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This topic contains 3 replies, has 2 voices, and was last updated by  Emile Woolf 2 weeks, 1 day ago.

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  • #11354

    Going Postal
    Keymaster

    1 – Reminder: People (Not Nations) Trade

    Sir James Dyson has recently entered a plea for the UK to focus on the world’s fastest-growing markets, noting that the UK doesn’t need to be a member of the EU’s single market in order to trade with countries in the EU.

    In 2017 the USA, as an outsider, conducted a third of a trillion euros of trade with EU countries without having to accept the jurisdiction of the European Court of Justice, freedom of movement, the need to pay billions in annual subventions or a host of regulatory stipulations.

    The Mythology Behind Balancing Imports and Exports

  • #11355

    Emile Woolf
    Participant

    I am waiting for comments to this forum – to which I shall be happy to reply
    Emile

    • #11356

      Going Postal
      Keymaster

      ColTPride

      People quote Adam Smith, David Ricardo, Frederic Bastiat, (“It makes no more sense to be protectionist because other countries have tariffs than it would to block up our harbours because other countries have rocky coasts.”) or Krugman and expect me to be persuaded. I am not. Nor should you be.

      When factories are closed in one country and the jobs, plant , capital and expertise are moved to another, and, the goods then manufactured there are exported back to the former country

      AND that “trade” is not finance by exports from the former country to the latter but the ensuing deficits are finance by capital flows and this goes on for year after year with no end in site,

      it is not classical trade – it is Labour Arbitrage.

      And those who argue for this then compound it by arguing for unlimited unskilled immigration but only into the countries where the factories have been closed.

      So one country accumulates money at the expense of another, and, money is power. As Mark Steyn put it “when money drains, power drains”.

      Thank god with have “an orange buffoon” in the White House who can see this and is intent on ensuring that it does not continue. Call him all that you want but he actually cares when his fellow Americans who used to work in those closed factories have their jobs and pride taken from them and end up as another death in the opioid crisis.

  • #11357

    Emile Woolf
    Participant

    Your second paragraph illustrates the classical principle of competitive advantage. International trade depends on competitive advantage. The alternative is either protection or monopoly, both of which harm citizens. Does Trump not recognise the huge cost to American consumers of protective import tariffs? Obviously not. But I’m sure that you recognise it!
    Emile

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