Antonio Chocho He gave this title a great success to his trilogy of books where he traces the genealogy of those who have affirmed that “private property constitutes a robbery, and trade is its instrument.” And that knowledge allowed him to affirm in December … 2020 a Ricardo F. Colmeneroshortly before dying, that Donald Trump, “to some extent” was more left than Maduro. The obsession of the president of the United States with tariffs is the daughter of the planning trend that links with his life as an urban promoter. The tariff is the excavator with which Trump wants to shape a new country.
The president of the United States uses tariffs in three ways, he explains Josh Lipsky, from Atlantic Council. First, as negotiation tactics. It is what has happened with Mexico, where it has been delaying its entry into force, while with China There has been no possible negotiation. Secondly, he uses them as punishment: he has said that Canada and Mexico They were going to be “punished” for allowing illegal immigration and the passage of fentanyl. (This dimension is the one that has the worst legal lace with one of the legal mechanisms that it has used to approve taxes without going through the legislative, the Eipathe Law of International Emergency Powers, designed for economic crisis). Finally, it uses them as tariffs and their declared objective is that the Treasury enters more and that manufacturers will relocate themselves in their country. There are calculations that indicate that tariffs to Mexico, Canada and China could raise up to 120,000 million a year. They are modest figures that do not reach 0.5% of the United States GDP, but when they extend to the rest of the world as Trump threat, they can be important.
The ease with which Trump embraces protectionism is because, as Adam Smith warned, the willingness to compete is not natural among entrepreneurs. It is more natural to agree with the competitor the distribution of the market, no matter how much Trump Cacaree about his willingness to compete. In addition, he satisfies the voter: 59% of Americans believe that free trade has damaged the country, according to Pew Research.
In 1996, when the rose of Ross Perot took place, Paul Krugman wrote an booklet entitled ‘A Country Is Not A Company’, where he highlighted fundamental issues in which the instinct of an entrepreneur is different from that of an economist. An entrepreneur tends to conceive international trade from his experience. If your company sells more, you will have more income and can invest and create more jobs. This would lead him to defend free trade. However, in trade at planetary level this is not so. As we have verified in the last 30 years, freedom of trade does not create jobs where it seems obvious to be. Trump must have read Krugman. That is why he wants to use tariffs to create jobs in his country. But he does not have something that an economist knows: that others also play. jmuller@abc.es
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