Daily Adams

Trade

Trumpnomics Robs Poor, Middle Class

Leaving aside for a moment the undeniable legal, political, and economic hurdles to unilaterally imposing a 45 percent tariff on all Chinese imports, as well as the utter gibberish at the end of Collins’ response about inflation and the federal budget (seriously, I have no idea), let’s take the plan at face value. According to Team Trump, their import tax would (i) force American consumers to pay 10 to 15 percent more for food, clothing, shoes, electronics, and other basic necessities; and (ii) thereby assist American manufacturing companies and their workers.

Put another way, Team Trump has now freely admitted they want to indirectly subsidize U.S. manufacturers via higher prices that American families and businesses would be forced to pay for these domestic producers’ goods.

Via Endorser Agrees: Trump Policies Will Benefit Rich at Expense of Poor and Middle Class @ Cato Institute.

Protectionism: Every where, Nor Any Drop to Drink

But sometimes what seems like an obvious solution can exasperate the underlying problem. Imagine that you are stranded in the Atlantic Ocean and dying of dehydration. The “obvious” solution would be to drink the water that is all around you — the water from the ocean. But if you drink the salt water, you’ll merely be increasing the level of salinity in your body, causing you to die even sooner.

The same is true for protectionism. As I wrote on Tuesday, America’s adoption of protectionismmakes us poorer, not richer. But the fallacy of protectionism tends to persist because it is associated with other economic fallacies and misunderstandings.

Via Why Protectionism Is Like Drinking Salt Water @ Acton PowerBlog.

Nine 

The current debate over Trade Promotion Authority proves, once again, that the classic description of the anti-globalization movement—as “largely the well-intentioned but ill-informed being led around by the ill-intentioned and well informed”—still holds true. Despite the tireless efforts of trade policy experts to explain why TPA and the U.S. trade agreements it’s intended to facilitate…

What are they building in there?

“A broad, sweeping, global treaty which will/may fundamentally shift how trade is done in the world and in the USA is still secret and thanks to Senate Republicans is halfway to getting “fast track” status. That is the treaty will be voted on for final approval by Congress with a simple “yes” or “no” vote,…

Free Commerce as an Anti-Poverty Program

“Several years ago economist Bryan Caplan provided the most succinct and helpful statement about how we should think about free trade: “We’d be better off if other countries gave us stuff for free. Isn’t ‘really cheap’ the next-best thing?”” Via How Free Trade Helps the Poor @ Acton PowerBlog.

TPP

“Just because something is called free trade doesn’t mean it actually is free trade. My bet, and the author alludes to this, is that the agreement will be full of crony nooks and crannies. Nooks and crannies some would prefer the public not learn about.” Via I’ve Read Obama’s Secret Trade Deal. Elizabeth Warren Is…