Free Trade

Donald Trump’s New Enemy: Your iPhone

Doug Sachtleben - January 19th, 2016

“Trump’s latest absurd promise defies the Constitution and free markets.”

Washington, DC – Club for Growth Action, a political arm of the Club for Growth, released the following statement in response to Donald Trump’s promise to force Apple to manufacture its products in the US:

 

“Donald Trump has a new enemy: your iPhone,” said Club for Growth president David McIntosh. “Trump’s latest absurd promise defies the Constitution and free markets. Just like President Obama, Trump believes that private companies should be forced to bend to the will of whoever’s in the White House. In addition, Trump apparently doesn’t understand how free markets work and how American companies become great by making things all over the world so they are affordable and widely available to all Americans. The same university students he made this claim in front of will pay far more for their smartphones, tablets, and computers if Trump had his way and forced tech companies to ignore the world economy and abide by his protectionist dictates.  Trump would destroy the tech sector – one of America’s greatest economic assets. ”

 

Note: Speaking at Liberty University on 1/18, Trump said: “We’re going to get Apple to build their damn computers and things in this country instead of in other countries.”

 

Paid for by Club for Growth Action and not authorized by any candidate or candidate’s committee. 202.955.5500

A Washington Pastime: China-Bashing!

Doug Sachtleben - August 13th, 2015

by Andy Roth, VP of Government Affairs

 

After news broke this week that China was devaluing its currency, Sherrod Brown (D-OH), leader of the Senate China-Bashing Caucus*, wasted no time in…well, bashing China:

 

“China will stop at nothing to give its exports an unfair advantage in the global marketplace and this devaluation by the Chinese government is concerning.”

 

Senator Chuck Grassley (R-IA) also chimed in:

 

“China has manipulated its currency for a long time. This is just the latest example, and it’s past the time to do something about it.”

 

Manipulation.  Unfairness.  They’re highly-charged political buzzwords; but let’s step back a bit and examine what’s truly going on.

 

China’s economy has stalled and its government has decided that expanding its monetary supply will help reinvigorate it.  Some people call this “manipulation.”  Other people might call it “quantitative easing.”  That’s right.  The United States manipulates its currency too.  All sovereign governments do.  I would argue that expanding the money supply is not exactly a wise move, but Schumer and Grassley are engaging in some massive pot-calling-the-kettle-black name-calling.

 

So let’s drop that “manipulation” buzzword.

 

By devaluing their currency, China’s exports are now at a competitive advantage to American products.  That’s true, but is it unfair?  Chinese products will compete more easily with some products made by some American companies, potentially harming those companies.  But what about the American companies that use Chinese raw materials or equipment in making their final products?  They would benefit from cheaper imports.  What about American consumers who would benefit from paying less for the Chinese product?  They could use the savings for more spending that boosts the U.S. economy.

 

So, if China’s currency devaluation is unfair, why are politicians like Grassley and Schumer siding with some American companies at the expense of other American companies and American consumers?  Probably because they’re politicians, who like to pick winners and losers for political purposes.

 

So let’s drop that “unfair” buzzword, too.

 

One more thing to think about:  what is a Chinese product and what is an American product?  Global supply chains make it impossible to define that nowadays.  Everyone would agree that the iPhone is an American product, but it’s assembled in China and shipped to the U.S., thus iPhones could become cheaper because of China’s latest monetary decision.  The Toyota Camry is considered a Japanese car, but a lot of Camrys are produced in the United States, and built with a ton of American parts.  In fact, a Camry has so many American parts, it’s consider the Most American car in the market.  Brain. Explosion!

 

So when Schumer, or Grassley, or even The Donald decide to bash China and recommend higher taxes (that’s their solution), you’ll know they are just being politicians who aren’t mindful of the facts.

 

* There is no China-Bashing Caucus, but if there was, Brown would be its leader!

Key Vote Alert – “YES” on Senate Vote on Trade Promotion Authority (HR 2146)

Andrew Roth - June 22nd, 2015

KEY VOTE ALERT

“YES” on Trade Promotion Authority (HR 2146)

The Club for Growth urges all Senators to vote “YES” on the bill (HR 2146) that authorizes Trade Promotion Authority (TPA).  A clean vote on this is expected this week.  This vote will be included in the Club for Growth’s 2015 Congressional Scorecard.

There’s a lot of controversy surrounding the debate on TPA, but at the end of the day, it is a procedural device that we believe will advance the cause of freer trade and more economic growth.

Our Congressional Scorecard for the 114th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.

Key Vote Alert – “NO” on TAA Reauthorization (HR 1314)

Andrew Roth - June 12th, 2015

KEY VOTE ALERT

“NO” on TAA Reauthorization (HR 1314)

The Club for Growth urges all House members to vote “NO” on the bill that reauthorizes Trade Adjustment Assistance (TAA).  A vote on this is expected today as part of the debate on the Trade Act of 2015 (HR 1314).  This vote will be included in the Club for Growth’s 2015 Congressional Scorecard.

TAA is a wasteful welfare program that even some supporters have recognized as ineffective.  It selectively rewards workers who lose their jobs due to trade (a determination that is itself subjective and tenuous) and discriminates against those who lose their job from market forces unrelated to trade.  This makes it a political special interest giveaway.  Worst of all, an analysis commissioned by the Labor Department found that the net benefit to society of TAA was a negative $53,802 per participant.  Any House member committed to rooting out waste in the federal government should vote “NO” on this proposal.

Our Congressional Scorecard for the 114th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.

Key Vote Alert – “NO” on Adding Ex-Im to the Defense Bill (HR 1735)

Andrew Roth - June 04th, 2015

KEY VOTE ALERT

“NO” on Adding Ex-Im to the Defense Bill (HR 1735)

The Club for Growth urges all Senators to vote “NO” on any amendment to the National Defense Reauthorization Act (HR 1735) that would reauthorize the Export-Import Bank.  This includes all procedural votes.  If such an amendment passes, the Club for Growth will score against the underlying bill.  This could also include procedural votes that help advance the bill.  These votes will be included in the Club for Growth’s 2015 Congressional Scorecard.

The Export-Import Bank is nothing more than a slush fund for corporate welfare.  It’s also riddled with corruption and graft.  Senators committed to fiscal conservatism and limited government should use all procedural tactics to block consideration of any amendment that reauthorizes the Bank.  Failing that, they should oppose the amendment, and if need be, the underlying bill.

Our Congressional Scorecard for the 114th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.