The recently signed free trade deal between China and N.Z. is a great opportunity to remind ourselves of the sheer stupidity of tariffs, the inequitable transfer of wealth they involve from consumers to producers and the diminished wealth they bring for all.
N.Z. has got rid of most tariffs and the remainder are on their way. So far its been 28 years and we still haven't dumped them all. One remaining tariff is on whiteware. Its 7% so every washing machine, clothes dryer and other like appliance is 7% more expensive than it needs to be. Buy a Westinghouse - pay 7% more. Want a European import? Cough up 7%.
Gentle who ????
Where does the money go? Well apparently its to protect the good folks at Fisher and Paykel. N.Z. jobs don't you know. They have 1,000 of them there. There are of course more than 2.0 million other workers in the country who also consume whiteware - but hey they can afford it, can't they, at the margin?
Where on earth would the mandate for this come from? Who on earth would empower the state to use its coercive power to swipe your 7%?
Surprise, surprise your friendly Chief Executive from F&P was the dude being interviewed about what a shocking situation it was having to compete against the Chinese. F&P are good at it - I worked for one of their C.E.s in 1987 - a great guy as it turns out and an absolute expert lobbyist - that's why they still take 7% off consumers and sprinkle it on their shareholders, workers and suppliers.
N.Z. has got rid of most tariffs and the remainder are on their way. So far its been 28 years and we still haven't dumped them all. One remaining tariff is on whiteware. Its 7% so every washing machine, clothes dryer and other like appliance is 7% more expensive than it needs to be. Buy a Westinghouse - pay 7% more. Want a European import? Cough up 7%.
Gentle who ????
Where does the money go? Well apparently its to protect the good folks at Fisher and Paykel. N.Z. jobs don't you know. They have 1,000 of them there. There are of course more than 2.0 million other workers in the country who also consume whiteware - but hey they can afford it, can't they, at the margin?
Where on earth would the mandate for this come from? Who on earth would empower the state to use its coercive power to swipe your 7%?
Surprise, surprise your friendly Chief Executive from F&P was the dude being interviewed about what a shocking situation it was having to compete against the Chinese. F&P are good at it - I worked for one of their C.E.s in 1987 - a great guy as it turns out and an absolute expert lobbyist - that's why they still take 7% off consumers and sprinkle it on their shareholders, workers and suppliers.
14/03: Trade and Negotiation
The essence of trade and negotiation:
In the film "Pretty Woman" Julia Roberts and Richard Gere are establishing what price will be paid for her to spend the night with him.
Julia: "Ok, $2,000."
Richard: "Ok, so its $2,000"
Julia: "Aha gotcha, I would have done it for $1,500."
Richard: "Yes, but I would have paid $2,500."
This is well worth thinking about carefully….
