Categories
free trade & free markets international affairs

The Real Free Trade Problem?

Trump Derangement Syndrome is not a mysterious disease. He triggers people for reasons. Still, there is no excuse for smart folks to fool themselves into misunderstanding his sometimes genius.

Take the subject of yesterday’s Common Sense, trade protectionism. Trump is plain speaking on this issue, and it is all-​too-​obvious that Trump harbors old autarkist notions of trade: it’s as if he resents having to pay foreigners for anything

His apparent resentment of benefiting others — alien others — is what’s so ultra-​right-​wingéd about him, and why leftists instinctively hate him.

And it’s why many free trade economists regard him as a complete and utter moron. His basic attitude appears to be that trade that benefits The Other must hurt us, and that’s just plain wrong.

But sometimes traders do aim to harm us.

This is where Trump’s attacks on trade with China make more sense. For when we deal with China, we don’t just make Chinese workers and businesspeople stronger, we make the Chinese State stronger — most particularly, the Chinese Communist Party. And that organization has set itself as the enemy not only of the United States but also of all competing states … and the very idea of individual freedom.

Free trade is great, because voluntary trades make both sides better off, and all sides are positively advantaged even when many participants are out-​competed and required to re-​tool, re-​group, and re-invent.

Yet, free trade with those who seek to destroy you is quite problematic. And this is not often figured into the elaborate reasoning offered by free-​market advocates.

Trump instinctively knows this, looking warily at those who would use the strength they gain from their people’s trades to transform market power into military power. There exist free traders who think this cannot happen. They are wrong. 

The point is to recognize threats and defend ourselves while also embracing the mutual benefits of trade whenever possible.

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with Flux and Firefly

See all recent commentary
(simplified and organized)

See recent popular posts

Categories
free trade & free markets international affairs

The 51st State?!?!

“What I’d like to see?” confessed the president. “Canada become our 51st state.”

Why?

“We give them military protection,” he offered. 

Then things got weird.

“We don’t need them to build our cars,” Donald Trump added. “We don’t need their lumber. We don’t need them for anything.”

Shocking? Yes. But not just for the disrespect shown to our northern neighbors. 

What’s most shocking is our president’s ignorance of economics. While we don’t “need” Canada for any of the things Trump mentioned, we’re better off trading with Canada than not. The sending of “billions of dollars” up north is neither charity nor waste; the gains both sides make are apparent in the voluntary trades themselves. 

It’s as if he thinks if “we” must pay anyone, it should be to ourselves, that is, to our fellow countrymen.

Behind this is that old crank notion, protectionism: “we have big deficits with Canada, like we have with all countries.”

Now, it’s true that Canadians send more raw materials to the U.S. than we send to them, and that we send them more dollars than they send us theirs: that’s what “trade deficit” means. 

But how is this bad for us? 

Trump doesn’t explain. “I look at some of the deals made and I say, ‘Who the hell made these deals?’ They’re so bad.”

Mr. Trump identifies no specific trade rules or agreement; he doesn’t say which are unfair, or why; nor does he say who made them. But the trades that pile up to that overall deficit, each was made by Americans and Canadians who thought the deal best for them.

Trump’s seemingly goofy idea of adding Canadian provinces to the U.S. as new states would have one great benefit: more trades with these good people than ever. This belies Trump’s far, far more troublesome notion that we need nothing from Canada. We need everything. As Canadians do.

That is, freedom.

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with Flux and Firefly

See all recent commentary
(simplified and organized)

See recent popular posts

Categories
free trade & free markets regulation too much government

Unplugging the EV Mandate

Under the Biden administration, gas-​powered vehicles were on a government-​impelled road to decline.

In March 2024, the EPA finalized Biden’s “crackdown on gas cars” by issuing absurdly stringent emission standards. The idea was to advance the administration’s “climate agenda” by sending gas-​powered modes of transportation to the junkyard.

Leaders of the petroleum industry were among those who saw that the scheme would “make new gas-​powered vehicles unavailable or prohibitively expensive for most Americans.” The policy would “feel and function like a ban.”

This was just one of many examples of Biden-​oppression pushing American voters who value at least their own freedom into the Trump camp.

Electric vehicles have pluses and minuses. In past columns, I’ve expressed much enthusiasm for the technology, but recognized that it must develop naturally, in a free market, rather than unnaturally, out of ideological hope and fear-​ridden “need,” forced by government regulation and subsidy.

As James Roth has noted over at StoptheCCP​.org, we’ve had a century and a half to fine-​tune gas-​powered vehicles, a mature technology that is “beloved by the public.” Why not let electric and gas cars compete fair and square in the market? And why give an artificial boost to totalitarian China’s heavily subsidized and promoted EV industry by crippling the gas-​car industry here at home?

President Trump has heard the cry of those who prefer to step on the gas.

Section 2(e) of his sweeping executive order on “Unleashing American Energy” states that it is the policy of the United States to “eliminate the electric vehicle mandate … by removing regulatory barriers to motor vehicle access” and other thumb-​on-​scale interventions in the market.

Is the future of gas cars going to be great again?

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with Flux and Firefly

See all recent commentary
(simplified and organized)

See recent popular posts

Categories
First Amendment rights free trade & free markets national politics & policies

Politically Exposed Persecution

National socialism, as operated by the actual Nazis, did not seize all the major industries and run them as collectives or state-​owned businesses. The Nazis applied party control directly to big business, as a political-​regulatory matter. 

How different is what woke Democrats have been doing to business today, here in America, using multiple agencies of the United States federal government’s regulatory apparatus?

Marc Andreessen, investor, innovator, business genius, and early Internet pioneer, explained how in a discussion on the Joe Rogan Experience, last month.

Start with debanking, which the regulators can tell banks to do to “politically exposed persons.” Mr. Andreessen told Joe about a friend who was debanked, apparently because his job title was involved in the business use of crypto-currency. 

And debanking is exactly what you think it is: de-​platformed from the financial system.

Don’t worry, statist: you are not “politically exposed.” This only applies to critics of our quasi-​fascist system.

This commercial censorship is run pretty much like censorship on the social media companies after 2016, by soft pressure … the “raw power” of a “privatized sanctions regime.” Government functionaries notify a bank that a person or business is “politically exposed,” and the bank — fearing getting on the bad side of regulators — kicks the customer off the rolls. 

Politicians can haughtily state that it was the bank that did it. Banks, after all, are not obliged to serve everyone! They can pick and choose their customers.

Besides, there is no First Amendment right to have a bank account.

This is how woke bureaucrats can rule like Nazis.

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with Flux and Firefly

See all recent commentary
(simplified and organized)

See recent popular posts

Categories
free trade & free markets judiciary

Musk’s Bête Noire

Should a judge decide how much Elon Musk can be paid?

Well, when the job that Musk is doing is not a government job and a company’s internal process of determining the compensation is voluntary and aboveboard … no.

But according to a Delaware judge, Chancellor Kathaleen McCormic, who last January rescinded Tesla’s compensation package then worth $56 billion, now worth more than $100 billion, Musk is not entitled to this compensation. And she has just affirmed her ruling.

Musk says that “shareholders should control company votes, not judges.”

Tesla says: “The ruling is wrong, and we’re going to appeal.”

The appeal could take a year or more.

There’s nothing in the U.S. Constitution authorizing judges to run private companies or decide how much their most valuable personnel may be paid. The judge has no constitutional warrant. And no moral warrant. 

Not her business.

Ignoring the enormous success of Tesla, McCormic is simply deciding that Musk’s pay is way too much with respect to some arbitrary personal criterion that is irrelevant to the decisions that companies must make to attract and keep their greatest entrepreneurial talents, the ones who do the most to make it all go.

Still, maybe we should give the judge a break — I mean, just a tad?

Remember, it was Chancellor McCormic who forced Musk to go through with his Twitter purchase — which turned out to be the most consequentially favorable free-​speech/​-​free-​press event of our time. 

Sure, then too she was grinding a personal or ideological animus against the magnate.

But credit where credit’s due!

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with …

See all recent commentary
(simplified and organized)

See recent popular posts

Categories
free trade & free markets regulation tax policy

Destroying Dane Farming

In February, Denmark’s farmers were worried “that plans to levy a carbon emission tax on farming” in the name of global weather control “would force them to reduce production and close farms.”

In the same month, farmers across Europe protested against assaults on their livelihood.

Meanwhile, a report by a government commission concluded that the carbon tax could cause Denmark’s agricultural production to decline by as much as a fifth. The central planners made clear that this was a price they were willing to pay in order to indulge their ideological-​meteorological fantasy.

And also, not incidentally, in order to collect more tax dollars.

But the concern and the estimates of the severity of the blow on farmers — to be penalized for providing food, a requirement of survival — availed naught.

The carbon emissions tax is being enacted and will take effect in 2030. The levy will initially be something like $96 per cow, rising to $241 per cow in 2035.

Insane. But cows produce methane “through their burps and manure,” CNN reports. So what can tyrants do but tax farmers into oblivion?

The fantasists may claim success no matter what global climate turns out to be in years to come. Or they may claim that their measures haven’t yet fixed the global climate only because the rest of the world’s countries haven’t yet followed suit and appropriately penalized their farmers for farming.

Only when civilization is fully destroyed will we be able “save” it.

This is Common Sense. I’m Paul Jacob.


PDF for printing

Illustration created with Midjourney and Firefly

See all recent commentary
(simplified and organized)

See recent popular posts