This page was last updated on January 14, 2010.
Tariff is best way to reduce deficit; Jerry Miskulin; Beaver County Times; January 14, 2010.
I encourage you to review Mr. Miskulin’s body of work in the archives. Mr. Miskulin has written at least 50 letters since 2004 (I didn’t critique all of them.). Most (all?) are illogical and full of falsehoods (not just wrong).
In recent letters (here and here), Mr. Miskulin expressed displeasure with the tea parties and proclaimed
Below is a detailed critique of the subject letter.
“The only way we can bring down the federal budget deficit is by getting other countries to do it.”
[RWC] I wish I knew where Mr. Miskulin received his economics education.
“The tariff is a revenue producer.”
[RWC] Tariffs are a tool of trade protectionism and they almost always result in trade wars. They always result in higher prices for consumers.
“For example, when shirts were made in the United States by workers who were paid, let’s say, $7.50 an hour, the cost to make these shirts was, let’s say, $10 each.
“Stores then sold them at between $20 and $50, depending on the brand.
“Now, shirts are made out of the country at, say, 50 cents an hour, and cost $1.50 to make. Yet these shirts are still being sold at $20 to $50.”
[RWC] Note Mr. Miskulin didn’t tell us where he got his data.
“Why shouldn’t we tax these enormous profits? Every item imported into this country should be taxed to make up for our lost wages.
“If people can afford to buy these products, surely those who make money on labor costs and currency exchanges can afford to pay taxes on their products.”
[RWC] All companies that do business in the U.S. are already subject to our taxes, the second-highest (Japan is #1.) so-called business taxes in the world. Tariffs are over and above existing taxes and are intended to retaliate for alleged “unfair” trade practices.
“The closest thing we have to a cash crop or a large revenue producer is the automobile industry. Without it, we can never pay back our debts.”
[RWC] What?
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