Protectionism and Free Trade

Bob starts a 3-part series explaining areas where his views have changed. In this episode, he covers trade deficits, justice vs. mercy, the 2000 election, WMDs in Iraq, and Arrow’s Theorem.

The impossibility theorem, developed by Nobel-winning economist Robert Mundell, paints a false tradeoff between the free movement of capital, fixed exchange rates, and effective monetary policy. Under a gold standard, all three are a possibility.

In a normal world, American spending would have sharply declined during the past year. But a flood of newly printed money has juiced spending and imports. 

The problem with the European Union is not that it seeks to integrate Europe's economies. The problem comes from attempts to integrate politics as well. 

The problem with the European Union is not that it seeks to integrate Europe's economies. The problem comes from attempts to integrate politics as well. 

If Punjabi farmers had been portrayed as affluent, the media would view them as greedy entrepreneurs. But leveraging the political capital of perceived powerlessness has allowed them to obscure their true status as rent seekers. 

If Punjabi farmers had been portrayed as affluent, the media would view them as greedy entrepreneurs. But leveraging the political capital of perceived powerlessness has allowed them to obscure their true status as rent seekers. 

Every depression generates a clamor among many groups for special privileges at the expense of the rest of society—and the American depression that struck in 1784–85 was no exception.

Protectionists are always wrong, but they're obviously wrong when it comes to "protecting" US goods from Anglosphere competition. Neither geopolitcal concerns nor fears of capital flight to "cheap labor" apply in this case. 

Our guest today is Terence Kealey, Professor Emeritus of clinical biochemistry at the University of Buckingham in the United Kingdom, and Research Fellow at the Cato Institute.