Hughesair (Inflection Point)

Retired physician and air taxi operator, science writer and part time assistant professor, these editorials cover a wide range of topics. Mostly non political, mostly true, I write more from experience than from research and more from science than convention. Subjects cover medicine, Alaska aviation, economics, technology and an occasional book review. The Floatplane book is out there. I am currently working on Hippocrates a History of Medicine and Globalism. Enjoy!

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Location: Homer, Alaska, United States

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Wednesday, September 18, 2019

Contrary to the Noise

Wall Street and multinationals complain about Tariffs, because Tariffs reverse Globalism’s drain on liquidity from the middle class, the tax payer and the poor -- to the benefit of foreign interests, investment banks and big business. Tariffs effectively return some of that lost wealth to the people.

Fed chairman Powell reports a slowing of the supply side of the market and an economy driven by household spending. Reassuringly, the Consumer Price Index appears unaffected by the tariffs, also contrary to the noise.

Asymmetric trade had benefited wall street and multinationals by outsourcing manufacturing and jobs, benefiting from cheap labor, at a devastating cost to our middle-class and unemployed poor -- many living in their cars. We had lost a 30-year trade war with China and roughly 15 trillion in overall trade deficit – including Japan and Germany.

Tariffs now provide a partial recovery from that loss, but it will require many years of balanced trade to recover completely from that 30-year loss -- of liquidity drain from the demand side of the consumer market -- from the people.

The Chairman reports 2.5% GDP growth for the first half of the year, 2019; he did not seem to expect even 2% annual for the future. It would require double digit GDP growth to make up for the past 30 years of stagnation during which Wall Street and international interests superseded our own economic health.

Tariffs are good, and are poring added liquidity into the hands of consumers and small business -- a redistribution of concentrated wealth. That added liquidity turns over multiple times within the market, the multiple in the GDP. These are the facts, contrary to the noise.

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