Posted on 05/08/2016 5:49:19 AM PDT by TigerLikesRooster
Why a conservative economist says Trump could make America ‘the North Korea of economics’
By Jim Tankersley May 6
In his run for the White House, Donald Trump has threatened to slap tariffs on imports from China, in almost-certain violation of international rules. He has threatened to confiscate money that immigrants from Mexico wire home to their families, in order to force the Mexican government to pay for a border wall. This week, he suggested that, in an economic crisis, the government might repay only some of the money it owes to certain holders of its debt.
Those threats reflect an economic philosophy that is at odds with the traditional economic belief that markets cannot function well outside the rule of law. America has built 200 years of prosperity on a foundation of people agreeing to rules in business transactions, and then sticking to them. Trump appears willing to break those rules in the name of cutting better "deals" for American workers.
Trump's pledge to take extraordinary steps to help left-behind American workers has powered his campaign and made him the presumptive Republican nominee. But he has worried many economists, on the right and the left, who warn that breaking laws and commitments could undermine America's credibility with trading partners, raise its borrowing costs and potentially spark global financial panic.
(Excerpt) Read more at washingtonpost.com ...
Goolsbee the Obama LACKEY is the “conservative”????
What a JOKE.
I appreciate the link, FRiend. No need for sarcasm.
No one said tariffs are bad. But they do have consequences. If the govt taxes something that increases its price. Fine for the govt, not so good for the buyer. Artificially high prices slow down the economy, like friction in the machine.
There are lots of tradeoffs. Lets hope President Trump knows about them when he acts.
We have so many types of taxes at our disposal. Is an income tax, sales tax or a tariff going to most promote constructive behavior in this country? Should we just tax property and go back to property ownership as the determiner of voting rights?
We have a lot to re-engineer or deconstruct to get back to “healthy.”
Breaking the paradigm is a start in the right direction.
Very interesting article. Thank you!
The author has a fascinating outlook - that deals are one sided, somehow different from transactions. I view the economy as the result of billions of free, informed transactions, each being an agreement, each being a deal.
I don’t see how one can define a transaction as “one-sided” if both sides are fully informed and agree to it, however much finagling goes on. The only way to create a “one-sided” transaction is by deceit or force.
I think the real problems are created when force (law) interferes with the free market and distorts prices (taxes, tariffs, minimum wage, rent control, etc.).
To be sure, monopolies can be a problem and need oversight. But, IMHO, many times we define monopolies in inappropriate ways.
As I previously stated, I’m concerned about Mr. Trump’s knowledge in this area relating to economic impact.
I’m also relieved that the author of this article isn’t running for president. :-)
Long overdue! ;-)
Trumpinator...you called me a traitor and said I should be hung. I hope a moderator zots you because you are a true D1ckh3ad.
If the treason charge fits.........
Marx thought free trade would hasten the proletarian revolution. Who on this thread would be stupid enough to argue the same? Oh, wait.
Marx was a loon when it came to creating working Communism(which has never worked) but his methods of subversion were very effective. One should be concerned when our enemies promote something they intend to use to subvert our nation.
Again, who is arguing the same on this thread?
Which is great because so-called free trade is terrible for America and is anything but free.
I heard all of this nonsense when Japan was rising in the 1980s. Protectionists see bogeymen everywhere.
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