Monday, May 9, 2016

Trade Economics

The campaign trail always exhibits nonsense economics.  This year is certainly no different.  Perhaps the least understood issue is that of international trade.

Make no mistake about it.  The best trade policy is no trade policy.  We should have zero tariffs on all imported goods and that's that.  This is not even a close issue.

We are not shipping jobs to Mexico or anywhere else.  Companies will always locate in places that are favorable to their economics.  If you can get the same product produced at a lower cost in one location as compared to another location, that product will get produced in the lower cost location.  That is a good thing, not a bad thing.

The answer is not to preserve the horse and buggy.  The answer is to provide free markets and free choice.  America did not become a great nation because of tariff walls.  It became a great nation because of the absence of tariff walls.  If tariffs made sense, the fifty states of the American union would set up tariff walls against each other's products.  Why don't they?  Yes.  Because it would be stupid.

Safe schools with free choice of schooling for parents will easily provide the necessary skills for the next generation to perform well in good jobs, assuming free markets are permitted to provide them.  That's not the case now.  Bureaucrats now decide who can work and where they can work and what they get paid.  The free market needs to make these decisions.

Schools in low income neighborhoods are dangerous places.  Parents in low income neighborhoods, who would like their children to have a chance are denied that by the teachers unions and national education bureaucrats, whose children do not live in low income neighborhoods.  These latter groups don't give a hoot what happens to low income children and neither does Obama, Clinton and the rest.

Parents should have choices about educating their children and the teachers unions and the state and federal bureaucrats that protect these unions should butt out.

Freedom, not bureaucracy, is what creates hope and opportunity for people.  Passing laws that forbid consumers from buying the best products available worldwide at the best prices is just stupid.

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