Tariffs are more than a free market than free trade

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The writer writes the concept of chief economist, chief economist and American newsletter at the American COMPASS

The most recent US-China Trade Détente’s noteworthy feature is a global tariff for the global tariff for the global tariff. The president’s overall, but the unique protest against the ongoing tariffs is that the loads of the loads in so-called goods are self-defeating. Put the tariff in the steel and the local steel master can benefit, but more than steel will suffer from the manufacturer. The farmer, the tariffs of entrances reduce the “competitiveness” of speeches in the global market. Tariff your iPhone, if you have, but not chips and screws and displays.

This criticism is the same as a generation of free traders: to imagine a global economy that acts as a friendly free market on the board of economists that dramatically flowing sharply into the best use of each other and capital. Productivity rises, prices fall, everyone is blooming.

In the real world, the next, the national champions established by the government in the global market are dominated. Capital flows towards the greatest subsidies and the most exploited labor. Productivity, anyway in the United States, in any case, where the typical factory requires more labor to produce the same output in ten years.

A developing country is nostalgic for a building period in a single building to subsidize his labor in a discount and selling the outcome of more rich customers in other places. The “Export-LED growth” model has created emergency growth in welfare and depended on cheap entrances above everything. The tax tax would be meaningless.

This export management is not open to the United States today. Tariff Steel, Steel Tariff – What if US cars will succeed in the American-made cars in foreign markets. Tariff the chips, do not tariff the chips – in no case will reach the Chinese shelves of American production.

Theoretically elegant model of the “comparative advantage” reviewed, both specialized in each specialized specialized, and began operating as soon as possible. In advanced technological products, the US trade balance has fallen from a dollar surplus of about $ 100 billion in the last year at the end of the Cold War ($ 2025). Taiwan is not the world’s leading chip, because the beaches are with silicone.

Fortunately, the United States is not a small developing country. His internal consumption market has exceeded more than $ 1 billion every year, the largest and import of the world in the world. American producers after years, maybe decades, even decades, and after the winning share in the American market. There does not reduce a tariff competitiveness.

The global tariff awards US producers in the domestic market, in the domestic market, in the house of a source and the degree they produce. External manufacturers specify the production of production to the United States.

Review the construction of leading puree factories in Arizona, the example of the Taiwan’s semiconductor production company (TSMC). 10 percent of global tariff competes in these factories less, because some materials and equipment should be imported. TSMC must pay more than 10 percent more than in Arizonia’s entrances in Taiwan.

What about? Arizona chips will not compete with Taiwanese chips in Global Marketplace. They will be absorbed by our request. Thanks to the global tariff, Arizona plant will begin to look for household entrances.

It would be a more reliable concern that a US market in this way will be sclerotics. Of course, the closure of the trillion dollar trade deficiency means the trillions of dollars in annual imports – it is difficult to automatically. The United States is smaller and soften of large innovations of last century when the market is smaller and more trade volume. Progress was worse in the globalized period when free trade was violated.

The bet on the tariffs can give better results in the free market, even a more limited internal scale, the prevailing global market, dominated by the public-submitted national champions. Perhaps free traders bet at the end of the year and prepare such as a “protection” before making such blasphemes. What they do not know in the modern world is a free trade and at the same time free trade and at the same time, no matter how ideal it is in theory.