Although politicians, pundits, and the media claim that a trade deficit is harmful to a country, the reality is much different. In a free economy, individuals interact with each other in mutually-beneficial exchanges. As Murray Rothbard noted, free exchanges do not produce winners and losers.
As egg prices rise, the usual progressive suspects claim it is due to monopoly power by egg producers, calling for government intervention. However, the real reason is government intervention itself.
Profits aren’t immoral—they’re necessary. Just as organisms need a net energy surplus to live, societies need profits to sustain themselves.
The welfare state is supposed to signal the existence of the “compassionate” society that provides care for all. However, this “compassion” has resulted in the proliferation of social pathologies that undermine civilization itself.
Keynesians claim that through the “multiplier,” a country can spend itself into prosperity. All that is needed is for government to tax, borrow, print money and spend, and prosperity will follow. Austrian Economists, however, are not fooled by such myths.
Jamaica has emerged as a prime destination for investment under the leadership of Prime Minister Andrew Holness. The country has fostered a business-friendly environment.
One of the arguments given in favor of tariffs is that they will enable domestic manufacturers to better compete with producers abroad. While people may believe that to be true, the problem is that tariffs don't create a good foundation for capital development.
It is not just the future generation who bears the burden of increased government debt, but the current generation who pay the interest to the banks and corporations through higher taxes and higher price inflation.
Thanks to President Trump‘s brinkmanship, tariffs are in the headlines. However, while the public knows about tariffs, few people actually understand them, their history, and how they work.
The only beneficiaries of the increase in tariffs are the government and a few companies that benefit from limited competition while everyone else is worse off.
