Wednesday, July 11, 2018

for want of a nail

For want of a nail...the shoe was lost...for want of a shoe the horse was lost...for want of a horse...the knight was lost...for want of a knight the battle was lost. Ah...that needful nail. Might the trade barriers fetch a similar result?

Historically...the answer would be "yes". Take King George...for example. He wanted the colonies to buy British products instead of French Caribbean junk. Hence...this REGAL MASTER imposed the 1733 Molasses Act on the colonies who simply smuggled in the molasses needed for rum-making...avoiding the BRITISH CUSTOMS AGENTS and their 10,000 Redcoats.

Miffed by such circumvention...KING GEORGE and his erstwhile 1764...imposed more trade barriers...more taxes on imports...more burdens heaped on the colonies. KING GEORGE wanted Americans to drink more PORT WINE...a British product...and...leave Spanish Madiera alone....never suspecting colonists drank rum not wine.

Sensing something not yet right...KING GEORGE imposed the Townsend Act and the Stamp Act...two nasty taxes the colonists hated. When Boston discovered a tax on their tea...the BOSTON TEA PARTY arrived and revolution bubbled forth. When the Brits blockaded Boston harbor in 1774 in an attempt to starve the colonies...that too failed...because America was already a FOOD and FIBER EXPORTER...their storerooms were full.

President Trump cannot cajole socialists into loosening their grip. The hassle and hinder of tax-on-imports only cements the power of the would-be masters of Europe and Asia. Big Don was correct when he told the G-7 that all trade barriers and taxes on imports should be deleted and permit competition, efficiency, comparative advantage and freedom to work the magic that combo has always delivered. VIVA TRUMP!