Saturday, March 03, 2018

Trump's autarky (really ex-Bannon's): tariffs and trade wars

Donald Trump has dived into protectionism and threatened to expand it into a trade war.
The Wall Street Journal today in an op-ed (“A Lovely Little Trade War:, explains “autarky” and belittles Trump’s idea “we win, you lose”, because trade isn’t a zero-sum game. Yup, in Trumpland, when you create winners you also create losers and have to take care of them.

Trump is now threatening to tariff European vehicles.

A Facebook friend has unearthed papers saying that tariffs could have caused the Great Depression.
Blomberg points out that the Trump tariffs would affect only 2% of imports but can have a much bigger economic impact.

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