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Trump Takes on Harley-Davidson

Harley-Davidson has long made the motorcycles of choice for American cops, criminals, and male middle age crisis sufferers, and ranks with Louisville Slugger baseball bats and Fender electric guitars and apple pies as one of America’s most all-American products. Nonetheless, President Donald Trump now regards the company as one of his ¬†enemies in the world trade war he’s waging.
It all started with Trump imposing punitive tariffs on imports from the European Union, which predictably resulted in the EU imposing retaliatory tariffs on certain industries in the states that cast their electoral votes for Trump in the last election. Wisconsin was one of those states, and the Milwaukee-based manufacturer of the only significant American motorcycle was hit with tariffs that would raise the cost of their product by than $2,000 in the company’s second-biggest market, which predictably resulted in Harley-Davidson’s announcement that it would avoid the tariffs by building motorcycles for the European market in Europe.
Which predictably resulted in a series of “tweets” by Trump denouncing the company as un-American, threatening to impose new taxes “like never before” on it, and predicting its American customers will soon go bankrupt as its customers go elsewhere.
All of which, of course, is balderdash. Harley-Davidson’s decision to build motorcycles in Europe is the predictable self-interested economic response to the predictable consequences of Trump’s ill-advised trade war, which seems pretty American to us, and we’d note that Trump and his favorite daughter have long had the products they peddle manufactured in other countries for far less necessary reasons. Presidents are restrained by the Constitution from levying taxes on their political enemies, and even if Trump persuaded Congress to do so it would be a bill of attainder that is explicitly unconstitutional and downright un-American. If Harley-Davidson’s proudly American customers do decide to choose another motorcycle to show their solidarity with Trump, they’ll almost certainly wind up buying a German or Japanese model and paying much more for it because of Trump’s tariffs.
Pretty much everything about Trump’s trade war against the world is similarly stupid. Those employed in the steelmaking industry might benefit, but those employed in the more numerous steel-using industries are going to take a hit and anyone who buys a Harley-Davidson motorcycle or anything else made with steel is going to wind up paying much more for it. The Kansas wheat farmers and airplane-makers around here who rely on lucrative export markets to get by are going to take a hit from all the retaliatory tariffs, too, and so will all sorts of workers in all sorts industries that don’t need Trump’s protection and aren’t in his favor.
The post-World War II order that everyone agreed to at Bretton Woods and established a global market doing business with the Yankee dollar as the reserve currency unit has brought about an unprecedented era of global peace and prosperity, and despite all the ups and undeniable downs along the way America is also better off. Trump is convinced that by his sheer Nietzche-an power of will he can negotiate the rest of the world into cutting up the post-war world order goose and giving America all the golden eggs, though, and he seems to have persuaded a significant number of fans that he can.
At one of his continuous campaign rallies on Tuesday in West Columbia, South Carolina, Trump got big laughs by insulting an outgoing Republican South Carolina congressman and a dying Republican Senator and former Republican presidential nominee who haven’t been properly obeisant to the president, as well as a couple of late-night television comedians who constantly lampoon him. He also got big cheers for promising an escalated trade war against Germany, which he blames for selling more cars in America than America sells in Germany and thus creating a trade deficit, which he considers an unforgivable offense, even though everybody runs a trade deficit with somebody, which is how the world works.
The crowd loved it, even though the biggest employer by far in the nearby and thriving town of Greenville is Bavarian Motor Works, which is as iconically German as Harley-Davidson is iconically American. Those low-paying sweat-shop textile mill jobs South Carolina used to get by on have long since been outsourced to even the lower-wage and less-regulated countries where Trump and his favorite daughter have their branded neckties and women’s apparel made, but the state is by far better off with BMW running its biggest factory in the state, and why those rally-goers have more faith in Trump than the post-war world order that has brought them such peace and prosperity is hard to explain.
We have no particular affection for Harley-Davidson motorcycles, as their customers regularly interrupt our conversations on the local taverns’ outside drinking areas with their loud flatulence, and the last time we rode a motorcycle was decades ago and on one of those Japanese “rice burners,” but we’re now rooting for this iconic American brand and the rest of the world in their war with Trump.

— Bud Norman

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Swimming Against the Mighty Amazon

The anti-capitalists on the left have always railed against the biggest retail sales giant of the moment. Back in the prairie populist days they warned that the Sears & Roebuck catalogue would destroy all local commerce, and by the early 20th Century it was the A&P grocery store chain that threatened to rule us all with a monopolistic fist. Until recently the scary corporate villain was the Wal-Mart discount store chain, but they’ve lately been usurped in both sales totals and political notoriety by the on-line retail giant called Amazon.
This time around, though, it’s putatively Republican and unabashedly capitalist President Donald Trump who’s leading the boos and hisses. Trump has frequently criticized Amazon, and he did so again on Thursday with yet another “tweet.”
“I have stated my concerns with Amazon long before the Election,” Trump wrote. “Unlike others, they pay little or no taxes to state or local governments, use our Postal System as their Delivery Boy (causing tremendous cost to the U.S.), and are putting many thousands of retailers out of business!”
Putting aside our usual complaints with the usual arbitrary capitalizations and use of parenthesis and that always annoying exclamation point, pretty much every word of it is embarrassing economic illiteracy and pure balderdash. Even worse, we’d say than what the left has always peddled.
In actual fact, rather than alternative fact, Amazon does indeed collect and then pass along sales taxes on items sent to the 45 states and many localities that have decided to require it by law. The other five states apparently have their own reasons for not requiring it, probably either purely ideological or brazenly corrupt, but we figure that’s their business, and Trump is in no moral position to criticize Amazon for not paying a penny more in taxes than is most strictly required.
Amazon does indeed use America’s postal system as one of its “Delivery Boys,” but so do all the rest of us who have sent a letter or utility bill payment or greeting card or Christmas package through the postal system. This is what the postal system does, after all, and it will take one hell of a “tweet” to explain how having the country’s biggest retailer as a client is bad for business. We can well believe that Amazon has negotiated a favorable deal with its delivery boy’s biggest client, but every analysis we’ve read suggests the delivery boy should be glad for the business in these days of on-line communications, and once again Trump is in no moral position to criticize their artful dealings.
There’s no doubt that Amazon will drive at least a few thousand Main Street brick-and-mortar retailers out of business, just as Sears & Roebuck and the A&P and Wal-Mart undoubtedly did, but the Republicans and the right in general used to chalk that up to the “creative destruction” of capitalism. The much-railed-against railroads delivered delivered Sears & Roebuck catalog’s low-priced items to people across the rural areas, including all the guitars used on all the great country and blues recordings of the time, and it worked out pretty well. The A&P chain did well because it used its market share to negotiate good deals with the wholesalers and then passed the discount along to its consumers, and more recently Wal-Mart has found itself in a position to negotiate profitable deals the likes of China and pass along the everyday savings to their grateful and often obese customers.
In every case, it all proved relatively momentary and nobody wound up ruling the world. These days nobody’s afraid of the big, bad Sears & Roebuck catalogue, the last of the far-flung rural A&P grocery stores went under three years ago, and Amazon has now passed Wal-Mart both in sales and as the leading target of the traditional left and the newfangled right.
Amazon is already using drones as an occasional delivery boy, which can’t be good for the postal system’s negotiating position, and there’s no telling what they’ll come up with next. Whatever Buck Rogers gizmo they come up with, though, we’re sure that some kid in some garage somewhere on the fruited plains is on the verge of something that will overtake Amazon in sales and villainy and low, low prices to the consumer. Perhaps it’ll be one of those “Star Trek” gizmos that immediately transmits whatever your desire and whatever your credit card will allow.
It’s not that we’ll regard it as a grand and glorious day. We’re the old-fashioned sort of Main Street Republicans who still nostalgically long for that ol’ corner store — if you’ve got a few moments to spare, our friend Jonathan Richman put it especially well — and we still resent almost everything from the Sears & Roebuck catalogue to the A&P to Wal-Mart to that newfangled Amazon thingamajig. There’s something tactile and human about brick-and-mortar and face-to-face commercial interactions, and we’d hate to see it go, but we don’t worry that any kid in any garage will soon match that.
Still, we’ll be rooting for Amazon over Trump in their momentary battle for rule over the world. Amazon has ever done us any wrong, as we’ve had nothing to do with them except for their publication of our e-novel “This Town Is Nowhere,” and at this point we have more complaints with Trump. We can’t help suspecting that part of Trump’s crusade against Amazon is because it’s owner, Jeff Bezos, is provably far richer than Trump claims to be, because Trump really is that petty. Bezos is also the owner of The Washington Post, a nationaly-read newspaper that daily publishes news stories Trump would rather not hear, and that seems to have something more to do with this feud.
We don’t care much about Sears & Roebuck or the late A&P or Wal-Mart or the currently almighty Amazon, or whatever comes next, as we do little business with any of them, but the freedom of the press is dear to our heart. So is the constitutional prohibition of bills of attainder, which has long prevented the government from acting against any specific person or specific group of persons, and we don’t worry that Trump will wind up ruling the world.

— Bud Norman