As a byproduct of the United States government's trillion dollars largesse to consumers, and the inability of U.S. production keeping up, the U.S. again has experienced a huge trade gap increase.
It swelled from 31 billion dollar in February of 2020 to 71 trillion dollars during last February 2021.
Perhaps not coincidentally, the Chinese government recenty announced that their export trade in February of this year increased a whopping 53 %, most of the exported goods going to our country.
What to do about it?
Well, our last president tried to impose sanctions against China. That did not work, since it were the U.S. consumers who paid the import duty, not the Chinese. Other measures falling prey to International Trade Laws.
So, why not do it the "French" way?
Here is an example from the past of how it was done:
As I recall reading in the 1970s, the French poultry farmers cried "foul" because their business was becoming ruined due to massive imports of frozen chicken from America.
The French government was apparently stymied. All conventional measures like import duties were off the table. It would create political problems.
Finally, a smart bureaucrat had an idea, why not spread the rumor that U.S. poultry was fed with chemicals which, in turn, reduced men’s sex drive, something disliked by French women?
This supposedly worked somewhat but the rumor was not universally believed.
So, the story goes that the government tried reverse psychology. They paid a well known scientist to go on TV and announce the sex story is not true.
Like most people, the French will believe any rumor once the government officially denies it.
Anyhow, this turned out to be a smashing success and, if memory serves correctly, poultry imports decreased the following month by a whoping success. Viola!
In another example, involving excessive imports of Asian produced electronic video recorders, hurting the domestic manufacturers the French had another genius idea.
Here, the solution was quite simple, as I remember reading.
The French trade ministry published an edict stating that, in the future, all imports have to be cleared at a small duty post at the French/Spanish border, which coincidentally was located in the middle of the Pyrenees mountains, away from any airport.
From then on, only really desperate import dealers were brave enough to travel the thousand miles in order to get a stamp on their papers.
Again problem solved! Perhaps the U.S. can take lessons from these stories, and apply them to our current import scenario.
Dr. Hans Baumann, a former Corporate Vice President and founder of his company, is a well known inventor, economist, and author having published books on scientific, economic, and historical subjects. He is a member of the American Research Society and an Inductee of the Hall of Fame of Automatic Control, besides also being an honorary member of a number of technical societies. Read Dr. Hans Baumann's Reports — More Here.
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