Joseph G. Allen

Tariffs Hurt Consumers: Trade Deficits Aren’t Bad

"I find myself repeating over and over again the arguments that Smith first made 250 years ago: Trade deficits are not inherently bad; imports are the source of real benefits to consumers; and trade expands the division of labor, raising productivity and living standards. The fixation on bilateral balances and industrial micromanagement, so visible again in today’s tariffs, would have struck Smith as a profound error. The result is fewer choices, higher prices and slower growth — precisely the opposite of the economic security these policies promise." https://t.co/bEqpFQmYhn