Josh Hawley Is Of Small Mind That Can't Make Its Way To The Unintended Consequences
I'm still somewhat amazed by how many utter idiots are elected by purportedly mentally competent voters.
They unceasingly fail to think through (or ring a person who can think through) the possible consequences of their proposals.
Of course, sometimes what those of us who are rational see as an awful consequence, idiot politicians see as a positive -- if it, say, runs counter to capitalist principles (that have done more to raise people out of poverty globally than anything else).
Eric Boehm writes at Reason:
Sen. Josh Hawley (R-Mo.) has a plan to address the current supply chain issues bedeviling the American economy.He wants to make them permanent.
In an op-ed for The New York Times published Friday, Hawley uses the temporary supply chain problems as an excuse to push for a permanent expansion of federal power over the affairs of private businesses. We must "fundamentally restructure our country's trade policy," Hawley demands, and that means injecting both the Pentagon and Commerce Department bureaucrats into companies' purchasing decisions. Under the terms of a bill that Hawley is proposing, any product determined to be "critical for our national security and essential for the protection of our industrial base" would have to have at least 50 percent of its value made in the United States.
Why is it necessary for the government to get significantly more involved in the system of global trade that's allowed Americans to enjoy unparalleled prosperity in recent years? Because "the global pandemic has exposed this system for what it is--a failure," Hawley writes.
One must assume that if the lights in his home went out due to a storm, Hawley would respond by declaring electricity to be a mistake and demanding that the government require homes to be lit with candles and gas lamps. After all, what is the electrical grid but a complicated supply chain that leaves Americans woefully dependent on production and distribution systems (power plants, substations, and lines) that they do not fully control? Better to produce your own lighting, right? If that means you have to live without television or the internet, well, those are just the trade-offs required to achieve self-sufficiency.
A storm--or a pandemic--can create temporary problems in the highly complex systems that run so much of the modern world. That's hardly a reason to abandon them. If Hawley is imagining a world in which the United States is wholly self-sufficient, then he's asking you to accept a scenario in which the United States is significantly poorer than it is today.
"The supply chain for an Apple iPhone crosses an international border more than 600 times, and if it didn't, you probably wouldn't have one--it would be too expensive," writes Mario Loyola, a senior fellow at the Competitive Enterprise Institute, in an op-ed (paywalled...sigh) for National Review that does a much better job than Hawley's of outlining the true culprits of the supply chain nightmare.
...As Scott Lincicome, a senior fellow with the Cato Institute, points out, the vast majority of food consumed in the United States is grown, raised, and otherwise produced here. And yet Americans are seeing higher prices and supply issues at the grocery store too.
"That a mostly‐domestic U.S. food supply chain hasn't protected American consumers from recent shortages and price increases is unsurprising," Lincicome writes. "For starters, many of the same things that stress global supply chains--COVID-19 outbreaks; supply‐demand imbalances; labor shortages in the trucking and warehousing industries; misguided trade, transportation, and immigration policies; etc.--stress domestic ones too."
Hawley's proposal, therefore, would be ineffective at best. At worst, it would impose new barriers between producers and consumers, beef up the regulatory power of the federal government, and arbitrarily ban products that Americans would otherwise choose to purchase. Hawley's ideas won't resolve the supply chain problems plaguing America; they would make empty store shelves the new normal.








I, for one, am not particularly interested in having our ballistic missile’s guidance systems chips and software made in China. You?
Isab at October 31, 2021 6:21 AM
It would be better if some or most of our manufacturing was done here, how we reach that is a different story. Relying on other countries, especially ones who hate us for needed goods is opening for disaster.
Joe J at October 31, 2021 7:18 AM
There are times that National Security does have to take precedence over cheap goods. I agree Isab.
Causticf at October 31, 2021 12:29 PM
For the most part, electricity in the US is today effectively delivered by the government. Utilities are among the most regulated of industries with governments regulators having enormous say-so over profit margins, budgets, rate changes, delivery terms, new plants, and maintenance.
Conan the Grammarian at October 31, 2021 1:16 PM
Currently reading a history of the French Air Force. As the French strove to increase aircraft production in 1939, they contracted with Ford Motor Company to make the British-designed Merlin engine in France. But when war broke out in September 1939, Henry Ford, who was committed to neutrality, directed that the Ford equipment, tooling, and people be withdrawn. No Merlins for you!!
Closer to our own time, during the Iraq war, the Swiss company Swatch refused to supply components for the JDAM missile.
https://www.washingtontimes.com/news/2003/jul/24/20030724-113347-4214r/
There are problems with Hawley's proposed solution, but the problem is a real one, and most politicians are happy to ignore it or even try to make it worse.
David Foster at November 1, 2021 1:42 PM
Governments' panicky responses to the virus created this supply chain discombobulation; one cannot turn economies on and off like a light switch. It is amazing anyone is so stupid as to believe government action can fix them.
That said, tariffs need to be placed on anything being imported from hostile nations that have any military or high tech application. We need to control the manufacture of such things, and that only happens when the manufacturing occurs within our own borders.
ruralcounsel at November 3, 2021 10:35 AM
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