I appreciate your view. But it has some flaws in it. the US dollar is used as the international currency. Several other countries use it as their domestic means of currencies. Virtually every country uses it for trading. So, the old theories that dollars that flow out will flow back don't necessarilly apply.
I would only advise tariffs for excessively mercantilist countries like china. I wouldn't even trigger such tariffs unless the imbalance was worse than 2 to 1. Then I'd lift them when the flow of trade is at least reasonable in both directions. I don't advise any tariffs at all on imports from nations that readily buy even about as much from us as we buy from them.
In other words the average tariffs on imports under such a system after mercantilist nations get used to it are probably lower than what china charges now. So if we charge what they charge we'll have a depression? then how does the free trade ideology explain that they haven't had a depression for the high tariffs in last 10 years they charge? Their economy grows at 13% a year or so.
I appreciate your view. But it has some flaws in it. the US dollar is used as the international currency. Several other countries use it as their domestic means of currencies. Virtually every country uses it for trading. So, the old theories that dollars that flow out will flow back don't necessarilly apply. Countries like Ecuador that have adopted the USD are so insignificant in the statistics of world trade that they'd barely make a dent on anything.
I would only advise tariffs for excessively mercantilist countries like china.
A tariff is a tax on imports. Like all taxes, it is paid by American citizens. if you impose a tariff, it will hurt some Chinese and a lot of Americans. Please tell me how raising taxes on trade will improve my economic well being.
So if we charge what they charge we'll have a depression?
Either a depression or an unnecessary slowdown. Study the effect of the Smoot-Hawley bill on the prolongement of the Depression.