Saturday, September 12, 2009
Obama: Shrink U.S. productive capacity, then impose tariffs on imports. Unreal!!
July's bigger than expected increase in the U.S. trade deficit was due to a sharp rise in imported autos. That's because the Obama Administration had been hard at work earlier in the year shrinking our domestic automotive production capacity. (Remember how he forced GM and Chrysler into bankruptcy.)
Back in March I talked about how the move to make the U.S. auto sector "lean and mean" would simply result in a shrinkage of capacity and down the road, we'd end up having to import more vehicles or face shortages. Now this is happening.
As if the damage the Administration has wrought was not enough, they are now putting tariffs on other necessary goods, like automobile tires.
Who changes their tires?
Mainly, people who own used cars and have to hold on to them for extended periods. Maybe because they can't afford a new car. Maybe because they don't have a job! (And maybe they need tires to go look for a job!)
So once again, here is an Administration that is putting in place one policy initiative after another that causes incomes and benefits to flow to the top, while those in the middle or at the bottom suffer.
It is truly outrageous.