In recent years, there has been a resurgence of the idea that protective tariffs can restore America’s economic greatness, based on the interpretation that they fueled our growth in the 19th century and can do so again in the 21st century. This claim isn’t just wrong; it’s dangerous. Take recent comments by the conservative pundit Oren Cass, who said “the way America went from colonial backwater to this globe-spanning industrial colossus was not free markets and free trade. It was aggressive protection of our domestic market.” Former President Donald Trump echoes similar ideas in his many pronouncements about why, if he’s reelected, tariffs will be a big and important tool to revitalize America’s economy. At a superficial level, it’s easy to see how someone could think tariffs promote domestic growth. As the Cato Institute’s Scott Lincicome rightly notes, “the issue [is] a classic case of correlation versus causation: Because tariffs were high during a period of rapid American growth and industrialization, so the argument goes, the former caused the latter.” Yet correlation isn’t causation. Tariffs weren’t the cause of American prosperity. Not even close. To begin, economist and trade historian Douglas Irwin points out that “rather than higher tariffs causing higher growth, the relationship could be spurious: land-abundant countries relied on customs duties to raise government revenue and also enjoyed favorable growth prospects, with little link between the two.” In 19th-century America — about as land-abundant as it got — the sectors that grew the most were services and agriculture, which were not much protected by tariffs. In addition, at the time, the United States was the net beneficiary of foreign capital investment, which resulted in the trade deficits that Trump so hates today. This inflow of global capital contributed to a burst of new technology and ideas, all put to the test in a free market. In other words, despite tariffs on some imported goods, America’s 19th-century economy was extremely open. While Irwin finds that the economic distortions caused by high tariff rates were relatively small, economist Brad DeLong reminds us that the harm (especially on exporting farmers and the domestic producers who had to pay higher prices for imported capital goods) outweighed the benefits to tariff-protected industries. The noneconomic costs of tariffs were also high. Tariffs fueled corruption and other profit seeking with no real value to society. Contributing to the Cato Institute’s “Defending Globalization” project, Phillip Magness writes that “high tariff protectionism continued to attract rent-seeking interest groups. The sheer extravagance of the public corruption around tariff schedule revisions came to a head in the late 19th century, eventually leading reformers to call for the abandonment of a tariff-based revenue system.” (That’s how we got the highly distortive income tax.) Also overlooked by those claiming that 19th-century tariffs made America great is that the country’s biggest import at the time was immigrants, who incurred no tariffs. As economists Cecil Bohanon and T. Norman Van Cott argue in “Tariffs, Immigration, and Economic Insulation,” weighing the impact of tariffs on economic growth without accounting for massive immigration — which increased from about 200,000 individuals a year in 1865 to more than 1,000,000 in 1910 — can only lead to questionable conclusions. They explain that “[t]he impact of high tariffs, clearly an insulating policy, was swamped by free immigration, a quintessential policy of economic openness.” Trump is an avowed restrictionist on both immigration and trade. And so, if a second Trump presidency brings higher tariffs and further immigration restrictions, we won’t be as fortunate as were our 19th century forebears. Making matters worse is that today’s economy is vastly different from that of a century ago. Globalization has interconnected markets and supply chains in unprecedented ways. Half of what Americans import are inputs they use to produce goods domestically. Tariffs on these imports increase production costs, making American products less competitive both at home and abroad. Furthermore, the service sector — comprising industries like technology, finance, and health care — now represents nearly four-fifths of the U.S. economy. These sectors thrive on innovation, skilled labor, and access to global markets, rather than on protectionist policies. Reimagining tariffs as a panacea for economic woes is not only historically inaccurate but economically unsound. The America of the past grew in spite of tariffs, not because of them. If higher tariffs are imposed today, history will not look kindly on those who imposed them. Veronique de Rugy is the George Gibbs Chair in Political Economy and a senior research fellow at the Mercatus Center at George Mason University. To find out more about Veronique de Rugy and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate webpage at www.creators.com. COPYRIGHT 2024 CREATORS.COM The post The Real Relationship Between Trump-Style Tariffs and Economic Growth appeared first on The American Spectator | USA News and Politics.

After what we have witnessed the past few days, there is no turning back.  Both sides are making final preparations for all-out war, and soon the Middle East will erupt in flames.  Almost a year ago, a lot of people out there didn’t believe me when I explained that the conflict between Israel and Hamas would eventually evolve into “the big war” in the Middle East.  But now there is no denying what is happening.  We really are on the brink of the unthinkable, and as you will see at the end of this article, behind the scenes someone is very happy because things are going exactly as he had hoped. If you tried to write a movie script based on the events that have transpired in the Middle East this week, everyone would reject it for being way too unrealistic.  On Tuesday, thousands of Hezbollah militants were maimed when their pagers exploded, and on Wednesday it was being reported that thousands of “walkie-talkies, solar panels and fingerprint recognition devices” that belonged to members of Hezbollah also exploded… Thousands of walkie-talkies, solar panels and fingerprint recognition devices used by Hezbollah fighters have detonated across Lebanon, killing 14 and wounding hundreds of people including mourners at a funeral, witnesses and security sources have reported. The second wave of carnage comes a day after thousands of exploding pagers used by the group left almost 3,000 people injured and a dozen dead, including civilians and children. Security sources have now confirmed that hand-held radios were purchased by Hezbollah five months ago, at around the same time as the compromised pagers. Lebanese media has also reported that home solar energy systems have blown up in several areas of Beirut. We have never seen anything like this before, and we will probably never see anything like this ever again. On Wednesday, explosions were going off all over Lebanon, and that was especially true in the city of Beirut… Hezbollah’s Al Manar TV reported explosions in multiple areas of Lebanon, and a Hezbollah official told the Associated Press that walkie-talkies used by the group exploded as part of blasts heard in Beirut. Ali Hashem, a journalist based in Lebanon, wrote on X: “Another round of blasts in different areas around south Lebanon and Beirut southern suburb. Devices in cars, motorcycles, and people’s hands are exploding.” It comes after videos from Beirut’s southern suburbs showed people lying on the pavement with wounds on their hands or near their trouser pockets. Can you imagine the paranoia that members of Hezbollah must be feeling right now? After everything that has happened, they have got to be wondering what devices will explode next. I have no idea how any of them can possibly watch the news in peace knowing that the television could be the next thing to go off. Apparently the walkie-talkies that exploded on Wednesday were originally made by a company in Japan… A Reuters reporter in the southern suburbs of Beirut said he saw Hezbollah members frantically taking out the batteries of any walkie-talkies on them that had not exploded, tossing the parts in metal barrels around them. Images of the exploded walkie-talkies examined by Reuters showed an inside panel labeled “ICOM” and “Made in Japan.” According to its website, ICOM is a Japan-based radio communications and telephone company. I really wish that both sides would decide that enough is enough and would sit down at the negotiating table. But that isn’t going to happen. After thousands of pagers exploded on Tuesday, Hezbollah responded by launching rockets into Israel… Hezbollah has launched its first rocket attack on targets inside Israel after pager blasts left almost 3,000 wounded and 12 dead in Lebanon and Syria, with the militant group vowing retaliation. Iran, which backs the group, has condemned Israel as being responsible for the blasts, which it labelled ‘mass murder’ and amount to the biggest security breach in Hezbollah’s history. And Israel is “pivoting its efforts toward the northern border” as it prepares for a final showdown with Hezbollah… Israeli political and defense officials ramped up their rhetoric on Wednesday indicating the IDF would be pivoting its efforts toward the northern border in a “new phase” of the war, amid escalating tensions with Hezbollah following widespread attacks on Hezbollah fighters in Lebanon attributed to Israel. Prime Minister Benjamin Netanyahu, Defense Minister Yoav Gallant, IDF chief Herzi Halevi and other officials all issued statements Wednesday evening which appeared to suggest a full-on war with Hezbollah was brewing, hours after a wave of explosions of walkie-talkies and other communications devices used by Hezbollah members across Lebanon caused widespread casualties, echoing a similar attack a day earlier that targeted Hezbollah-issued pagers. But I don’t expect Israel to go into southern Lebanon quite yet. As I discussed the other day, I think that Israel will wait until after Benjamin Netanyahu addresses the UN General Assembly at the end of this month. Speaking of the UN General Assembly, they just passed a resolution that very strongly condemns Israel… On Wednesday, the United Nations General Assembly approved a Palestinian resolution urging sanctions and an arms embargo against Israel. The proposal also included a demand from the Palestinian Authority for Israel to withdraw from the West Bank and Gaza within a year. The resolution passed with 124 countries in favor, 14 against, and 43 abstentions. It’s important to note that General Assembly resolutions are non-binding and will not directly lead to actions or sanctions against Israel. Israel’s Ambassador to the UN, Danny Danon, condemned the vote, saying, “This is a shameful decision that backs the Palestinian Authority’s diplomatic terrorism. Instead of marking the anniversary of the October 7 massacre by condemning Hamas and calling for the release of all 101 of the remaining hostages, the General Assembly continues to dance to the music of the Palestinian Authority, which backs the Hamas murderers.” Everything that is happening is making one particular individual in the Middle East very happy. For years, Saudi Crown Prince Mohammed bin Salman has watched Iran systematically spread Shiite Islam throughout the Middle East. This has greatly distressed Mohammed bin Salman and other Saudi leaders, because they intend for their brand of Sunni Islam to dominate the globe. If Israel is able to defeat the Iranians and their allies in this war, that would greatly please the Saudis, because it would fundamentally change the balance of power in their favor. Of course there will also be a tremendous global outcry for a Palestinian state once this war is over, and that is another major geopolitical goal for the Saudis… Saudi Crown Prince Mohammed bin Salman on Wednesday said the kingdom would not recognise Israel without a Palestinian state and strongly condemned the “crimes of the Israeli occupation” against the Palestinian people. “The kingdom will not stop its tireless work towards the establishment of an independent Palestinian state with East Jerusalem as its capital, and we affirm that the kingdom will not establish diplomatic relations with Israel without that,” the crown prince, known as MbS, said. The Saudis are just going to sit back and watch the Israelis do all the hard work, and then afterwards they are going to get the Palestinian state that they have always wanted. But ultimately, the unprecedented chaos that is ahead of us will not be good for anyone. We are entering a time of war, economic trouble, global food shortages and great political turmoil. Global events are building up to a grand crescendo, and it won’t be too long before things start getting really, really wild. Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com. About the Author: Michael Snyder’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com. He has also written eight other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today. The post We Are On The Verge Of “The Big War” In The Middle East, And Behind The Scenes Someone Is Smiling appeared first on End Of The American Dream.

??BREAKING: President Trump just paid his tab in a NYC bar using Bitcoin making this the first public crypto transaction by a president. pic.twitter.com/Df5PWFSsfR — Dom Lucre | Breaker of Narratives (@dom_lucre) September 18, 2024

?BREAKING: Reports Indicate There May Have Been A Third Attempt On Trump’s Life Approximately 20 patriots who attended Trump’s high-energy rally in Tucson are now reporting having to go to the ER immediately after the rally. The attendees all suffered from symptoms like… pic.twitter.com/QIBfC2wjsR — Alex Jones (@RealAlexJones) September 19, 2024

NEW: Retired general Steven Anderson says Vladimir Putin will be intimidated by Kamala Harris because she is a black woman who was the "product of a mixed marriage." Lmao. This is what propaganda looks like, folks. "[Kamala] is an inspiration. Not only does she bring hope and… pic.twitter.com/Jgc0Zeoise — Collin Rugg (@CollinRugg) September 18, 2024

from BANNED.VIDEO:  TRUTH LIVES on at https://sgtreport.tv/

by Martin Armstrong, Armstrong Economics: Governments are pushing the public to switch to smart vehicles to reduce fossil fuel consumption, but there is also a second motive – surveillance. This September, Ford filed a new patent to eavesdrop on riders. They plan to share this information with third-parties to personalize the advertisements riders hear. Ford […]

The right-wing Freedom Party of Austria (FPÖ), which is expected to win national elections this month, has vowed to  block all asylum requests from Muslim countries. EuroNews  The Austrian right-wing party FPÖ is set to win the race for the alpine country’s 20 seats in the European Parliament, first exit polls show. In a forecast […]