One paragraph in this Bloomberg article boggles the mind:
`A report by the Commerce Department had found that America’s innovation capacity “is now at serious risk as imports continue to displace American-owned production.” Trump was facing a May 18 deadline to make a decision on auto tariffs. “The lag in R&D expenditures by American-owned firms is weakening innovation and, accordingly, threatening to impair our national security,’’ according to the draft executive order.’
So, US companies under-invest in R&D, put out lower quality and/or undesirable cars, Americans buy quality and desirable cars from companies that do invest in R&D (BMW, Toyota), and now we need to apply tariffs to the cars Americans purchase because of “national security”??? Meanwhile, we de-invest in education at home and restrict immigration of hard working and skilled labor. Oh, and American consumers bear the costs of tariff’s (see this article: HTML).
Pardon the pun here, but I hope that vision will clear and delusion will subside in “2020.”
Trump Mulls 6-Month Window for EU, Japan to Curb Auto Sales
Jenny LeonardMay 15, 2019, 6:24 PM PDT
Photographer: Qilai Shen/Bloomberg
David J. Moore, Ph.D.
Associate Professor of Finance
California State University, Sacramento