Category Archives: Trade Policy

Wisconsin during the Trade War

The national trade deficit is larger than when Trump took office. We don’t know for sure the gap between Wisconsin goods exports and imports. We do know the gap between exports of goods originating in Wisconsin, and imports with destinations in Wisconsin, as recorded in the Customs data.

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Protectionist High Water Mark?

“… the quick fix, of the “countervailing tariff,” “voluntary” restraints, and the like, will only mean higher prices for consumers in the short run, and greater distress in the long term. “Reciprocity” … notwithstanding, protectionism will only prove a temporary, and costly, palliative for inefficient industries, in a world populated by NICs, MICs and [Advanced Developing Countries].”

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The Trade Balance Today, and Near Future

If we wanted to reduce the trade deficit — let’s say because we wanted to increase aggregate demand and hence employment, rather than some atavistic belief the deficits are bad — then we will probably need to convincingly deal with the pandemic. Remember, the trade deficit (in NIPA terms) is now bigger than it was the day Mr. Trump took office.

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Stop the Uncertainty!

The economic policy uncertainty, that is (With apologies to Susan Powter). Regardless of where you are on the econo-political spectrum, you should want economic policy uncertainty to be reduced. Remember all those conservative voices in the post-Global Financial Crisis saying policy uncertainty was slowing the economic recovery? Well, today is an opportunity to return considered, coherent, economic policymaking and trade negotiations.

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