Wednesday, February 22, 2017

A Harvard Economist Reacts: "You have got to be kidding me"

Greg Mankiw, Harvard econ professor and the world's greatest living econ textbook hustler, reacts to the news that Trump wants to manipulate trade data:

You have got to be kidding me

If I did not know the source, I might have thought that this report was from The Onion:
The Trump administration is considering changing how U.S. trade deficits are calculated, a move that would make the deficit look larger on paper, the Wall Street Journal reported.  
People involved in the discussions told the Journal that the leading idea is to count “re-exports” — goods that are imported to the U.S., and then exported to a third country unchanged — as imports, but not exports.
The change would inflate the trade deficit number, an important figure in trade negotiations and policy.

3 comments:

  1. why do we even bother to count it? as if it matters

    ReplyDelete
  2. ─ "The change would inflate the trade deficit number, an important figure in trade negotiations and policy." ─

    Just like all other made-up metrics are used by administrations for negotiating trade deals and impose policy. For instance: the "unemployment rate", the "GDP", and so on.

    ReplyDelete

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