My emeritus Nobel-laureate colleague, Vernon Smith, sent the following email to me in response to this post. I share Vernon’s note with his kind permission.
Don,
Trump, like all businesspersons turned political, wants government favors, that is Mercantilism which is as bad today as when Adam Smith railed against such cozy relationships.
Same for labor unions.
Both policies are anti-wealth creators.
He believes imports are bad for America, but wants foreigners to invest in America. But they can get the $s necessary for this investment from their earnings on Americans’ purchases of imports.
He does not understand trade, nor how the West grew rich. Neither does the average worker who bites the hand that nourishes them.
Vernon
