Here’s a letter to the Wall Street Journal.
Editor:
Mark Duffy asserts that America has been harmed by Canadian aluminum subsidies – a harm that allegedly justifies higher U.S. tariffs on aluminum (Letters, July 28). But although as common as pigeons in Central Park, arguments that foreign subsidies justify domestic protection crumble upon inspection.
It’s true that subsidized imports reduce outputs and employment in the U.S. industries that compete with these imports, but this effect helps, not hurts, the U.S. economy. Capital, workers, and resources released from these domestic industries become available to increase the production and employment of other domestic industries. America gets more output and jobs from these expanded industries, while foreigners pick up part of our bill for the consumption of the subsidized imports.
Given the Trump administration’s determination to “Put America First!,” it should – instead of ungratefully taxing Americans’ receipt of these Canadian gifts – send notes to our northern neighbors thanking them for joining in Mr. Trump’s effort to Make America Great Again.
Sincerely,
Donald J. Boudreaux
Professor of Economics
and
Martha and Nelson Getchell Chair for the Study of Free Market Capitalism at the Mercatus Center
George Mason University
Fairfax, VA 22030
