In yesterday’s post I talked about the necessity of freeing the market place in order to spur innovation in the energy sector. I wrote that the great expansion in human prosperity came as a result of the implementation of a set of ideas- ideas that were first enunciated by Adam Smith in his book The Wealth of Nations. Broadly speaking, these principles are free markets, free trade, and free immigration. Trump’s economic “Vision”, released August 8th, and subsequently revised, rejects those principles in favor of a bureaucratic, corporate management of the economy. Hillary’s plan isn’t much better, but more on that some other time.
I should first admit that his tax plan doesn’t look half bad. Reducing taxes, simplifying the tax code, and offering a cocktail of credits is in the right direction. I have my doubts on how serious Trump is on this, though. His tax plan has already undergone several revisions, and he criticized Gov. Scott Walker for not caving to the Unions and raising taxes in Wisconsin. Let’s give him the benefit of the doubt here. If his current plan is the one he pursues, America will be better off for it (providing his other positions don’t do more harm than his tax plan does good).
Trump’s position on trade, however, is frustratingly wrong. Flatly wrong. Lunacy. Trump favors economic protectionism, which is the idea that domestic firms should get preferential treatment in trade negotiations by establishing tariffs and other trade restrictions. Economists argue among themselves a lot, but there are a few things that they almost always agree upon. One of those things is the benefits of free trade. At this stage in the game, with hundreds of years of economic study behind us, making a case for protectionism is madness. It’s a lot like when some quack tries to prove that vaccines cause autism. Utter nonsense. There’s no evidence to suggest that protectionism is economically beneficial. Therefore, I don’t have to demonstrate to you (even though I can) that free trade is the more beneficial policy, because, as Hitchen’s razor points out, what can be asserted without evidence can be dismissed without evidence.
It’s easy for me to get fired up about trade policy, but it’s hard to put name and faces with those who are hurt but the injustice of protectionism. Immigration is a different story. Not only is Trump’s plan to deport millions of people economically and politically unfeasible, it’s also morally abhorrent. These people are coming here because there is work for them to do. They are coming here because they are desperate. We need them, and they need us. What’s often forgotten in thinking about economic issues is the way in which policy affects real people in their everyday lives. I hope that by examining the moral tragedy of deportation, you will come to a deeper conclusion about the great harm of many of Trump’s other economic policies. Our economy is fragile. It may not survive President Trump.