Trade Wars: It’s Always You That Pays

06.03.2018 • France

Simone Wapler – La Chronique Agora (France) –

The so-called “trade war” is in reality a war of stupidity and its collateral damage is borne by each one of us.

Last week I told you about the German Mittlestand . Unlisted mid-sized German companies are able to export all over the world.

My in-laws, of German origin, usually hold a Wapler Tag every two years. A few years ago, I made a surprising discovery: one of the world’s specialists in stainless steel kitchens and equipment for seafood restaurants was a “cousin Wapler”.

Its factories, located on a small wooded hill not far from Munich, export to Australia and Japan. He explained to me that he had designed a steel grade and manufacturing processes specifically adapted to this market, where the working environment is saltier than in traditional restaurants because of the presence of seawater. and the more demanding standards. He speaks good German English. He seems neither more nor less awesome than a French entrepreneur, has not received any particular subsidy or support but he exports, earns a good living, pays well his German employees, his customers are satisfied.

The nonsense of economists about the trade war is getting boring. To read and hear them:

Germany exports too much France (or the United States, or all countries that import more than they export) consumes too much Japan “lives off its rents abroad” and works too much China is dumping and sells at a loss …

A country does not export. A country does not consume. A country does not have rents. A country does not sell. These are people who do all this.

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People buy German products from Germans because they feel they have a good value for money. “There is less Chevrolet in Berlin than Mercedes in New York” because Americans prefer Mercedes (and in addition Berlin has fewer inhabitants than New York). French people prefer to consume foreign products. Some even drink Italian wine! Aging Japanese have made investments abroad for retirement. And I do not think a Chinese boss survives long by selling below his production prices.

China subsidizes its steel exports, so what? This means that unfortunate Chinese pay taxes to make their steel cheaper abroad. Those who will be using this Chinese steel abroad will lower their production costs and benefit their happy customers. Why do you want to protect the domestic producers of steel and only those at the expense of the rest of the people?

The only fair and equitable system is free trade. It is the only one that does not puncture a majority to protect the interests of a minority. As for the national preference, everyone is free to apply it. Why impose it by force?

The “trade war” is just another pretext for our great planners and serves only crony capitalism. “If the United States wants to establish barriers, we will be as stupid as them,” warned Jean-Claude Juncker speaking of taxing more, in retaliation, jeans, bourbon and Harley Davidson? Read this sentence again: a European official proudly declares that he wants to be as stupid as his opponent. It’s like being in a primary school playground …

Global stock markets have been hit. Indeed, a war of stupidity, this is scary and some are very well armed. [Ed: Far from all this nonsense, find out here how to invest to finance the growth of a profitable and unsubsidized company.]

-Read more at (French)-

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