A note about trade and the recent election

To our customers,
It is not the usual business of Megadent to participate in political discourse. However, the anti-trade tone of the recent presidential campaign and incoming administration has created uncertainty among many of our stakeholders, including and most importantly some of our customers, so we feel obligated to acknowledge certain issues related to our outsourcing operations in order to possibly provide some clarity.
The new administration has threatened to impose 45% tariffs on imports from China. We think it’s important to make the distinction between campaign rhetoric and decisions made while in office under a strong system of checks and balances. A tariff of this size would undoubtedly cause a trade war and significantly and immediately distort the purchasing power of most Americans. Global supply chains would be disrupted, and economists estimate between 1 and 5 million American jobs would be lost, including many service-sector positions.
While America’s trade relationships will always benefit from constant reevaluation, it is our conviction that free trade overwhelmingly provides a net benefit to societies and improves the general economic welfare of its citizens. That some groups have been disfranchised due to trade policy in the last 20 years is legitimate. However, an attack on trade as a rectification is incomplete without thorough changes to safety nets, corporate taxation, and regulatory policy among other things. Further, it is imperative not to discount the effects of automation of global production, a trend that is unlikely to be reversed on a large scale by any government.
We’re convinced that Megadent and our customers, as facilitators of global free trade, have been net providers of dental benefits in America. In this era of rising overhead in every category and declining allowable fees across the board, we have assisted the ability of dental providers to continue offering many restorative services to consumers, and in many cases increased this access by consumers who otherwise would not have been able to afford these services. Ironically, a lot of the growth we have experienced in the last 5 years has been in communities whose populations have voiced the most concern over trade. We know this to be a result of greater access to dental care that was largely absent before, not an imposition of unfair trade practices.
Our hope is that you will join Megadent and continue to trust that a global economy unencumbered by tariffs and protectionism is the correct direction. Thank you for your time and attention. We appreciate any feedback, as open and honest discussion is the only way we can achieve true understanding.
Eric and Tammy Gaensehals


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