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 ...
Most public conservatives are not conservatives.
It’s part of the Long March Through the Institutions — George Will, David Brooks, Charles Krauthammer, etc. They are the face of Conservativism, and they are just not Conservatives.
Isn’t it wonderful what these economic experts have done for us?
We really need more of their wonderful ideas.
Trump:
1. great on immigration
2. great on taxes
3. great with regulation reduction
4. great with foreign policy
5. terrible when it comes to free trade
I’m tired of pundits, economists, and so-called experts whose opinions are continually blabbered but rarely accurate on any subject. Better off talking to the local businessman, or the guys at the restaurant coffee table.
Sounds sensible to me. We've been a give away nation for far too long.
The “conservative” crybabies are going all out it seems.
I REALLY like a lot about Trump and his potential to rip up huge portions of the entrenched system, but this is worrisome.
Markets need stability, and Trump seems to think its ok to make up his own rules (e.g. fining a factory for overseas manufacturing, or slapping on international trade tarrifs).
Deals happen within a rule framework. He needs to understand the impact of changing the rules and the difference between the framework and the deal.
He clearly knows how to hire and trust good people. I hope he’ll hire some good Austrian economists.
You’ve got it with your 5 points. I don’t think Donald gets the connectedness of economics.
He’s right that free trade is good, up to a point, at the point where it really isn’t free, but instead is asymmetric.
An example: Tariffs can be used to protect against predatory activity, such as operating at a loss to steal an industry. China does this in a number of ways, including forced technology transfer. Tariffs would work against that.
But, tariffs also encourage a bit of shirking domestically. It’s a fine line between unfair competition and feather bedding.
Another example: Administration after administration talks about infrastructure investment. However, these investments involve union employment at what is called the prevailing wage (Davis-Bacon). But, that wage is only the prevailing wage if you are in the exclusive union club. So, you have inefficiency and excess payoffs to a political client.
I hope Donald has people advising him how to balance the need for protection of US from the outside versus the taking advantage of US from groups within.
——Trump appears willing to break those rules in the name of cutting better “deals” for American workers.——
Seems to me Trump is going to “change” the rules not “break” them...
How that is lost on the author is telling...
I am a lifelong supporter of free trade. However, what we have in today’s United States is not free trade. Instead we have managed (i.e., rigged) trade. Free trade does not require multi-thousand page agreements and international bureaucracies for monitoring and enforcement. Additionally, free trade does not trump (pun not intended) the constitutional provision for treaty ratification with unconstitutionally ratified “trade deals”.
Free traders don’t care about the American republic or its people. Which is why that evil old bastard Karl Marx was such a big free trader. He knew how it harms the bonds of a nation state.
Gee because what we are doing now is so beneficial to employment, wages and trade deficits. /sarcasm
“free trade uber alles” crowd = Free Traitors™
Should the Dems’s get the WH, I’ll bet Chubby NORK would be invited to a WH dinner; most likely to leave with a doggie bag.
I am beginning to get a sour stomach every time the word conservative is mentioned and I’ve been a conservative all my life. These critters who call themselves conservative have destroyed the meaning of the word.
Free trade does not mean our technology is free. How come no one ever paid us for our manufacturing know how cultivated over 100 years
Austan Goolsbee, a University of Chicago economist who once chaired President Obama's Council of Economic Advisers.
Sounds to me like he is probably not conservative in the least. Also Donald floated something that a businessman would and could employ, but is just not realistic for our government to do. Much ado about nothing, but it once again has the press talking about Donald Trump, and they will all be clamoring to ask him about it. Of course he will just say that he wasn't really serious. He may even hold on to it for awhile sating that it is a consideration.
They still haven't figured out how Donald Trump gets so much free airtime and saves his money for when it is important to be spent. I love it.
Don't expect much sympathy for that view here on FR. I too have voiced the idea that Trump is too smart not to get some some good Austrian Advice on the subject of trade and tariffs. But I'm not certain that he actually will.
When it comes to trade policy in particular there isn't a dimes worth of difference between Trump and Bernie Sanders. That fact is conveniently overlooked here on FR.
Trump is wrong about the value of tariffs. Taxing the American people for buying foreign goods will hurt the economy in the both short run and the long run. Trump had better figure that out or we are going to be in big trouble when he is elected in November (as I expect he will be).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.