(August 9, 2018 at 1:31 pm)Anomalocaris Wrote:(August 9, 2018 at 1:00 pm)alpha male Wrote: Why didn't anyone complain about other countries' tariffs on US goods before Trump started his?
Seems like Trump Derangement Syndrome.
Because:
1. it is better to export low value added activity abroad than to keep it at home, and if foreign tariffs accelerate that so much the better?
2. Tariffs always distort allocation of domestic resources by shifting available investment and labor from efficient and competitive industrial sectors that should be kept and expanded to inefficient and uncompetitive industries that should be jettisoned. If a foreign nation is willing to abuse its own resource allocation, who are we to complain?
The economy overall is not always worse off if a sector is losing rather than winning. You can only win overall for yourself by not fighting battles with others that’s not worth winning. With trump we instead devote our resources to winning battles that we are better off losing or not fighting.
Clear?
Bu bu her e-mails.
