Tariff Foolishness

One summer never ends
One summer never begins
It keeps me standing still
It takes all my will
--The Motels

President Trump has been tweeting that tariffs are a great way to enrich the country.

....Tariffs will make our country much richer than it is today. Only fools would disagree. We are using them to negotiate fair trade deals and, if countries are still unwilling to negotiate, they will pay us vast sums of money in the form of Tariffs. We win either way......

— Donald J. Trump (@realDonaldTrump) August 4, 2018

He is just plain wrong. Tariffs might enrich particular groups--i.e., those shielded from competition by protective tariffs--but overall people are worse off.

As Ron Paul explains, tariffs on imports to the US are a tax--a tax paid by American consumers. Taxes never create wealth, nor do they raise standards of living.

Tariffs are a tax paid by the American consumer.

You -- Your money -- goes down the drain into Uncle Sam's pocket.

Tariffs are not paid by China -- not paid by the EU.

They are paid by YOU...the American citizen. Trump raises taxes on YOU!

More here: https://t.co/PAa7e9v8t6 pic.twitter.com/JOK9a3ceZi

— Ron Paul (@RonPaul) August 4, 2018

The president is foolishly offsetting gains from income tax cuts with tax increases in the form of tariffs on purchased goods.