Trump Announces Bold New Socialist Program! Can You Say Venezuela?

Trump said on Twitter on Friday that the U.S. will use its money from the tariffs to buy American agricultural products “in larger amounts than China ever did” and send it to “poor & starving countries” for humanitarian aid. The president indicated potential purchases of $15 billion from farmers. Soybean and grain futures held mostly steady after the announcements, while industry groups opposed Trump’s additional U.S. tariffs on China. Source

So, let me see. There isn't sufficient demand for a product. In a capitalist economy, we would say the market will take care of this as the farmers realizing there is no longer a demand for their product will quit producing the product or close the farm and seek another capitalist opportunity that is more profitable. Trump's plan is to pay farmers to keep producing a product that there isn't sufficient demand for with a guarantee the government will buy the product and give it away as "free stuff" at the taxpayers' expense. 

I am sure Woodpecker, Doc, Tom, and Boiler will come along shortly and explain how this is turning our country into Venezuela.  They surely wouldn't support a new socialist program, would they?  

Edited to add:  If they send these soybeans to emerging countries they will likely rot. 97% of the soybeans that are produced are used for animal feed. Unprocessed soybeans cooked or uncooked are dangerous for humans or animals to consume as they contain toxins. The 3% of soybeans that are used for human food are highly processed making things like meat fillers and soy milk. It is unlikely these poor countries would have the facilities to process the soybeans into food or even animal feed. Besides, what do you need meat filler for if you don't have any meat to eat?

Just more stupid cause and effect from the ultra confused mind of Mark. 

Looks like Doc is on onboard with this new socialist program.

Its only Socialism when Democrats do it.   

And Trump himself agrees.   He's telling his base that his 25% tariff on CHinese goods is a tax the Chinese will be paying.   No it isn't.  Thats a tax (50 billion dollars) paid by AMericans as a penalty to purchase Chinese goods within the tarrifed boundaries.

You can make a thoughtful argument for or against that policy  and I dont begrudge people either way.  But one thing is for sure - it is an act of Socialist intervention in the economy.    And the anti-Socialists in the tea party cant bring themselves to acknowledge that.

Poor old DonDiego joins those who oppose imposition of tariffs on imported goods.  

He does not opine that this single act is "socialism", . . . but better minds than his have concluded it is an act of 'government-interference with business' on the road to socialism*:

_____quote_____

All varieties of interference with the market phenomena not only fail to achieve the ends aimed at by their authors and supporters, but bring about a state of affairs which-from the point of view of their authors' and advocates' valuations—is less desirable than the previous state of affairs which they were designed to alter. If one wants to correct their manifest unsuitableness and preposterousness by supplementing the first acts of intervention with more and more of such acts, one must go farther and farther until the market economy has been entirely destroyed and socialism has been substituted for it.

__endquote_____

. . . Ludwig von Mises

* DonDiego recommends the book The Road to Serfdom  authored by F. A. Hayek for more similar insights.

Socialism?  I do not think that means what you think it means.  As trade policy, the Chinese have been practicing Mercintilism. They have been doing it through non-tarrif trade barriers, a directed economy and currency manipulation.  Presidents Obama and Bush didn't see the massisive trade imbalance created under their watches as a problem. 

Unlike his predecessors President Trump correctly identified these unfair trade practices as detrimental to both the short and long term health of the American economy.  Right wing  'free traders' seem to claim that as long as American Consumer benefits through lower prices allowing global competitors to manipulate trading markets is Ok.  Those on the left, claim to support the American Worker, but sat by idely twiddling thier fingers as our industrial base exited.  On imposing Tarrifs to force the Chinese to a fairer trading situation, left wingers just seem to hate Donald Trump so much they hope anything he does fails.  Maybe they think if we're just nice to China the Chinese Government will change.

Warren Buffet just warned that a trade war with China would be bad for the entire worldI and he's right.  This is brinksmanship.  But if you think it isn't necessary brinksmanship and we should just ignore the massive annual trade deficits because it beneifts consumers, I suggest you read Buffet's classic 2003 piece in Fortune Magazine.

https://fortune.com/2016/04/29/warren-buffett-foreign-trade/

In it he describes trading between two neighboring island nations 'Thriftville and Squandervill'.  I'll let the reader decide which country might be China and which might be the US.  He also suggests a novel solution of trading credits to assure our global trade imbalance corrects over time.

The real question is "Do you support the President's tough line on trading with China and if not, why not?" What it shouldn't be is some chicken shit oversimplification of the situation...Like "Republicans are Socialists".  But that may be too much to ask

I agree, Charles.   But  the "chicken-shit" argument you mention is exactly what Republicans (including Trump's primary economic advisor) used when Obama put his "socialist" tariffs on subsidized Chinese tires and solar panels that were flooding our markets.   And its the same chicken-shit argument they use to demagogue every policy position from the current round of democrats that are running in 2020.

What would you call such people?

When I say (correctly) that Trump's interventions in the economy are socialist in nature it is not an insult...or meant to be a gotcha.  Its just a fact.   People who have convinced themselves that socialist policy is by definition a bad idea should consider their own support for these policies and rethink their reflexive rhetoric which they obviously have not thought through very well.     They would not have such a paradoxical view if they did.

Like I started off...I do not think Socialism means what you think it means.  Trump or Obama's imposition of Tarriffs are not 'Socialist Policy'.  Socialist Policy would be one that pushes ownership and control of the means of production toward Government.  Socialism, Commnunism, Fascism, Capitalism....all the isms allow for trading nations to resist unfair trade practices by a competitor nation. 

I don't think you understand that so it's easier for you to just call Republicans hypocrites.  Of course a lot of them can't distinguish between economic systems and trade practices either so if they called Obama a Socailist because he was resisting unfair trade practices then they're just as wrong as you are.  That's not to say that Obama wasn't in fact a Socialist, it's just this isn't an example of it.

For 30 years, the world has bent over backwards to help bring China into the first world. Indeed, they are still given the benefits of a developing economy in the World Trade Organization despite being the 2nd biggest economy in the world.  Meanwhile the middle of the country has had its industrial base and unionized jobs pushed out of the country, by "free trade"policies to be replaced by Walmart Greeting type jobs.  Trump is merely replacing these previously misguided(and yes mostly republican, I hate to say)policies.  Don't know if it will work, but loss of manufacturing jobs in the United States and depencency on other, sometimes hostile countries, for goods, is not a good long term idea.

Every posting from self annoited guru PJ only describes a "problem" or "misguided" effort by President Trump as he attempts to right the many wrongs that previous administrations have done. Never once have I heard/read any solution to these issues from PJ - only bashing and ridicule. Meanwhile, previous efforts to bash President Trump by PJ have failed as the American economy flourishes, unemployment dwindles, the stock market is roaring, and American pride in their nation is returning. 99% of the idiotic noise being spewed by the media is false as they twist the facts and cherry pick phrases to proclain that the sky is falling each and every day. DemocRATS have shown that they are nothing but liars and traitors to our nation as they bitch and moan while doing NOTHING that they were elected to do. Only an idiot could/would support the DemocRATS and their lying obstruction. Voting these career thieves out next election will go a long way to righting the wrongs these worthless traitors have done.