Wednesday, May 4, 2016

Now That Donald Trump is the Presumptive Republican Presidential Nominee...

...there is going to be a lot of insane talk about trade  and so-called trade battles with China, Japan, Mexico, etc.

Walter Block, a couple of years back, brilliantly exposed the fallacies of the anti-free traders.

Find the time to watch this lecture. The arguments he presents here can be used to explain to those who fall for Donald Trump confusion about trade.



  1. LOL at "a couple years back"!

  2. I understand tariffs are a tax on citizens & cheaper imports may increase jobs for downstream users or buyers of such products even if closing businesses & laying off workers producing the same goods, i.e. a net gain.

    That said, Mexico slapped a tariff on ~100 US products to force us to allow Mexican trucks to enter the US for deliveries. We finally agreed a few years later & Mexico dropped the tariffs. So for some years Mexican citizens paid “taxes” on ~100 US goods, but (presumably) thereafter for decades or more, the taxes on the Mexican citizens are lifted AND Mexican truckers, business & labor profit. FOR DECADES at the cost of a few years.

    OK, I'm not an economists. Why was this not a good idea for Mexico to do?* If Trump threatens or does slap a tariff on Chinese goods for a while and they drop their tariffs & other restraints (like demanding we build the plants in China, etc) so that we produce more goods (which is one way we pay for stuff we import) & US business & labor increase their production & profits for DECADES, why is this not worth trying?

    *Note: If the argument is NAFTA required us to & it had nothing to do with it, I don't accept that the imposition & dropping the tariffs was coincidental.