I used to be against all tariffs, but I changed my mind a few years ago. The philosophical argument is straightforward.
The initiation of force is evil. Therefore, it is evil for government to initiate force. Tariffs are a form of force. Therefore, it is evil for government to initiate tariffs. But …
The proper function of government is to be the agency of objective retaliatory force. Retaliatory tariffs are a moral and reasonable tool of government. As retaliatory force against domestic criminals is the rational means of eradicating the initiation of force by criminals, retaliatory tariffs are a rational means of eradicating tariffs by other governments.
Indeed, tariffs are a relatively mild form of government action, much milder than trade bans and—of course—war.
It is moral to ban trade with Soviet and present Russia, Communist Cuba, and Communist China, for instance. These countries are threats to American security and freedom. A trade ban is equivalent to an infinite tariff.
A tariff on Chinese goods is too mild an action against China, but it is much better than nothing. Even better would be an infinite tariff.
Do we need cheap Chinese goods? Why can’t we make our own cheap goods? The fundamental reason is that there is no cheap labor in America. The fundamental reason that there is no cheap labor in America is that government has made rules against free trade between employers and employees—especially in the form of minimum-wage legislation.
No matter how wealthy a free nation is, there will always be cheap labor, because there will always be individuals just beginning their working career. As has been stated many times by capitalist economists, minimum-wage laws saw off the bottom rungs of the career ladder, making it difficult for the unskilled to begin their climb to success.
For millions of unskilled and/or unmotivated Americans, the replacement for a low-paying job is handouts from the government.
Ironically and sadly, there is one important way in which Communist China is more free than the U.S.: The Chinese minimum wage ranges roughly from $2.60 to 3.70 per hour, whereas the American minimum wage ranges from $7.25 per hour to more than $16 per hour.
Trade with China is essentially a workaround for industry-killing minimum-wage laws.
America could revive American industry and take a great step toward eliminating the Chinese military threat by the combination of three policies: abolish minimum-wage laws and other anti-business regulation, dismantle the welfare state, and impose an infinite tariff on China.
The current Overton Window seems to preclude such a combination of policies, but this combination is something for advocates for freedom to work toward for the long term.
6 thoughts on “In Support of Infinite Tariffs”
Your point about the moral distinction between initiating and retaliating with force is thought-provoking. It raises a larger question: how do we ensure retaliatory tariffs remain truly retaliatory, and not just political cover for protectionism?
You ask an important question. To begin an answer, I think it is important to note that your question is not larger but rather derivative, and part of a wider question: Given the principle of individual rights, and given that “to secure these Rights, Governments are institute among Men,” and given the principle of outlawing the initiation of force, and given a republic, how do we keep it? The start of an answer might invoke the need for an educated and informed citizenry, but a thorough answer would require a book or shelf of books—written by the best scholars of history and law—that I would love to read.
Perhaps an answer to your more specific question would begin with citizens and statesmen citing this blog post, pointedly asking your question, and demanding a convincing answer codified into law.
Yes
Freedom v Force
Trade with freedom
I hadn’t thought of this. Don’t we have to be in a state of declared war to levy a trade ban against a nation though?
Thanks for some deep thinking on tariffs. I am so tired of the “middle-school Libertarians” who, having read David Ricardo, think they know all they need to know about international trade in a world filled with enemies of America.
Brilliant as usual Ron!
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