Trump Gets It Wrong: Trade Is a Winner for Americans
More below the fold.
Wealth is imports, not exports. Failing to understand that leads to myriad bad policies which only impoverish Americans. Of course, Hillary is no better, on this score, both are vying to be the Luddite President of the 21st Century, with Hillary running far ahead in the "NeoCon: Let's Go Bomb Someone" campaign. And Trump running ahead in the "Stop Immigration Now" camp.
"Lower taxes on imports from trade deals save the average U.S. household about $10,000 a year, according to the Peterson Institute for International Economics. Yet Mr. Trump wants to impose steep tariffs to “win” on trade."
Trump is just obtuse on this issue, but lifelong politicians understand that your family saving $10,000 due to imports, does nothing for the politicians family. The exporters will, on the other hand, drop large amount of money into his campaign if he votes to restrict imports. Incentives matter, and the politician will follow his incentives. This will mean import tariffs, or reciprocal trade deals.
What we should want is for America to eliminate all import tariffs, and demand the our trading partners do the same. If they don't, leave the issue. Over time, we will simply leave them behind as our economy powers away from theirs.
"Mr. Trump indulges in the real loser’s game: Always find someone else to blame. The U.S. became the most successful country in the world because Americans confronted their challenges. When Republican leaders consider their future agenda, they should reject Donald Trump’s losing litany of protectionist ideas and keep opening markets for trade."
No, open our market for trade, without concern for parity. We want Americans to be wealthy, we would be happy to bring other along as well, but if they really want to cut their throats, so be it.