Friday, August 14, 2015

Ron Paul versus Donald Trump on International Trade

-Robert Wenzel
Donald Trump, who is seeking the Republican Party presidential nomination, has stated a number times that he would raise tariffs if he became president of the United States. He also suggests that he would stop Ford from building a billion dollar auto production facility in Mexico.

He seems to think that trade is some sort of nationalistic game where deals must be cut at the government level versus at the level of the businessman, businessman to businessman.

In short, he has no understanding of comparative advantage.

Contrast this thinking with the thinking of Ron Paul. He writes in his new book, Swords into Plowshares (my emphasis):