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Thursday, May 31, 2012

Tariffs and Limits

Today's news is dominated by political parties posturing as if they know how to solve pressing
problems with real answers. What we see happening in Wisconsin is only the beginning of desperate actions to come if we don't begin to come up with real long-term jobs. Is the pay scale we receive for a job important? Sure it is, but without jobs the pay scale does not matter. Politicians don't seem to get the effects of losing somewhere between 9% and 20% of our jobs. If we were at a 6% jobless rate, we wouldn't be experiencing mobs of people protesting the inability of states paying for all their financial commitments. Does this remind you of other countries around the world with the same problems and no answers? The only real answer that makes any sense at all is to bring jobs back home.

JOBS pay all our taxes. JOBS support the needs of individuals and families. JOBS help the human race realize its contributions to society. JOBS keep people's mind on the dream. JOBS support our existence in this world providing economic
stability. JOBS support our government on every level, federal, state,
county, and city.

To get an idea of one of the many problems with our economic stability in today's world, let's take a brief look at one of many trade agreements. Trade agreements are in place with every country in the world that wants to do business with the US. Probably the best known in the last two generations would be NAFTA, the North American Free Trade Agreement and this is only a sampling of the problems with these agreements. According to Wikipedia, "The goal of NAFTA was to eliminate barriers of trade and investment between the US, Canada and Mexico. The implementation of NAFTA on January 1, 1994, brought the immediate elimination of tariffs on more than one half of U.S. imports from Mexico and more than one third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all US-Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out in 15 years. Most US-Canada trade was already duty free. NAFTA als o seeks to
eliminate non-tariff trade barriers." NAFTA eliminated tariffs, a key tool in controlling the loss of jobs and generating much needed revenue to level the playing field.

Tariffs can be used to level the playing field for all countries involved. When imports are coming into this country at such a low cost that it creates an imbalance between those products and the products being manufactured here, import tariffs can be used to bring costs back in balance. These tariffs also will help to reduce the income tax rates. Lower income taxes allow for more spendable income, increasing economic stability. The same thing can be done for exports in the same manner. That's my thoughts, what's yours?

Coming next, we will talk about import limits that will further help to level the playing field and bring jobs back home.

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