Monday, May 2, 2022

Import tax on China

The government is finally showing some concern about our dependence on China but they are going about it in the wrong way. Congress passed a $350 billion dollar corporate welfare bill designed to give money to private companies to help them compete with imports from China. This will add to the inflation while handing out checks to big companies. A better way would be to place import taxes on goods from China causing the cost of these items to become non competitive with US industries. Consumer prices would rise but that is the price to pay for having goods made in America. Big companies should be aware that if the government is going to give them money they will demand some control over how it is spent. For those who favor free trade it is not free when the Chinese government subsidizes their industries so they can sell products at a price below the cost of production.

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