Trump's tariff belief "the equivalent of a belief in witches or a belief that the earth is a flat disc balanced atop a tower of turtles."
"I realise that Trump true believers are unpersuadable; this outcome is assured by their blind faith in Trump. But for those of you who still listen to reason and facts, all you need do is to reflect on the fact that Trump believes that U.S. trade deficits in goods with individual countries - such as the U.S. trade deficit with Switzerland - is an economically meaningful concept that reveals that we Americans are 'losing' in our trade with Switzerland. This belief is the equivalent of a belief in witches or a belief that the earth is a flat disc balanced atop a tower of turtles."
~ economist Don Boudreaux
4 comments:
Yeah, the Trade Deficit thing is a crock. I'm surprised that some journalist hasn't yet pointed out to him that - for example - Cambodia has a trade surplus with the USA because while it can sell basic commodities to them it's too poor to buy very much from them.
Even so the new trade agreement with the EU should work for the Euros, according to Free Trade theory.
The EU has wiped tariffs on goods imported from the US, which will relieve EU citizens from paying the tax on consumers. Average working class Europeans will now be able to buy all kinds of things from the US that they previously couldn't afford.
And of course if those working class Euros lose their jobs because of importing all that zero-tariff American stuff, that will allow those displaced workers the opportunity to move to better, higher-paying jobs.
All in all Trump has probably done the EU a big favour. Now, if they want to compete, they'll have to free themselves up from sclerotic regulations, bloated welfare states (including corporate welfare), poor education systems and the rest.
I don't know why they're all so gloomy and thinking they got their butts kicked.
Well, the bullshit around trade deficits pisses me off. I'd love it if some reporter would point out to Trump that - for example, Cambodia - has a trade surplus with the US because they're too fucking poor to buy US shit.
Having said that I've been annoyed at all the whinging and moaning from the MSM sources about how the EU "caved" to Trump.
Put it this way, the EU is eliminating tariffs on goods imported from the US, so this will relieve citizens in the EU of a tax on consumers.
With tariffs lifted on goods imported from the US your average working class Euro stiff will now be able to buy all kinds of things they could not otherwise afford.
Finally, those same working class Euros losing their jobs to because of all those tariff-zero American good will allow those displaced workers to take advantage of the creation of better jobs, moving up the scale from manufacturing work.
The Euros don't realise it but Trump has probably done them a huge favour. I look forward to seeing the EU catch up to US GDP and such over the next few years as they de-regulate, slash their welfare systems to encourage risk taking and improve their education systems to take advantage of this opportunity.
Tom, how are all the working class Europeans going to "move up the scale from manufacturing work"? For example, Germany represents around 25% of the EU economy. The number of jobs has been shrinking there for close to a half decade. Where are they going to find work?
Crickets.........
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