Trump: I 'very much agree' with Sanders on trade

What you're suggesting is absolutely insane. Import tariffs on low wage countries? Do you want to spend $200 for a pair of jeans, or $2000 for an iPhone? You have to be out of your mind.

This is why we would only selectively choose which countries to start trade wars with instead of blanket import tariffs on the whole world. Namely China, Mexico, and South Korea are the chief problems and we can live without Malaysia completely. China already has import tariffs on many of our products so we are just leveling the playing field.

These aren't good jobs.

The entry level manufacturing jobs would be good for teenagers trying to get their foot in the door and get training to move on to more complex higher wage manufacturing jobs. Many of the manufacturing jobs we lost to low wage countries as a result of free trade were higher paying- auto-manufacturers and Boeing moving their plant to China as an example.

Permanent Normal Trade Relations with China was a one-sided deal in favor of outsourcing manufacturing to China. It did nothing to stop import tariffs on American goods coming into China or stop China from illegally subsidizing certain industries, stealing our tech every time a US company wants to set up a plant in their country.

We should only be making deals with one country at a time. You don't give the same deal to Malaysia- a low wage, low environmental regulation country that still allows slave labor- as you would give to Japan- a high wage, high environmental regulation country with strong worker protections.

Worker protections and currency appreciation (to give workers a raise) have to be implemented in all the low wage, low regulation countries that we make agreements with. We should never allow our workers to compete with countries that have slave labor.

We don't need a manufacturing base. 

The US's main problem regarding the economy is the fact that we as a nation consume more than we produce which means that we send hundreds of billions of dollars overseas more than we take in from exports every quarter and so we are constantly getting poorer. 70% of the US economy is now driven by consumer spending. Overregulation by the government and the Fed's monetary expansion, manipulation of interest rates, and distortion of the market has transformed the country from a manufacturing based economy to a consumption and financial services based economy. Only by producing more than you consume and having a surplus can an individual/company/nation become wealthy. The money is not the wealth, the goods/service/assets it purchases are the real wealth.

When a nation has a current account deficit (trade deficit), the only way for its population to have a "real" net savings rate [meaning adjusted for inflation] is for the government to have a budget deficit (because more money is being sent abroad for foreign goods than the amount of money coming in through exports). I would remind you that before the US became the largest debtor nation in world history, it used to be the world's largest creditor. The suspension of the gold standard in 1971 to a fiat system of money born exclusively of debt caused rapid credit growth which shifted the economy from production to encourage debt-financed consumption. A nation cannot consume more than it produces forever. Look at the European countries that have strong economic performance also have current account surpluses- Norway, Sweden, Germany, Switzerland, etc. China is another export power house economy that has accumulated massive foreign reserves this way.

A nation cannot run trade deficits and continue to borrow money forever. Interest payments on the national debt (currently $250billion) are only low now because of 0% rates and the Fed's monetization of the debt. The interest rates will go higher eventually and that will be very burdensome on the federal budget. Medicare/Medicaid will not have sufficient funds to meet their obligations by 2025 as the population ages and starts collecting and more people become poorer and therefore gain access to Medicaid. By 2025 interest payments on the national debt and entitlements will consume the entire budget. The Federal Reserve is already leveraged nearly 80 to 1, technically it's insolvent already and people are calling for the Fed to leverage up even further with another QE program which will eventually trigger much higher inflation rates and even more so as those dollars being held abroad come back home in exchange for American goods/assets.

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