Dan Griswold of the Cato Institute is eloquent and unusually well-informed on matters of trade. Here’s Dan’s most recent essay, appearing at American.com. I especially like Dan’s understanding that protectionists are Grinchly:
Extrapolating from trade numbers through October 2006, Americans bought
an estimated $286 billion worth of goods “Made in China” in the year
just ended. More than three-quarters of those goods are consumer
products that make our lives better everyday at home and the
office—just the kind of stuff that made its way under our Christmas
trees this holiday season. When congressional leaders talk about
getting tough with China by imposing tariffs on all those imports, it
must bring a twisted smile to the cold-hearted Grinch.
The larger message is that, in the long-run, trade is a win-win not only for consumers "here" and producers "there," but for everyone here (and there) — a message conveyed beautifully in Russ Roberts’s The Choice (3rd ed., 2006).
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"…in the long-run, trade is a win-win not only for consumers "here" and producers "there," but for everyone here (and there)…"
Just curious, how long is the "long run?"
Stated as fact. Looks like hypothesis.
I'm running a trade deficit with the local Ralph's (Kroger) grocery store to the tune of $400/month. So this year, I am going to get a cow for my condo and raise chickens on the back porch. Next year, I'll tackle the PetsMart trade deficit. By then, I won't be so squeemish about slaughtering lamb and grinding it up into kibbles.
Save the Rustbelt,
Good point, but I'd say more like theory than hypothesis. The hypothesis has been tested repeatedly for thousands of years. There's a reason why the wealthiest cities have always been those on the busiest trade routes.
But did Adam Smith discuss the situation where you swap chits for hard assets??
that is not trade
Is there a logical free trade response to the recent arrests of catholics in China and the expropriation of BP's and Shell's property in Russia.
Kent,
I'll give it a shot.
Catholics in China; Who cares.
Expropriation in Russia; Presumeably BP and Shell knew the risks going in.