This letter of mine appears in today’s New York Times:
To the Editor:
Donald Trump complains that the fees Panama charges for ships to use its canal are a “complete ‘rip-off.’” How mysterious.
Given Mr. Trump’s belief that “the most beautiful word in the dictionary is ‘tariff,’” he should be pleased that these fees are high because they work exactly as protective tariffs do. The higher such fees, the more costly it is to ship cargo, thus reducing the quantity of goods traded globally and diminishing American producers’ exposure to foreign competition.
Love or hate free trade, every American should be dismayed by the president-elect’s deep confusion about it.
Donald J. Boudreaux
Fairfax, Va.The writer is a professor of economics at George Mason University.
And from GMU Econ alum Mark Perry’s Facebook page:
