On Saturday, President Donald Trump traveled to Melbourne, Florida, to give a campaign speech to a crowd of cheering supporters.
He dropped a few hints about his developing economic plans. They are far from anything a free market economist would recommend.
Most concerning, he said:
You want a health care system and by the way, we are going to be submitting in a couple of weeks a great healthcare plan that's going to take the place of the disaster known as Obamacare.
It will be repealed and replaced."Replaced" suggests that Trump is going to keep government involved in the healthcare insurance sector. This, of course, is not free market. There is no reason for government to be in the healthcare insurance sector any more than it needs to be in the auto or housing insurance sector.
He again displayed his economic ignorance of basic economics, specifically comparative advantage, when he said:
[W]e believe in two simple rules. Buy American and hire American. We believe it.He also indicated he wants to spend a massive amount of government money on infrastructure:
We need members of both parties to join hands and work with us to pass a $1 trillion infrastructure plan to build new roads and bridges and airports and tunnels and highways and railways all across our great nation.There are two problems with this. First, as David Stockman has pointed out it is a myth that infrastructure in America is crumbling. Second, as Walter Block and Brad Edmonds have demonstrated, there is no need for government to be involved in infrastructure building.
He also indicated that a tax of 35% would be placed on any goods coming into the country that were once made by American workers but where the jobs were transported overseas:
You want...Millions of new jobs and more product stamped with those beautiful, beautiful words, “Made in the USA.” You want to make it easy for companies to do business in America. And harder for companies to leave. We don't want companies saying, "everybody is fired. We're moving to another country. We're going to make the product. Sell it across the border and isn't that wonderful." Not going happen anymore.Just another example of Trump's ignorance of the basic economic principle of comparative advantage.
We're going to have strong borders and when they want to sell that product back across our border, they're going to pay a 35% tax and you know what, they're never going to leave. They will never, ever leave.
Bottom line: We have in the current United States president a person who reflects the basic economic ignorance of the masses. His policies will suffocate the U.S. economy and lower the standard of living for all of us.