Tag: White Bull

America First Investment Policy

I’ve agreed to contribute a pair of posts per week to the White Bull’s business and policy substack; my first post there addresses the God-Emperor 2.0’s recent executive order that transforms America’s previously open door approach to foreign investment.

Investment by United States allies and partners can create hundreds of thousands of jobs and significant wealth for the United States. Our Nation is committed to maintaining the strong, open investment environment that benefits our economy and our people, while enhancing our ability to protect the United States from new and evolving threats that can accompany foreign investment.

Investment at all costs is not always in the national interest, however.

This is a major change from the “all free trade is good for the US economy” mantra that has ruled US trade policy since the 1980s. While this is not the place for a lesson in Economics 101 or a departure into economic history, the fact that M (imports) are subtracted from the sum total that is the result of the GDP equation is sufficient to point out that when (X-M) is negative, which is to say that there is a trade deficit, the economy is contracting, all else being equal.

In the same way, while “investment in America” sounds as if it should always be positive, if it is described as “selling American assets and property to foreign countries,” it obviously isn’t in any and all circumstances. There are times where the sale of American products are advantageous to the American economy, such as the sale of American steel to foreign automotive manufacturers, and times when they are not.

Read the whole thing there. As with Sigma Game, I’m aware that business and government policy tend to be of limited interest to the general readership here, so it will be good to have a specific place to address those topics regularly for the benefit of those who actually like reading about such things. But never fear, if I happen to post something there that I think is – or even that I think should be – important for everyone here to know, I’ll post it here as well.

But as with tariffs, a judicious foreign investment policy that takes each case on its merits is a vast improvement than simply selling off all of the family jewels to the first foreigner who happens to want them.

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It Actually Is What it Is

White Bull has launched their long-awaited substack focused on business and the intersection of policy on business with a very solid piece on tariffs. This is particularly important, because both the media and most official government positions on tariffs are still stuck in 18th century critiques of European mercantilism and therefore take nothing that has happened and nothing that we’ve learned in the last 250 years into account.

Before the 2024 election Trump said, “Tariffs are the greatest thing ever invented.” While it is typical Trumpian hyperbole, it is not wrong. Following almost 4 decades of globalists being hell bent on eliminating trade barriers, US trade policy supporting exporting US manufacturing to Canada/Mexico with NAFTA, or China with MFN and then accession to WTO (thank you Bill Clinton + Laura Tyson), the US has essentially been subsidizing other nations at its own expense. Tariffs are one of many tools that the US needs to start using to recalibrate its place vis a vis the global marketplace.

The globalists in Congress keep saying that Trump doesn’t know what he is talking about when he discusses who actually pays the tariffs.They say consumers pay the tariffs. Well, they are (partly) right and everyone knows this. What they don’t talk about is that unless the producers who have tariffs levied on them reduce their wholesale prices, the cost to the American consumer will increase by retail price + the tariff %. American consumers are smart enough to shift their buying preferences towards better value, alternative products or wait on purchases until alternatives emerge. American manufacturers will be motivated to bring manufacturing back to the US, since profitability is possible again. Everybody in America wins! At Davos a few weeks ago, even the pragmatic Jaime Dimon came out in favor of tariffs, saying, “I would put into perspective: If it’s a little inflationary, but it’s good for national security, so be it. I mean, get over it.”

Tariffs were a very effective tool for the US during the 1800s, and between 1861-1933 the US had one of the highest average tariff rates on manufactured imports in the world. Is it surprising that after 1933/New Deal, tariffs started to disappear while being replaced by income taxes, sales taxes and a myriad of social programs started to emerge? Tariffs can be raised, lowered or eliminated entirely as needed. But taxes and entitlements rarely disappear creating virtually unlimited budgets for politicians to tap into or steal. And while there is always the danger of a trade war, it looks like many ‘deals’ will get cut to decrease US trade deficits with targeted countries before needing to actually levy the tariffs.

IT IS WHAT IT IS promises to be as significant in the business and technology space as FANDOM PULSE has already proved to be in the entertainment and culture space. If you’re running a side hustle or you’re a full-time entrepreneur with your own small business, you will definitely want to be a part of the conversation there. It’s something I’ve wanted White Bull to do for a long time, simply so I don’t have to, because it is one thing that we just haven’t had in the greater community.

We’ve just never really had a place where those of us who are active in business can discuss what is going on around the world in the context of our business operations, so I think this will be an important step going forward.

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