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Archive of posts published in the tag: tariffs

Economic Thoughts 2019 02 02

Typically, the economy rebounds sharply after a deep recession like 2008.  The slow growth experienced could have shown a delayed effect unleashed by the Trump election.  The market may have been cheering more for the removal of impediments to growth than it was to the prospect of tax cuts and deregulation.  Emerging from a long period of slow growth may have the same effect as emerging from a deep recession.

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The Longest Bull

The tariffs and the growing debt are threats, but bull markets do not require perfection. They just require sound fundamentals and a dearth of alternative investments.  

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Corruption and Tariffs

“The larger the state is, the more capable it is of picking winners and losers, and the more aggressively it will be lobbied to do so in a particular way. And while it is easily misunderstood in this age of the modern regulatory state, the tariff is perhaps the earliest example of big government — the state intervenes in otherwise free markets to bring about a result it finds socially or economically desirable. “

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The Fatal Conceit of a Trade War

“China targeted pistachios to inflict pain in a region where Republicans are politically vulnerable. About 99% of American pistachios are grown in California’s San Joaquin Valley, home of GOP Reps. David Valadao, Jeff Denham and Devin Nunes.”

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Bastiat and Trump

When Mnuchin claims that the steel and aluminum tariffs will only add a few cents to a beer can or a few dollars to an auto he displays as much ignorance as Nancy Pelosi who contends that a raise of only $20 a week is crumbs.  It is the classic broken window fallacy of Bastiat, the inability to understand and acknowledge what is unseen.

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