Nah, I won't recant. I'm going to stick with you on this.
Do I think other countries should have to pay a tariff for the luxury of selling goods in our country... absolutely. Do I also think our country should have more incentives for companies to manufacture here (mainly lower taxes)...absol-freaking-lutely. Both are good for America. Why can't we do both??????????
Making it more
expensive to import things is the same thing as saying make it
cheaper to manufacture here. It's the same damn thing.
Charge a tariff on imports to make them more expensive than goods produced here OR reduce the cost of goods manufactured here to make them cheaper than imports.
The first part - Make it more expensive to import into the US.
I think NAFTA was a disaster and has helped us get to this sorry state we are in.
http://upload.wikimedia.org/wikipedi...0_2010.svg.png
Do you know what I see in this graph? The trade deficit growing exponentially immediately following the NAFTA agreement even though it was relativity steady before it...
Free Trade is BS. If you want jobs then make it more expensive to make things elsewhere. Oh, you want the freedom to move your company to China...have at it. You get that freedom when you're in the US. It's the freedom to leave. But we have no obligation to give you ANYTHING once you're gone. What's so wrong with giving our own American people a leg up?
Second part - Make it cheaper to manufacture here.
I think the 40% cooperate tax that was cited is insane. But I don't think it's the main reason companies move overseas. The main reason would be labor costs IMO. (the company I work for did this). And I believe it is unions, not minimum wage, that creates such a big difference in labor costs in manufacturing. An example: "Foreign" car manufactures continue to build more plants in the US and increase the percentage of US-sourced components in their vehicles while "domestic" manufactures are further reducing the amount American manufactured components every year. "Domestic" manufactures are looking to cut costs, why? Well the cost of their cars isn't going down...so, um...they have to cut costs on components because the cost of their labor is going up.
I do think that corporate taxes should be lowered as an incentive to keep manufacturing in the US. But if it was taxes alone you wouldn't be seeing all the new Subaru, Toyota, Honda and BMW plants in the USA. Therefore I also think something
has to be done to keep labor costs down as well. Even if the tax rate is 0% it won't make a bit difference if it is a 95% savings in labor to just move it to Mexico. The free market isn't controlling labor costs, the unions are. And the unions have no interest in keeping labor costs in line with what the market will pay for the product they make.
Look, it's time we stop trying to find the one golden answer to our problems. We have a shit ton of problems that will take a shit tons of answers. Lower taxes, increase tariffs, kick the unions to the curb...we needs to start doing it all.