As a dyed-in-the-wool, card-carrying classical liberal, it is distressing for me to watch the insanity of the “trade wars” that Trump has unleashed around the world. He is a self-centered, myopic, stupid, uncouth ignoramus. His economic policies are not good for the US, never mind the world.
However, the US is a very rich economy. Although it will be hurt by the perverse tariffs that Trump has imposed on it, the US economy will weather those insults. This too shall pass.
Trump’s tariffs don’t make sense. But what’s worse is that he appears to think that the tariffs are paid for by the exporting countries. I would fail any Econ101 student who doesn’t understand that consumers pay the majority of the tariffs because a tariff is indistinguishable from a sales tax. The incidence of a sales tax is primarily on consumers, not on producers— domestic or foreign. Same goes for tariffs. Continue reading “Trade Wars and Freedom”
Atanu Dey : Life is a Random Draw 