Corporate welfare in another guise.

The Coyote describes it: More Corporate Welfare, in the Form of a Currency War.

The idea is that those Chinese are cheating, you see, and that means they sell things too cheap here in the U.S. That makes it harder for some manufacturers to compete on a price basis and that’s just gotta’ stop.

So, the solution is to impose tariffs and such things to raise the price of Chinese goods. What that means is that a lot of stuff you buy will get more expensive. That is, in essence a regressive tax as it puts a heavier burden on those on the lower end of the economic spectrum.

As the Coyote also describes, it is a form of corporate welfare. It taxes the poor to help those corporations who can’t compete.

“Look at the sentence in bold. Another way to write this would be “we want a law to help a few visible and influential manufacturers who most compete with China, but hurts consumers (ie every single American) and every business that uses imported raw materials.”

When the Chinese make it easier for us to buy their stuff, they are subsidizing the price. It seems we should be appreciative when someone wants to pick up a part of the tab rather than angry.

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