Trump’s Art of the Deal – Trade Wars

Tariffs are a means to an end

by Serban V.C. Enache

China vowed to counter Trump’s announcement of 200 billion dollars worth of tariffs on Chinese exports to the US. If the US loses less than China, that’s called “winning” in Trump’s view. I have written in the past about protectionism, the Historical School, and the role tariffs played as a policy instrument for the development of manufacturers and overall industrialization. However, I always stressed that context is the ultimate factor in decision making. There is no policy to be followed religiously irrespective of circumstance. Continue reading “Trump’s Art of the Deal – Trade Wars”

The Sovereign Nation State

Political vs Cosmopolitical Economy

by Serban V.C. Enache

 

The Globalist View on Statehood

Globalist premise. Most products have developed a complex geography – with parts made in different countries and then assembled somewhere else (goods of trans-national origin). Markets when left alone will allocate resources optimally, thus leading to efficiency and low prices. This, of course, requires the free movement of capital, commodities, and labor. All barriers – like capital controls, trade unions, welfare programs, minimum wage laws, nationalized services etc – will distort prices and lead to malinvestment (waste). Continue reading “The Sovereign Nation State”