Posted Jan 27, 2017 by Martin Armstrong
QUESTION: Do you support Trump’s wall?
ANSWER: A wall will not end the crisis. You can use boats as well. What are the issues? First, the purpose of the wall is to stop the drug trade. It will put a dent into it, but it will not eradicate it. Second, is the immigration. There are many people along the border who want to stop the illegal immigration because they bring in kids who then go to school and cause taxes to rise yet these people do not pay income taxes. The solution is very simple. Eliminate income taxes and compel states to survive on consumption taxes. Then it will not matter who is here, everyone will pay their fair share.
If it is really just about illegal immigration, then you can deal with that financially. Many illegal immigrants come to the States to earn money to send home. Prevent sending money to Mexico and you will change the incentives. Any Mexican who in the USA legally, has a bank account and can send money to relatives legitimately. Illegal immigrants would not be able to send money home but then you would probably create a black market.
The Mexican President Enrique Peña Nieto is refusing to meet with Trump was the worst possible decision he could have ever made. He just cut off diplomatic relations with the United States. He will now not be taken seriously and cannot in any way negotiate behind the curtain. He just killed US-Mexican relations. Refusing to even talk eliminates the possibility of resolution.
Let’s dig deeper. Many people come to the States for employment. There are many businesses who need labor willing to do hard work for Americans as a rule see that beneath them. Therefore, you have a demand for labor in the United States that goes unfulfilled and you have people willing to be hard workers in Mexico. The solution here is also simple. Introduce a market-based visa system whereby you can buy a visa for such jobs. The employers would gladly pay the fee and you would end smuggling people into the States for those jobs.
Clamping on 35% tariffs on all foreign goods introduced makes no sense. It will not change the real core problem. American unions sent their own jobs overseas because they were too abusive in their demands. Companies leave NOT merely because they can hire someone for $10 and hour less in Mexico than at home. The United States tax code is insane. It soars during Democrat control and declines during Republican control. Companies cannot construct a business plan because the tax swings are insane. Would you rent an apartment with a lease that said the landlord can raise your rent anytime he want on a whim? You cannot build a plant and then draft a business plan for 20 years when taxes can change at any time.
The ONLY way to create economic stability is to make taxation UNTOUCHABLE. We have to end this Marxist way of running our country. Until that is accomplished, we will always look for band-aids to keep the game going between elections.