Why We Can't Have Nice Things

Why We Can't Have Nice Things: The 'Chicken Tax' That Makes Pickup Trucks More Expensive


Listen Later

The brief trade war between the U.S. and Europe in the early 1960s might seem hardly worth remembering—and it pales in comparison to the political and cultural upheaval that defined that decade.

But any American who has bought a pickup truck in the past 50 years has been collateral damage in that conflict—a conflict that started because European farmers were mad about American exports of frozen chicken.

The 25 percent retaliatory tariffs that President Lyndon B. Johnson set on imported light trucks have fenced off the American pickup truck market from foreign competitors for decades. As a result of the so-called chicken tax, consumers pay higher prices, and a handful of brands have become dominant in the marketplace. The other tariffs that were part of that long-ago trade war have been repealed. This one remains.

"There are a few people highly invested in keeping it around and no one really cares to get rid of it," explains Jordan Golson, a freelance automotive journalist. When it comes to tariffs, he says, "It's not easy to make one of these rules, but it's a thousand times harder to get rid of one."

On this week's show, Golson also discusses the lengths that some foreign truck-makers have gone to in order to avoid those tariffs. That includes the story of the Subaru BRAT: a small pickup truck that was imported to America with seats installed in the truck bed—so it would be classified as a passenger vehicle rather than a cargo vehicle and, thus, exempt from the 25 percent import tax.

Daniel Griswold, an adjunct scholar at the Cato Institute, reminds us that the chicken tax has caused real economic harm in addition to those funny, creative attempts at tariff dodging.

"The U.S. government is artificially constricting competition in that market, and that means higher prices, it means less choice," Griswold says.

Automobiles can be imported to the U.S. with tariffs of just 2.5 percent, and the result has been a far more robust market for consumers and greater foreign investment in making cars in the U.S.—something that hasn't happened in the truck market due to the trade barriers.

The chicken tax has been "a losing proposition all around for Americans, consumers, and the American economy," says Griswold. It's also a great example of how tariffs can stifle, rather than protect, domestic markets.

 

Further reading for this week's episode:

"Cheap American Chicken Gave Us This Weird Subaru Pickup," by Golson, Wired

"Why Are Pickups So Expensive? Blame the Chicken Tax," by Griswold, Cato Institute

"How a Tax on Chicken Changed the Playing Field for U.S. Automakers," by Sonari Glinton, NPR

 

Written by Eric Boehm; produced and edited by Hunt Beaty; mixing by Ian Keyser; fact checking by Katherine Sypher

The post Why We Can't Have Nice Things: The 'Chicken Tax' That Makes Pickup Trucks More Expensive appeared first on Reason.com.

...more
View all episodesView all episodes
Download on the App Store

Why We Can't Have Nice ThingsBy Why We Can't Have Nice Things

  • 5
  • 5
  • 5
  • 5
  • 5

5

130 ratings


More shows like Why We Can't Have Nice Things

View all
Cato Podcast by Cato Institute

Cato Podcast

959 Listeners

The Joe Rogan Experience by Joe Rogan

The Joe Rogan Experience

226,088 Listeners

The Ben Shapiro Show by The Daily Wire

The Ben Shapiro Show

153,896 Listeners

The Fifth Column by Kmele Foster, Michael Moynihan, and Matt Welch

The Fifth Column

2,837 Listeners

The Editors by National Review

The Editors

4,802 Listeners

The Reason Roundtable by The Reason Roundtable

The Reason Roundtable

1,501 Listeners

Pod Save America by Crooked Media

Pod Save America

86,615 Listeners

Behind the Bastards by Cool Zone Media and iHeartPodcasts

Behind the Bastards

15,277 Listeners

The McCarthy Report by National Review

The McCarthy Report

2,819 Listeners

The Reason Interview With Nick Gillespie by The Reason Interview With Nick Gillespie

The Reason Interview With Nick Gillespie

725 Listeners

The Soho Forum Debates by The Soho Forum Debates

The Soho Forum Debates

192 Listeners

Advisory Opinions by The Dispatch

Advisory Opinions

3,773 Listeners

The Dispatch Podcast by The Dispatch

The Dispatch Podcast

3,167 Listeners

GoodFellows: Conversations from the Hoover Institution by Hoover Institution

GoodFellows: Conversations from the Hoover Institution

679 Listeners

The Megyn Kelly Show by SiriusXM

The Megyn Kelly Show

38,589 Listeners

The Reason Rundown With Peter Suderman by The Reason Rundown With Peter Suderman

The Reason Rundown With Peter Suderman

59 Listeners

The Best of Reason Magazine by The Best of Reason Magazine

The Best of Reason Magazine

17 Listeners

Just Asking Questions by Reason

Just Asking Questions

100 Listeners