onsdag 14 oktober 2020

Mutually self-punishing trade policy

The government of country X subsidises widget production by giving its taxpayers' money to Widgeprod Inc. Its taxpayers are the losers.

Widgeprod then sells its subsidised widgets in country Y, which makes them good value to those who can buy them. Widgeproduits SA is threatened with the loss of most of its business and persuades the its own government to put a tariff on everything from country X.

This keeps Widgeproduits AS in business but everyone else in country Y paying through the nose for all imports from country Y.

The alternatives would have been for Widgproduits AS to side-step the competition by making something else (these situations rarely develop overnight) or cease production. The money customers save on the cheaper Widgeprod goods is spent elsewhere into the economy of country Y, and the foreign exchange that flows into country X is ultimately spent in country Y.

The subsidy is a net economic loss to country X. The punitive tariffs are a loss to country Y. Why does this idea of mutual self-harm persist?

fredag 9 oktober 2020

What is Land Value Tax? Part 3

Part 1s and 2 seem to have disappeared from the website of the Land Value Taxation Campaign but you can see them on YouTube. The website has been re-designed and much improved, but there are still a few issues to be resolved.

onsdag 12 augusti 2020

Japanese cheese blues

 The idiocy of politicians’ interference with international trade knows no bounds. The Japanese negotiators want to maintain a tariff on cheese imports from the UK. There is no tradition of eating dairy produce in Japan and no significant cheese industry, so what are the negotiators trying to protect? The main victims will be expat Brits who fancy a taste of the home country, and a few local people with odd tastes. But the British negotiators should make it clear they they are acting like idiots but if they insist, they can get on with their stupidity. This spat also demonstrates the pointlessness of so-called free trade agreements. Countries should just remove their own barriers to imports. If the removal is not reciprocated, it’s the other countries’ funeral.

måndag 3 augusti 2020

Hotels to hostels - is the law being broken?

Is the law being broken when hotels are used as hostels for illegal migrants? Planning permission is required. Has it been given?

What is Land Value Tax? Part 4