What Comes First, the Chicken or the Tire?
Posted by David Kramer on September 15, 2009 05:30 AM
In this case, the tire. As Lew first wrote about in a previous blog, President Obamanablein his infinite economic ignoranceslapped a 35% tariff on cheaper tires made in China. So now, what do the economically-ignorant bureauRATS of the Chinese government do? In retaliation, they turn around and decide to ban chicken parts from the United States.
First we have Obamanable hurting not only the Chinese tire manufacturers, but also the middle-class and poor people in the United States who have to pay more for tires than they would have in a free market. (Just what poor people needhigher prices on a product they want to buy, especially in these “booming” economic times.) And now we have the Chinese government hurting not only their own citizens who buy chicken parts (parts, by the way, which can only be bought from United States producers), but hurting the United States chicken parts producers as well. In other words, in a classic case of unintended consequences from government interference in the free market, an entire sector of consumers and producers is hurt from government interference because of something involving government interference in a completely different sector of the marketplace (which also obviously has its own unintended consequences).
Ah what a tangled mess governments weave, with the economic policies they wrongly conceive.
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