Vienna Woods Law & Economics – Blog focused on issues in law, economics, and public policy.
Description: Blogging by Theodore A. Gebhard
[Note: This post originally appeared in American Thinker magazine on May, 27, 2016.]
The irrefutable evidence of economic history over several centuries is that the wealth of societies (later nation states) significantly increases as trade expands. Scarce resources are conserved by being able to obtain goods from others who can produce those goods more cheaply. The conserved resources then become available to be redeployed to other productive activities, thus adding to the total stock and diversity of a society’s wealth.
Notwithstanding this overwhelming evidence, however, expansion of trade is often singled out as detrimental to a society’s well-being. Presumptive Republican presidential nominee, Donald Trump, for example, has made the alleged “costs” of trade a centerpiece of his campaign. Mr. Trump cites current account deficits with China and Mexico as evidence that those nations are taking advantage of the U.S. and stealing U.S. jobs. He says that, if elected, he will use his business skills to renegotiate existing
Vienna Woods Law & Economics – Blog focused on issues in law, economics, and public policy.