Free trade (more precisely less restrictive trade policies) is not a crack pot idea. The vast majority of economists think that policies that encourage more trade are preferred. Trade involves voluntary transactions. Both parties benefit; otherwise no trade would occur.
Tariffs and other restrictive trade practices will only raise prices here. The trade deficit has been growing for many years. However, we have had incredible amounts of economic growth during the same period. Along with strong economic growth, millions of high paying jobs have been created through the 80s, 90s, and now 2000s.
The American worker needs lower government spending, less regulation, lower taxes, and fewer restrictions on energy exploration and development. Taxes, regulation, and energy development restrictions will price the American worker out of the world economy. Entitlement spending at the federal level and runaway pensions at the state and local level threaten to undermine our economy. The trade deficit does not threaten our future economy. Government policies are making our economy less competitive.
We have free markets here but there is also government regulation of these markets. For example this week the Feds will make a major change in our labor markets by allowing Mexican truckers to drive here. This also changes our trucking markets by allowing in new competitors from Mexico
History is full of currency collapses and drastic devaluations. We are bound to repeat this due to our huge foreign borrowings. This day of reckoning has been delayed due the USD status as reserve currency and our military power. If it were up to me, tariffs, drilling for Alaskan oil, exploiting our coal reserves, making manufacturing easier here with less government hassles, and other measures would be instituted to close our trade deficits. I would not allow the trade deficit to just run its course
I’ll also add that the United States had tariffs for many years of our existence. Prior to the income tax they were a main source of Federal revenues. So to say our import-export markets are sacrosanct, must never be regulated or taxed, is absurd. I would re-institute very precise tariffs and cut Federal taxes by whatever amount of tariffs are collected.