“Tariff’s are a Tax on the Consumer” – Bastiat
Trump’s assertion the United States historically operated under a “Great” tariff system is egregiously false. It certainly wasn’t true at the nadir of the Robber Barons‘ rape of America’s “free enterprise” system.
D.C. Cloud, Monopolies and the People, Muscatine, Iowa, July 28, 1873:
“For two years past the author has awaited the auspicious moment for presenting to the public his views upon the oppressions and abuses practiced by corporations and combinations of men who were getting controlling influence over the commerce, finances, and government of the country.
Notice the author quotes quite liberally from statutes and resolves of congress.
Chapter IV. How Congress Betrayed the People. . . . . pgs. 40-48
Chapter VIII. Has Congress Power, Under the Constitution, to Create or Endow [or Bail Out] Private Corporations?. . . . . . . . . . . . . . . . . . . . . .. . . . .. .pgs. 81-91
Chapter IX. State Rights at the Bar of a Corrupt Congress. . . pgs. 92-98
Chapter XV. Watered Stock – Its Unlawful Profits the Source of Extortionate Tariffs; . . . .pgs. 138-146
Chapter XVI. The Monopolists Relieved of the Burden of Taxation – An Outrage Upon Republican Government. . . . . . . . . . . . pgs. 145-151
Chapter XX. The United States Treasury the Vassal of Wall Street. . . . . pgs. 186-197
Chapter XXI. . . .Wall Street . . . A Hot Bed of Corruption. . pgs. 198-201
Chapter XXII. The Supreme Court Invaded . . . . pgs. 202-222
Chapter XXIII. Bank Monopolists – Their Control of the Currency – A Bankrupt Financial Policy. . . . . . pgs. 223-230
Chapter XXIV. Our Tariff Policy – Does “Protection” Protect?. . . . . pgs. 231-239
Introductory Chapter: “ . . . Serious dangers are threatening the people. There is a power in the land, possessing elements destructive . . . of the very form and spirit of republican government.
… corporations . . . by united and persistent efforts, obtained control of the government; their interests are guarded and protected by the legislative, executive, and judicial departments of the government, both state and national.
These men are combined in opposition to the people; they are found in all Parties; controlling the government in their own interest; fastening upon the people oppressive monopolies, and of enriching themselves at the expense of the public. They procure donations of land, money, subsidies, protective tariffs, continue a depreciated currency, and by arbitrary rules and by-laws of their own, hold the whole people at their mercy.
Page 10: To such an extent have these monopolies been fostered and protected that at the present time the farmer pays in freights, taxes, and duties, at least one-half of his farm products for their support.
Taxing the people for the purpose of aiding private enterprises , the donations of public land, or of the public money, to individuals, or companies, the enactment of laws by which the people are compelled to pay a part of their hard-earned substance to aid private parties in accumulating wealth, are oppressions not be tolerated in a Republic.
It is the duty of the government to use public money in matters such as the improvement of rivers, harbors, etc. But legislation, approved by the executive and judicial departments of government, and supported by the legislature and courts of many of our states, is anti-republican and oppressive to the people.
We refer to the current special legislation in favor of protective tariffs, the banking system, and financial policy of the government.
Page 41: The government is paying the interest and collecting the amount from the people in tariffs and excise taxes. The payment of the amount of these bonds, with interest will require $200,000.000.00 [million]. This amount, or nearly all of it, will be paid by the people not by the companies.
Page 162: Under this “charter” complaints arose that . . tariffs were arranged as to seriously discriminate against the trade and commerce of Iowa towns and in favor of points beyond the state; these tariff rates were also arranged to deprive our people of a choice of markets, rendering the Mississippi river useless as a highway of trade and commerce, and compelling our people to pay tribute to Chicago or go without a market.
Page 235: We cannot pay transportation costs and compete with other grain-producing countries. With our high protective tariffs; extortionate charges for inland transportation by corporate monopolies, and immense foreign debts, absolute financial ruin must overtake us unless a different policy is adopted.
Page 324: All tariffs are unjust and oppressive. The true rule in all commerce is to sell where we can obtain the best prices, and to purchase where we can obtain the desired article for the least money.
Protective tariffs should be repealed.
No class is more oppressed by protective tariffs than the farmers and producers of the country. With high protective tariffs farmers and producers pay much more than their just proportion to the support of the government.
Page 326: The only benefit thus far resulting from our present high tariffs is the enriching of a few men by the imposition of unequal burdens upon the farming and producing classes.
Page 329: The right of agriculturists will never be enjoyed until protective and revenue tariffs are abolished.
Page 341: With protective tariffs abolished and the financial policy of the government so changed as to furnish to the people the same kind of money used by the government…”
– D.C. Cloud, Monopolies and the People, Muscatine, Iowa, July 28, 1873.
“From the foundations of the United States government custom frauds have been continuous.
Officials of the New York Customs have been the greatest offenders. Their profits are small compared to the illegitimate gains of their employers, the great importers who comprised the “respectable” and highly “virtuous” chambers of commerce and boards of trade.
All sections of the commercial and financial class were cheating, swindling, and defrauding with almost negligible molestation from the government.” – Gustavus Myers, History of the Great American Fortunes, 1936; 712 pgs.
Trump didn’t lie when he said tariffs worked “Great!” Like the Devil (politicians, car salesmen and communists) who will tell you nine truths to make you believe one Big Lie (see: The Screwtape Letters by C.S. Lewis, 2001; 224 pgs.), Trump failed to mention tariffs worked “Great” for the Robber Barons (see Trump Townhouses and Trump Tower nightly rates compared to other local hotels).
Trump exaggerates the value of his property to gain a larger loan from a colluding bank (who makes money off his money in their bank). When taxes are due, Trump grossly undervalues his property -like all other of the wealthy – by millions of dollars to pay a much lower property tax rate. This is a direct descendent of the Robber Baron’s tactic. In doing so, he pays no or much less tax than actual assessed value as required by law. To make up for this, city councils pass the deficit tax burden onto the average tax payer who does pay his property’s assessed value – whose taxes increase to make up for Trump’s cheating.
For you and me this is fraud and illegal.
City officials are bribed to ensure no charges are brought against the wealthy in exchange for political support at the ballot box but the average tax payer goes to jail for doing the same thing and loses their home or business.
These Robber Baron practices are still in vogue today:
- Congress bailing out bankrupt cities, airlines and the automotive industry. “Too big to fail” is a congressional fiction fostered to curry political favor. If repaid at all, very little of the total loan is actually paid back to the American taxpayer. Congress doesn’t pressure those entities to pay it back for risk of losing political support during reelection – the same way they rescinded all remedial financial regulations to prevent another 2008 Mortgage Crisis.
In a truly free market, every private enterprise should be allowed to fail in order for venture capitalists to invest, reform and prosper from their investment. What the government does now is selective socialism based on political favoritism. - Cities and Counties across the nation routinely ignore corporations not paying local taxes (property, utilities, etc.) for political support at the polls. Citizens are duped into believing this is fair considering the “business” corporations bring to their community. That is a red herring. Their “exemptions” are miniscule compared to the profiteering taken from the consumer. Municipalities move the unpaid corporate taxes onto the shoulders of the taxpaying consumer.
- Cities colluding with NFL teams to build new arenas at taxpayer expense – are either never repaid or when public attention is occupied elsewhere, ordinances are passed absolving team corporate from repaying anywhere the total amount. The taxpayer is bilked twice: in increased taxes and in increased ticket prices.
- After the Green Bay Packers won the first two Super Bowls it was the citizen-shareholders of the city of Green Bay who reaped the reward. In response, the NFL owners association amended their charter prohibiting any other NFL team from being publicly owned.
This monopoly directly violates the Sherman Antitrust Act and Fair Trade laws prohibiting restriction of free trade and commerce.
Opening the NFL market for investment by the average citizen would enable them to share in its profit and reduce costs.
It would be a more sound expenditure of hard earned money than the fool’s game of sports’ betting. - Defense contractor monopolies hire employees at an average wage of $65-75 thousand per year and pocket the rest of the average $185K they receive from the government for each employee.
Those are just a few examples of profiteering and price gouging perfected.
Source: https://babel.hathitrust.org/cgi/pt?id=miun.abz0161.0001.001&seq3
See also:
- On Progress, Sociology and Economics by Robert Jacques Turgot (1727-1781) reprinted with a translation by Ronald L. Meek, 1973; 182 pgs.
- Economic Sophisms, The Complete Works by Frederic Bastiat, 1848; reprinted 2018; 204 pgs.
- The Shame of the Cities by Lincoln Steffens, 1902; 224 pgs.
- History of Standard Oil Company by Ida Tarbell, 1904; 466 pgs.
- Frenzied Finance: the Crime of Amalgamated by Thomas Williams Lawson, 1905; 580 pgs.
- The Treason of the Senate by David Graham Phillips, 1906; 108 pgs.
- History of the Great American Fortunes by Gustavus Myers, 1936; 712 pages
- Burning Money: The Waste of Your Tax Dollars by Peter Grace, 1984; 188 pgs.
- Trading with the Enemy: An Expose’ of the Nazi-American Money Plot, 1933-1949 by Charles Higham, 1983; 280 pgs.
- The Creature from Jekyll Island: A Second Look at the Federal Reserve by Edward Griffin, 1998; 608 pgs.
- The Great Deformation: The Corruption of Capitalism in America by David A. Stockman, 2013; 768 pgs.
