Trump is a classic mercantilist. A mercantilist favors exporters over importers and the use of government tariffs to promote (or “protect”) less efficient, but politically favored “national champion” companies against their foreign competitors.
Protectionism fully implemented across all industries would mean a lower standard of living, because it would result in capital and labor unnecessarily being diverted into the production of goods that could more economically be produced elsewhere.
The false principle that fueled Trump’s trade war relates closely to his authoritarian response to the Wuhan (Covid-19) virus.
Voice of Capitalism
Our weekly email newsletter.
A tariff is essentially a tax that will be paid by domestic consumers.
The illogical trade policies of President Trump not only threaten to make Americans poorer, but could start a global trade war that could lead to decreasing standards of living for hundreds of millions of people around the globe.
Governments have sold their bonds to fund vote-buying welfare state spending, or expanding bureaucracies with loyal supporters of power-hungry politicians, or on delusional dreams of military power, or colossal public works projects hailing the greatness of the dictatorial or democratically elected leader.
Economic warfare threatens a downward spiral with reduced trade among nations, and declining standards of living from following this wealth-destroying path.
Preferring American-made products to those made in China or Mexico just because they were made in America, does not enhance American prosperity.
Truly free trade can only take place in free markets, not in the prevailing mixed economies where governments pick favored trading partners
Those countries that embrace free trade with new technologies stand to reap great rewards. Those who do not, and revert to trade protectionism, could experience economic recession and monetary adversity accompanied by serious social and financial upheaval.
Protectionism is not a recipe for prosperity—free trade is.
Americans will most gain from whatever trading opportunities that may offer themselves around the globe if the U.S. government follows a strict and principled policy of unrestrained and unrestricted free trade with any and all nations of the world.
“The philosophy of protectionism is a philosophy of war.”
International trade operates under the same general principles as domestic trade.
Is the protection of domestic jobs more important than the protection of individual rights?
American job losses are not the result of freer trade and an excess of imports over exports, but of government policies that prevent capital accumulation in the United States, among them policies that limit imports.
With apologies to his fans, Jerry is an evil little mouse who constantly pesters Tom the Cat. Tom tries and tries, but cannot seem to overpower someone who is a fraction of his size and strength.
Watching Stephen Moore attempt to debate Paul Krugman was like that.
All who participate gain from international trade, and all are made poorer to the extent that governments interfere or prohibit the freedom of trade among the peoples of the world.
Have you ever been in an argument about whether we should raise taxes and then someone tosses out a real whopper? “The top tax rate for decades after World War II was over 90% and look how the economy boomed!” Or perhaps you read a Paul Krugman column where he said...
In a recent defense of what he calls "fair trade," Barack Obama stated that one major purpose of trade agreements is to ensure that American products are made at home -- not bought from other countries. No such thing is true. The purpose of any trade agreement should...
There's a growing anti-trade sentiment in our country. Much of the dialogue is grossly misinformed. Let's try to untangle it a bit with a few questions and observations. First, does the U.S. trade with Japan and England? Put another way, is it members of the U.S....
Presidential candidates Hillary Clinton and Barack Obama, pandering to anti-trade activists, suggest that should they become president, they will restrict trade agreements. Before you buy into their promised paradise, there are a few trade questions you might...
For a small-scale corn farmer driven out of business in Mexico by the North American Free Trade Agreement (NAFTA), the fancy economic theories about the benefits of "free trade" might not seem too believable. As the theory of comparative advantage goes, we're all...
Such global “trade imbalances” are not a problem. They are a profoundly important means of preventing problems. What will cause a problem is allowing wreckers, devoid of serious knowledge of economics, to “fix” things.