CDZ How to Use Tariffs as Weapons and Not Hurt Yourself...

The recent desperate tactic of putting Mexico on notice about controlling their border with threats of tariffs raises a lot of hackles.. Congress bleating on both sides of the aisle that it is a tax on consumers and hurts us more then them...

Well certainly tariffs hurts BOTH sides. And Mexico will pay a price for being slow or lazy to get on the problem.. But it does NOT NECESSARILY NEED to hurt American consumers... Just heard on top of the hour news that Congress is concerned about how much it will cost the average American.. Should they BE concerned? Or do they just not UNDERSTAND how tariffs work? Because CERTAINLY, every dollar of those tariffs that Mexico pays goes into the Treasury.. Mexico PAYS, The US Treasury POCKETS THE MONEY. And consumers have to foot the bill.

How is that FAIR when the Treasury will just flush the Mexican cash into the General Fund with the hopeless megaflood of other debt-ridden liabilities... And LET US pay the price increases..

We're pretty ignorant suckers to fall for that scam...

Why is it that CONGRESS can't figure out how to PROTECT American consumers in this case? It's obvious how that could be done.. All they have to do is EARMARK those tariffs with a goodly portion being REBATED to every working American family..

Something like 40% to the General Fund, 20% to border security and border infrastructure, and 40% REBATED to every working, tax filing American either by tax credits for the duration of the punitive tariff measure, OR a percentage DECREASE in the FICA taxes due.. For the latter, that would flow to both workers and their employers who would also take a hit.. The 40% to the General Fund completely offsets the cost of ANY 40% rebate to American workers..

Now I'm not a fan of tariffs for ECONOMIC reasons.. That's a lose-lose dead end strategy.. But tariffs to get the attention of recalcitrant or dishonest international partners is a quick and easy to emphasize --- "this is a priority"....

And I'm AMAZED that Congress results to just WHINING about the effects, when the money is THEIRS to ameliorate the damage to their constituents.... So many analysts and talking heads and politicos and NO ONE POINTS THIS OUT??????

 

And BTW -- this phony number of "costing the average American Household $6600" for this tariff gambit is pure garbage.. I checked around my house and unless I buy TWO CARS during this spat, I don't see more than $400 of Mexican goods that I need to BUY this year.. So my tariff hit would be about $100 --- worst case...

 

Yeah so? More money to the Treasury that can be rebated to American workers and their employers.. Mexico pays..