"Implementing tariffs is like mining or own harbors."
In the video above Donald Trump’s uninformed, economically illiterate, and childlike views on international trade and trade policy are contrasted with Milton Friedman’s informed, economically sophisticated and mature views on trade. Toward the end of the video, Milton Friedman paraphrases what he considers to be the best argument he’s ever heard for free trade, from 19th century American economist and free trade advocate Henry George, who criticized protectionist trade policies in his 1886 book Protection or Free Trade at a time when President Grover Cleveland was pushing for reductions in US tariffs from an average rate of 47% at a time when Britain had tariffs of less than 1% and France of 1.5%.
Protective tariffs are as much applications of force as are blockading squadrons, and their object is the same—to prevent trade. The difference between the two is that blockading squadrons are a means whereby nations seek to prevent their enemies from trading; protective tariffs are a means whereby nations attempt to prevent their own people from trading. What protection teaches us, is to do to ourselves in time of peace what enemies seek to do to us in time of war.
Can there be any greater misuse of language than to apply to commerce terms suggesting strife, and to talk of one nation invading, deluging, overwhelming or inundating another with goods? Goods! what are they but good things—things we are all glad to get? Is it not preposterous to talk of one nation forcing its good things upon another nation? Who individually would wish to be preserved from such invasion? Who would object to being inundated with all the dress goods his wife and daughters could want; deluged with a horse and buggy; overwhelmed with clothing, with groceries, with good cigars, fine pictures, or anything else that has value? And who would take it kindly if any one should assume to protect him by driving off those who wanted to bring him such things?
Bottom Line: To hear the Mercantilist-in-Chief explain international trade in his infantile way and with his “great misuse of language,” China, Japan, and Mexico are currently “deluging, overwhelming, and inundating” Americans with cheap clothing, cars, and smartphones, and US consumers and businesses somehow need his protection from such an “overwhelming foreign invasion” of low-cost, affordable goods with his 25% tariffs/taxes? And to use Henry George’s insight, by advancing his protectionist agenda with tariffs, trade barriers and trade war, Trump is doing to the US during a time of peace what our worst enemies would do to us in time of war, i.e., wage a war on American consumers and businesses who purchase goods produced outside the country. To further paraphrase George, Americans shouldn’t take it kindly that Trump seeks to protect us consumers by driving off, or raising prices on, the “invasion” of foreign goods that help us stretch our paychecks and significantly improve our standard of living.
Link: http://www.aei.org/publication/some-economic-lessons-about-trade-for-donald-trump-from-milton-friedman-and-henry-george/
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the same econ background.
It's hard to decipher which is the worst.
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He's another of those libertarians who treats the "free market" as if it's some entity that operates apart from human foibles, almost perfectly "picking winners and losers." If we can just leave Free Market on its own, Free Market will deliver maximum utility to its people.
It bears note, contrary to what you might hear from these folks, that the great wealth and economic growth of this nation was mostly built in times of higher tariffs, and certainly not in what Milton Friedman would call "free trade."
Complete, BS film flam artist.
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Unless you mean impressively horrible.
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the hell did Milton Friedman in your link say about violation of 301? I can give you more empirical evidences/facts to show Trump is right. For sake of weekend, you just answer me the 301 question. Please be on topic, please be specific. No empty word, no abstract terms, no BS.
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Milton Freedman was right 35 years ago and his opinion is still right today. The answer is No.
Link: https://youtu.be/w3-_r_t7AZU
rather than a heart attack.
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