Protectionism and Other Forms of Theft
There are some other problems with the Republican candidates besides the fact that they are, with the exception of Ron Paul, all pro-war. How about economics? For instance, Duncan Hunter, who is featured in the May 14 issue of The New American because he is against NAFTA and CAFTA, said in the most recent Republican debate that "China is cheating on trade." What he means by this is that he is a protectionist who fails to understand basic economics. I think Mr. Hunter needs to read Robert Murphy. And then there is Mike Huckabee, who supports the misnamed FairTax, which I have critiqued here.
Comments (4)
David White
In a world of competing -- i.e., race-to-the-bottom -- fiat currencies, "free trade" is a farce. And when the massive credit Ponzi that this 36-year-old flight from reality has spawned finally collapses, we will have hell to pay.
In the meantime, the inflation that has been exported to China -- as a result of the dollar's entirely flukish status as the world's reserve currency -- keeps the US economy afloat, the only question being when China decides that vendor-financing its US exports is no longer worth it and inflation hits our shores like a tsumami.
As for protectionism, 300 million Americans could -- were they rid of Rome-on-the-Potomac and free to live their lives under libertarians principles -- seal themselves off from the rest of the world and let it play catch-up as they prospered as never before.
Thus (and only thus) could protectionism be true protection.
Published: May 16, 2007 5:28 PM
Brent
300 million Americans freely trading amonst each other? LOL
Published: May 17, 2007 1:26 AM
Brent
300 million Americans freely trading amongst each other? LOL
Published: May 17, 2007 1:26 AM
Björn Lundahl
Imports are prerequisites for exports.
If not anyone wants to import, there wouldn’t be any demand to exchange a national currency for example dollars for yuan, yen, euros, pounds etc and no exporter would be able to exchange their takings of yuan, yen, euros, pounds etc for dollars.
Exports are prerequisites for imports.
If not anyone wants to export, there wouldn’t be any supply of yuan, yen, euros, pounds etc in exchange for dollars and not anyone who wants to import would be able to buy yuan, yen, euros, pounds etc for dollars.
Imports and exports are intertwined.
The Chinese, for example, are therefore deluding themselves by making themselves poorer when they intervene in the currency market for the purpose to subsidize exports by depreciating the value of the yuan against the dollar. Those extra dollars takings are not in a free market demanded by the Chinese. The Americans on the other hand should not complain as it is they who are subsidized by the Chinese.
Poor people are subsidizing rich people. I know that the Chinese are not communists any more, but is this not going too far?
Björn Lundahl
Published: May 18, 2007 10:32 AM