Sunday, December 4, 2016

The Red Tape Times (article 11): Trump's Economic Ignorance is Astounding

Protectionism is an example of the broken window fallacy. Trump's tariffs will be passed off to consumers, reduce the amount of spendable income they have for other goods and services, and reduce profits, and therefore jobs available, for businesses that produce those goods and services. He is basically saying we can tax our way to prosperity. The burden of Trump's new tax will fall disproportionately on working class people who spend the greatest portion of their income on consumer goods. It would have the same effect that a national sales tax would or any other tax on wages.Tariffs only result in increased rents; wages may rise quantitatively but they will decline in proportion to the distribution of wealth, as they have for the past four decades (dropping from 52% of GDP to 42.5%).

The a priori conclusion is the same. The moral law is cosmopolite; it makes no distinction between country, ethnicity, or race. The right to engage in free exchange of goods and services between countries follows just as necessarily from the law of equal liberty as the right to engage in free exchange of goods and services within the same country. Furthermore, economic rights and social rights are one in the same. They are deducted from the same basic fact of life that each person's freedom of action must be mutually limited by each other person's freedom of action so that all may engage in life sustaining activity, which is necessary for the greatest happiness of all.

I have no faith in this clown. He has no clue how to fund the additional government largess he's proposed and will in all likelihood run up larger deficits than both Obama and Bush. What's even more remarkable is that this buffoon contradicted himself within the same thought without realizing it, saying he would lower taxes while also raising them in other areas. I wouldn't be surprised if there is a deep recession at the end of his term.

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