Have those arrogant globalist elites trying to rule the world been stopped at last?

Have the nationalists, slowly awaking from their passivity and apathy to vote for Brexit and Donald Trump, to put on yellow vests and shout angrily in the streets of their Western cities, stopped them?

We quote Michael Barone writing at Investor’s Business Daily on 2/1/2019:

Turnout at Davos was lousy this year. President Trump, preoccupied by the government shutdown, was a no-show at last week’s World Economic Forum there. So were British Prime Minister Theresa May (Brexit) and French President Emanuel Macron (“gilets jaunes”). Chinese President Xi Jinping, Davos’ 2018 star, and Russian President Vladimir Putin weren’t there either. Neither were some of the usual financial and media big names.

From all of this, you might get the impression that the world’s political, financial and media elites have lost much of their prestige these days, which, of course, they have.

It’s an enormous contrast with elites’ sunny confidence, over much of the quarter century after the fall of the Soviet Union, that they could remake the world … 

Consider Mexico. The NAFTA trade agreement was proposed by the Reagan administration, negotiated by the Bush administration and ratified by the Clinton administration, with plenty of support from both parties, especially Texans (Lloyd Bentsen, the Bushes) close to the border. They hoped to make Mexico more like the United States, and to regularize Mexican immigration.

There has been some convergence, with life in much of Mexico resembling Texas, but also with large parts of California resembling Mexico. Illegal immigration surged up until the 2007 economic crisis.

Even more ambitious was the bipartisan elites’ project of bringing China into the world trading system. The hope was that an increasingly prosperous Chinese populace would demand more freedom and democracy. That hasn’t happened; instead, Xi Jinping has regressed toward one-man rule.

Meanwhile, serious academic studies have substantiated non-elite charges that Chinese imports have cost America hundreds of thousands of manufacturing jobs. In return, American consumers have been able to buy clothes, toys and gadgets at increasingly low prices. But for many, it is at the cost of the dignity and sense of self-worth achieved by earning a paycheck.

The chief project of European elites, the “ever-closer” European Union, has arguably worked out worse. The Euro currency that was supposed to tie Europe together has instead (as former British Prime Minister Margaret Thatcher predicted) widened the rift between the Mediterranean countries and an increasingly dominant Germany. Britain voted for Brexit — leaving the EU — in 2016, and elites, despite astonishing contempt for voters, have so far failed to reverse that verdict. …

In each case, these elites have underestimated the force and persistence of national cultures …

Perhaps the success of American military leaders in transforming post-World War II Germany and Japan turned out to be misleading. Those two countries drew on ethical and parliamentary traditions rooted in those societies and not wholly destroyed by short periods of dominance by Nazi thugs and murderous militarists. Mexico and China have different traditions, and there is no vital tradition of European unity.

Elites are impatient with people they regard as their inferiors. If you question Eurocrats’ undemocratic drive for an “ever-closer Union”, you are told that without the EU, France and Germany would once again go to war — obvious nonsense. If you advise more respect for nationalist traditions, you are told that all nationalists are Nazis — obvious nonsense again.

If you say that competition from low-wage workers in Mexico and China might cause substantial job loss in the United States, you are told what every college grad learns in Economics 101 (but what sounds counterintuitive to non-college grads), that free trade benefits both importers and exporters. You can argue that Mexican immigration and Chinese job competition peaked before 2007, but they still obviously rankle many voters.

So the political, financial and media elites have taken beatings at the ballot box … Their failures to make course corrections and their lack of respect for decent nationalism have been costly. Something to talk about if they slink back to Davos next year.

“Slink back” is good!

But to answer our opening questions: No, there is still many a battle ahead before Merkel, Macron and May – probably never accepting that they were wrong – are driven from power. The rickety EU is not yet about to be pushed over to explode in a cloud of dust. And in the US, because badly educated 18-24 year olds who have no stake in the economy are allowed to vote, there is a real danger of socialist environmentalist race-obsessed feminist globalists coming to power in the next decade.

This post is intended to be read along with the post immediately below, The case for free trade.

“Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!” – President Trump

According to Forbes:

While the exact amount of tariffs has not been confirmed, the President has indicated that he favors tariffs of 25% on steel imports and 10% on imported aluminum. Similarly, the specifically affected countries were not called out, but it’s likely the President might exempt some of our closest trading partners.

The imposition of tariffs would, according to the President, level the playing field between the United States and countries like China.

Now we quote Seton Motley, president of Less Government, a DC-based organization “dedicated to reducing the power of government and protecting the First Amendment from governmental assault”. (And so also, it would seem, a libertarian.) He is a leading authority on technology and telecom policy, and a policy adviser to The Heartland Institute.

He makes a case for President Trump’s tariffs not because he is for protection in principle – he says he is not – but because other countries practice it to the detriment of the United States.

He writes at Townhall:

President Donald Trump wants to fix the nightmare mess that is DC’s crony globalist fake “free trade” – and conservatives all across the nation are up in arms.

A lot of really great conservative thinkers are very, very angry with Trump’s tariff threat.

(Please note: They at this point remain threats – not tariffs. Read“The Art of the Deal. Very often you threaten, but never enact – the threat is enough to better the deal.)

And as much as I like and respect so very many of these conservative thinkers – they are all very, very wrong.

A lot of what you get from them is a lot of talking points … “Tariffs are taxes!” “Protectionism is bad!” “Free trade is good!”

The very obvious secret is I agree with all of these points.

The other very obvious secret is none of them apply to what DC pretends is “free trade”. 

Globalist big business robber barons have spent the last half-century-plus lobbying DC for more and more one-sided, America-last trade deals in which America removes all of our government impediments – tariffs, domestic subsidies, import caps, etc. – to our world’s-largest now-$18-trillion-per-year economy. This thereby allows the unfettered flow of goods and services from all round the world.

We have done absolutely nothing about the very many government impediments – tariffs, domestic subsidies, import caps, etc. – that just about every other nation imposes upon us, severely limiting the flow of our goods and services into their relatively paltry markets.

This has been one long, ongoing trade war declared and engaged in by every nation on the planet – except the U.S., and one incessantly long run of titanically stupid trade policy. …

These terrible deals have been a key component in our nation’s loss of millions and millions of jobs. And the loss of who should be key allies in the fight for less government domestically.

Rather than fight for less government domestically – thereby making it more tenable to remain in the States – the globalist big business robber barons flipped the script.

They got DC to emplace ever more America-last trade deals – and then moved their businesses to the countries from which they had just negotiated unfettered access to our economy, costing us millions of gigs and escaping all of our stupid domestic government – and all of the government impediments the other countries emplace upon U.S. exports.

Now their new host nations’ continued protectionism benefits them. Heck, their new host nations often subsidize their companies.

Meanwhile, America’s small businesses – which can’t move overseas – have to stay here and get pummeled by ever-expanding domestic government and the relocated-globalist-big-business-robber-baron subsidized-and-protectionism-protected goods and services – being brought in unfettered to compete against them.

These small domestic businesses very often cannot endure the relentless pummelings – and succumb and go under. Thereby costing us millions of additional gigs. …

All of this has for decades been DC’s definition of “free trade”.  It has absolutely nothing to do with actual free trade, free markets, or freedom of any sort.

And this is what conservatives all across the country are in the midst of defending. …

Ok: You don’t like Trump’s proposed tariffs – I get it.

But at least Trump knows there is a HUGE problem that needs to be addressed (and has known it for decades).

So until someone amongst the many contesting conservatives acknowledges there actually is a HUGE problem – I’ll be siding with the guy who knows there is, and is looking to address it.

We invite the opinions of our readers on whether President Trump is justified in imposing – or at least threatening to impose – tariffs on steel and aluminum.

President Trump is speaking of imposing tariffs on steel and aluminum to boost domestic production.

To explain the case for free trade, we quote from a speech delivered at the (libertarian) Mises Institute a few days ago by Thomas J. DiLorenzo.

It is not an exaggeration to say that trade is the keystone of modern civilization. For as Murray Rothbard wrote:

The market economy is one vast latticework throughout the world, in which each individual, each region, each country, produces what he or it is best at, most relatively efficient in, and exchanges that product for the goods and services of others. Without the division of labor and the trade based upon that division, the entire world would starve. Coerced restraints on trade – such as protectionism – cripple, hobble, and destroy trade, the source of life and prosperity.

Human beings cannot truly be free unless there is a high degree of economic freedom – the freedom to collaborate and coordinate plans with other people from literally all around the world. That is the point of Leonard Read’s famous article, “I Pencil,” which describes how to produce an item as mundane as an ordinary pencil requires the cooperation and collaboration of thousands of people from all around the world, all of whom possess very specific knowledge … that allows them to assist in the production and marketing of pencils. The same is true, of course, for virtually everything else that is produced.

Without economic freedom – the freedom to earn a living for oneself and one’s family – people are destined to become mere wards of the state. Thus, every attempt by the state to interfere with trade is an attempt to deny us our freedom, to impoverish us, and to turn us into modern-day serfs.

[Ludwig von] Mises believed that trade or exchange is “the fundamental social relation” which “weaves the bond which unites men into society”. Man “serves in order to be served” in any trade relationship in the free market. …

Trade involves the exchange of property titles. Restrictions on free trade are therefore an attack on private property itself and not “merely” a matter of “trade policy”. This is why such great classical liberals as Frederic Bastiat spent many years of their lives defending free trade. Bastiat … understood that once one acquiesced in protectionism, then no one’s property will be safe from myriad other governmental acts of theft. To Bastiat, protectionism and communism were essentially the same philosophy.

It has long been recognized by classical liberals that free trade was the most important means of diminishing the likelihood of war. …

[I]t is not democracy that is a safeguard against war but, as the British (classical) Liberals were to recognize, it is free trade. To Richard Cobden and John Bright, the leaders of the British Manchester School, free trade – both domestically and internationally – was a necessary prerequisite for the preservation of peace. …

As Frederic Bastiat often said, if goods can’t cross borders, armies will. This is a quintessentially American philosophy in that it was the position assumed by George Washington, Thomas Jefferson, and Thomas Paine, among others. A foreign policy based on commerce,” wrote Paine in Common Sense, would secure for America “the peace and friendship” of the Continent and allow her to “shake hands with the world – and trade in any market.” Paine – the philosopher of the American Revolution – believed that free trade would “temper the human mind”, and help people to “know and understand each other”,  and have a “civilizing effect” on everyone involved in it. Trade was seen as “a pacific system, operating to unite mankind be rendering nations, as well as individuals, useful to each other. . . . “War can never be in the interest of a trading nation.”

George Washington obviously agreed. “Harmony, liberal intercourse with all Nations, are recommended by policy, humanity and interest,” he stated in his September 19, 1796 Farewell Address. Our commercial policy “should hold an equal and impartial hand; neither seeking nor granting exclusive favours or preferences; consulting the natural course of things; deversifying by gentle means the streams of Commerce, but forcing nothing . . .”

The period of world history from the middle of the fifteenth to the middle of the eighteenth centuries was an era of growth in world trade and invention and of institutions suited to trade. Technological innovations in shipping, such as the three-masted sail, brought the merchants of Europe to the far reaches of America and Asia. This vast expansion of trade greatly facilitated the worldwide division of labor, greater specialization, and the benefits of comparative advantage.

But whenever human freedom advances, as it did with the growth of trade, state power is threatened. So states did all they could then, as now, to restrict trade. It is the system of trade restrictions and other governmental interferences with the free market, known as mercantilism, that Adam Smith railed against in The Wealth of Nations. … [He] was defending trade on moral as well as economic grounds by enunciating his doctrine of how free trade was part of the system of “natural justice”.  One of the ways he did this was to defend smugglers and the act of smuggling as a means of evading mercantilist restrictions on trade. The smuggler, explained Smith, was engaged in “productive labor” that served his fellow man (i.e., consumers) …

For the same reason, black markets are defensible.

Despite powerful arguments in favor of free trade offered by [Dr. Francois] Quesnay, [Adam] Smith, David Ricardo, and others, England (and other countries of Europe) suffered from protectionist trade policies for the first half of the nineteenth century. But this situation was turned around due to the heroic and brilliant efforts of what came to be known as the “Manchester School,” led by two British businessmen, John Bright and Richard Cobden. Thanks to Bright and Cobden Great Britain achieved complete free trade by 1850.

The British public was plundered by the mercantilist “corn laws” which placed strict import quotas on the importation of food. The laws benefited political supporters of the government who were engaged in farming at the expense of much higher food prices, which was especially harmful to the poor. Bright and Cobden formed the Anti-Corn Law League in 1839 and turned it into a well-oiled political machine with mass support, distributing literally millions of leaflets, holding conferences and gatherings all around the country, delivering hundreds of speeches, and publishing their own newspaper, The League. …

From his home in Mugron, France, Frederic Bastiat single handedly created a free-trade movement in his own country that eventually spread throughout Europe. Bastiat was a gentleman farmer who had inherited the family estate. He was a voracious reader, and spent many years educating himself in classical liberalism and in just about any other field that he could attain information about. After some twenty years of intense intellectual preparation, articles and books began to pour out of Bastiat (in the 1840s). His book, Economic Sophisms, is to this day arguably the best defense of free trade ever published. His second book, Economic Harmonies, quickly followed, while Bastiat published magazine and newspapers all over France. His work was so popular and influential that it was immediately translated into English, Spanish, Italian, and German.

Due to Bastiat’s enormous influence, free-trade associations, modeled after one he had created in France and similar to the one created by his friend, Richard Cobden, in England, began to sprout in Belgium, Italy, Sweden, Prussia, and Germany.

To Bastiat, collectivism in all its forms was immoral as well as economically destructive.

Collectivism constituted “legal plunder,” and to argue against the (natural) right to private property would be similar to arguing that theft and slavery were “moral”. The protection of private property is the only legitimate function of government, Bastiat wrote, which is why trade restrictions – and all other mercantilist schemes – should be condemned. Free trade “is a question of right, of justice, of public order, of property. Because privilege, under whatever form it is manifested, implies the denial or the scorn of property rights.” And “the right to property, once weakened in one form, would soon be attacked in a thousand different forms.”

There is no clearer example of how trade restrictions are the enemy of freedom than the American Revolution. In the seventeenth century all European states practiced the policy of mercantilism. England imposed a series of Trade and Navigation Acts on its colonies in America and elsewhere, which embodied three principles: 1) All trade between England and her colonies must be conducted by English (or English-built) vessels owned and manned by English subjects; 2) All European imports into the colonies must “first be laid on the shores of England” before being sent to the colonies so that extra tariffs could be placed on them; and 3) Certain products from the colonies must be exported to England and England only.

In addition, the colonists were prohibited from trading with Asia because of the East India Company’s state-chartered monopoly. There were import duties placed on all colonial imports into England.

After the Seven Years War (known in America as the French-Indian War), England’s massive land holdings (Canada, India, North America to the Mississippi, most of the West Indies) became very expensive to administer and police. Consequently, the Trade and Navigation Acts were made even more oppressive, which imposed severe hardships on the American colonists and helped lead to revolution.

After the American Revolution trade restrictions nearly caused the New England states — which suffered disproportionately from the restrictions — to secede from the Union. In 1807 Thomas Jefferson was president and England was once again at war with France. England declared that it would “secure her seamen wherever found”,  which included U.S. ships. After a British warship captured the USS Chesapeake off Hampton Roads, Virginia, Jefferson imposed a trade embargo that made all international commerce illegal. After Jefferson left office his successor, James Madison, imposed an “Enforcement Act” which allowed war-on-drugs style seizure of goods suspected to be destined for export.

This radicalized the New England secessionists, who had been plotting to secede ever since Jefferson was elected, issued a public declaration reminding the nation that “the U.S. Constitution was a Treaty of Alliance and Confederation” and that the central government was no more than an association of the states. Consequently, “whenever its [i.e., the Constitution’s] provisions were violated, or its original principles departed from by a majority of the states or their people, it is no longer an effective instrument, but that any state is at liberty by the spirit of that contract to withdraw itself from the union.”

The Massachusetts legislature formally condemned the embargo, demanded its repeal by Congress, and declared that it was “not legally binding”. In other words, the Massachusetts legislature “nullified” the law. Madison was forced to end the embargo in March of 1809. …

John Taylor, a noted Anti-Federalist, was a lifelong critic of mercantilism and laid out his criticisms in his 1822 book, Tyranny Unmasked. Like Bastiat, Taylor saw protectionism as an assault on private property that was diametrically opposed to the freedom the American revolutionaries had fought and died for. The tyranny that Taylor sought to “unmask” was the collection of fables and lies that had been devised by mercantilists to promote their system of plunder. If one looks at England’s mercantilist policies, Taylor wrote, “No equal mode of enriching the party of government, and impoverishing the party of people, has ever been discovered.” …

Many of Taylor’s arguments were adopted and expanded upon by the great South Carolinian statesman John C. Calhoun during the struggle over the 1828 “Tariff of Abomination”,  which a South Carolina political convention voted to nullify. The confrontation between South Carolina, which was very heavily import dependent, as was most of the South, and the federal government over the Tariff of Abominations almost led to the state’s secession some thirty years prior to the War for Southern Independence. The federal government backed down and reduced the tariff rate in 1833.

The Northern manufacturers who wanted to impose British-style mercantilism on the U.S. did not give up, however; they formed the American Whig party, which advocated three mercantilist schemes: protectionism, corporate welfare for themselves, and a central bank to pay for it all. From 1832 until 1861 the Whigs, led by Henry Clay and, later, by Abraham Lincoln, fought mightily in the political arena to bring seventeenth-century mercantilism to America.

The Whig party died in 1852, but the Whigs simply began calling themselves Republicans.

We have often praised the Republican Party for its opposition to slavery, but we do not praise it for this:

The tariff was the centerpiece of the Republican party platform of 1860, as it had been when the same collection of Northern economic interests called itself “Whigs” for the previous thirty years.

By 1857 the level of tariffs had been reduced to the lowest level since 1815, according to Frank Taussig in his classic Tariff History of the United States. But when the Republicans controlled the White House and the Southern Democrats left the Congress the Republicans did what, as former Whigs, they had been itching to do for decades: go on a protectionist frenzy. In his First Inaugural Address Lincoln stated that he had no intention to disturb slavery in the Southern states and, even if he did, there would be no constitutional basis for doing so. But when it came to the tariff, he promised a military invasion if tariff revenues were not collected. …

By 1862 the average tariff rate had crept up to 47.06 percent, the highest level ever, even higher than the 1828 Tariff of Abominations. These high rates lasted for decades after the war. …

[B]y 1860 England itself had moved to complete free trade; France sharply reduced her tariff rates in that very year; and Bastiat’s free-trade movement was spreading throughout Europe. Only the Northern United States was clinging steadfastly to seventeenth-century mercantilism.

After the war the Northern manufacturing interests who financed and controlled the Republican party (i.e., the old Whigs) were firmly in control and they “ushered in a long period of high tariffs. With the tariff of 1897, protection reached an average level of 57 percent.” This political plunder continued for about fifty years after the war, at which time international competition forced tariff rates down moderately. By 1913 the average tariff rate in the U.S. had declined to 29 percent.

But the same clique of Northern manufacturers was begging for “protection” and persisted until they got it when Herbert Hoover signed the Smoot-Hawley tariff of 1929, which increased the average tariff rate on over 800 items back up to 59.1 percent. The Smoot-Hawley tariff spawned an international trade war that resulted in about a 50 percent reduction in total exports from the United States between 1929 and 1932. Poverty and misery was the inevitable result. Even worse, the government responded to these problems of its own creation with a massive increase in government intervention, which only produced even more poverty and misery and deprived Americans of more and more of their freedoms.

The case for President Trump’s tariffs follows immediately in the next post. …