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Friday, April 06, 2018

The forgotten secrets of free trade justify Trump’s tariffs

https://fabiusmaximus.com/2018/04/06/forgotten-secrets-of-free-trade/

The free flow of capital, jobs, and trade was a pillar of the post-WWII geopolitical regime. Economists and the foreign policy establishment assure us that this globalization is an unqualified good thing – a “win-win” for all parties. That is, of course, absurd. Globalization in its current form has clearly become problematic for America. It has weakened us in important ways during the past 3 decades. Especially since the decision in 2001 to admit China to the World Trade Organization.
Fast forward to the present. For four years we have run a deficit in the trade of goods and services of 3% of GDP. Starting in October the deficit began to grow alarmingly.

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