Writing in the Philadelphia Inquirer Texas Tech economist (and GMU Econ PhD) Ben Powell explains clearly that Donald Trump’s proclamations about international trade are evidence of Trump’s economic illiteracy. A slice:
The good news is, America doesn’t need Trump’s trade policies to be “great again.” Trump has frequently claimed, “For free trade to bring prosperity to America, it must also be fair trade.” Again, he’s wrong on both theory and evidence. Bilateral free trade is best. But even pursuing unilateral free trade while a trading partner, like China, doesn’t, still produces net benefits. Again, this is trade economics 101.
When it comes to manufacturing, America is already “great again.” Real manufacturing output in the United States hit a peak in 2008 before the recession. As of late 2014, we had recovered and surpassed that peak. Today, the United States is producing more manufactured output than at any time in U.S. history.
And don’t miss the great Bob Higgs on Trump. Here’s Bob’s conclusion (but do read the whole thing):
With policies of fascist nationalism and a posture of “strong leadership,” Mussolini led Italy to ruin. With policies of fascist nationalism and a posture of “strong leadership,” Peron led Argentina to ruin. With similar policies and posture, will Trump complete the trifecta in the USA?