Tag: Bastiat

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folly free trade & free markets meme moral hazard national politics & policies

Trump’s Dangerous Idea

Donald Trump, trade, protectionism, Donald Trump, war, borders, Bastiat

A lot of people were impressed by the reasonableness of Donald Trump’s foreign policy speech yesterday . . . despite the usual hyperbolic promises of “best” and “great” and “beautifully.”

Its general tenor? Refreshing. Rejecting post-Cold War foreign policy for a return to “national interest” and “America first”? Long overdue. Like Trump, I think we should eschew nation building.

But still there is that one big problem: Trump is a mercantilist. He believes in protectionism. He thinks that trade has to be “fair” in order to benefit both participants. He thinks NAFTA and similar trade agreements (which generally promoted trade while still reserving a lot of room for government futzing about) are what hurt American industry. Trump is always blaming the “bad deals” made with Mexico and China, rather than placing the blame where it squarely belongs, on

  • America’s world-high corporate income tax, and
  • chaos of regulatory excess, and
  • impenetrable tax code.

But protectionism makes sense to a lot of people. They are incredulous when they hear the (well-established) idea that free trade — even unilateral free trade — is a benefit to the people who live under it.

Surely, they snort, when you target aid or protection to some industries, you are doing good, right?

Wrong. Oh, yeah, of course protectionism protects the chosen few, the advantaged. That’s what it obviously does. But it doesn’t protect the general interest – consumers pay more and producers allocate resources to less valued uses.

You have to look beyond the obvious (“the seen”) to get the full picture (“the unseen”).

Trump’s at his most dangerous right here — forget his loose talk — by continuing to pretend that protectionism helps America.

We cannot afford another Smoot-Hawley.

This is Common Sense. I’m Paul Jacob.

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Donald Trump, trade, protectionism, Donald Trump, war, borders, Bastiat

 

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Categories
ideological culture

Tea Readers

According to a New York Times article by Kate Zernike, the “Movement of the Moment Looks to Long-Ago Texts.” A strange way of saying that Tea Party folks are reading, learning, and studying ideas older than those of, say, Paul Krugman.

Tea Partiers are reading classics . . . but ones not recognized as such by the New York Times:

  • Frédéric Bastiat, The Law
  • F. A. Hayek, The Road to Serfdom
  • Saul D. Alinsky, Rules for Radicals

Huh? That third book serves as an oddity on the list. It’s a handbook on street-level ways to effect political change. The left’s loved it for years. Now it’s in the hands of people with scant interest in mass expropriation or heavy, vindictive regulation, or a vast, tax-funded gimme-gimme state.

The article cites the “Austrian School of Economics” — a brand of economics that includes many of the most important free-market thinkers — as an important force, but merely mentions its 20th century leader, Ludwig von Mises, as if a duty. Bastiat, a French economist who died before the school was founded, is lumped in with Mises and Hayek, perhaps because he’s so radically anti-taxation that the Times hopes by mentioning his ideas over and over, readers might dismiss him as a nut.

That could backfire. Some of the Times’s smarter readers might become curious, reading Bastiat and Mises and Hayek with the notion of learning something.

Maybe they’ll even read the Constitution.

Wow. What a revolutionary thought.

This is Common Sense. I’m Paul Jacob.