Mainstream economists have been obsessed with finding “optimal” tax rates, and Nicholas Kaldor‘s 1940 formalization of the “optimal” tariff is no exception. Austrian economists, however, know that there is no such thing as an “optimal” tax, given the harm taxation causes.
The Trump White House has enacted tariffs in the belief that other countries are “cheating” by enacting tariffs against US goods and “manipulating” their currencies. However, with the US dollar being the world's reserve currency, the US has engaged in dollar manipulation through inflation.
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.
Murray Rothbard believed that the right to engage in voluntary exchange has long been understood as a natural right, not just a good, practical idea. Tariffs and other trade barriers violate that right.
Historian Chris Calton joins Ryan McMaken to discuss both the upsides and the downsides of Trump's first 100 days.
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.
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.
Mark Thornton exposes the real threat to our economy—and it’s not what you’ve been told.
Although he has temporarily suspended his threatened tariffs, President Trump‘s demands for “fair trade” make no sense economically speaking. Trump‘s demands of Vietnam alone are beyond head-scratching.
Trump economic adviser Peter Navarro has condemned multi-billion-dollar investments by BMW in South Carolina as “bad for our economics.” The comments reflect a greater ignorance of capital goods by so-called economic experts.
