in Granite City, IL After Trump Announcement on Tariffs

    http://www.thegatewaypundit.com/2018/03/us-steel-restarts-two-blast-furnaces-granite-city-il-trump-announcement-tariffs/

    Pointman

    Like

  28. Pointman says:

    Defying Expectations, American Businesses Added 235,000 Jobs in February

    http://www.breitbart.com/big-government/2018/03/07/8282486/

    Like

  29. Pointman says:

    This Is the Greatest Manufacturing Jobs Boom in Twenty Years.

    https://tinyurl.com/ycjx9t4e

    Like

  30. Pointman says:

    Trudeau’s Canada Is Hemorrhaging Full-Time Jobs.

    https://tinyurl.com/yabxae46

    How not to do it …

    Pointman

    Like

  31. Pointman says:

    ‘Our Factories Were Left to Rot:’ American Workers Thank Trump for Ending ‘Betrayal’ of Unfair Trade.

    http://www.breitbart.com/big-government/2018/03/11/our-factories-left-rot-american-workers-thank-trump-ending-betrayal-unfair-trade/

    Pointman

    Like

  32. Pointman says:

    Mexico slaps tariffs on Chinese steel pipe for ‘unfair’ pricing.

    https://mobile.reuters.com/article/amp/idUSKCN1GK276

    ie. Mexico got the message from el Trumpo. No more “Mexican” steel made in China to be exported into America via the NAFTA back door or you’ll get tariffed.

    Pointman

    Like

  33. Pointman says:

    More steel jobs

    India Invests $500 Million In Two U.S. Steel Operations…

    https://theconservativetreehouse.com/2018/03/26/india-invests-500-million-in-two-u-s-steel-operations/

    and the art of the deal …

    KORUS Trade Deal – No Steel Tariffs For South Korea In Exchange for 50,000 Exports per U.S. Automaker…

    More jobs.

    Pointman

    Like

    • Blackswan says:

      India buying into the American steel industry after being made a $3.4million grant by the Texas governor, is interesting.

      It reminds me of the Indian buy-out and subsequent sell-out of the British steel industry, after absorbing millions in British taxpayer grants to their companies ……………..

      https://www.theguardian.com/business/2016/mar/29/tata-set-to-announce-sale-of-uk-steel-business-port-talbot

      Then the Thai-owned SSI company decided to moth-ball the Teesside Redcar plant ………..

      https://www.theguardian.com/business/2015/sep/28/redcar-steel-plant-to-close-with-1700-job-losses

      An effective way to decimate the British steel industry and destroy thousands of livelihoods.

      In Australia our steelmakers, aluminium smelters and oil refineries, ALL foreign owned, have been progressively closed down over recent years leaving us almost totally dependent on imports.
      Our coal, iron ore and bauxite as well as our oil reserves, are all foreign mined/extracted then exported and processed by foreign companies elsewhere and sold back to us at a premium. We are sitting ducks.

      We can only hope that foreign ‘investment’ in American steel doesn’t lead down the same slippery slope.

      Like

  34. Pointman says:

    Private payrolls grow by 241K in March vs. 205K est.: ADP/Moody’s Analytics.

    https://www.cnbc.com/2018/04/04/private-payrolls-grow-by-241k-in-february-vs-205k-est-adpmoodys-analytics.html?__source=sharebar|twitter&par=sharebar

    Pointman

    Like

  35. Pointman says:

    GDP Smashes Expectations, HITS 15 Year HIGH

    https://www.hannity.com/media-room/great-again-gdp-smashes-expectations-hits-15-year-high/

    It looks like Trump’s magic wand is still working.

    Pointman

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: