Trump focuses on US economy, not theory of free trade

President Trump should impose tariffs on imported goods to level the playing field between domestic companies and foreign-based companies.  It will make domestic companies more competitive with foreign-based companies.  This is part of his program to stimulate the economy by reducing government regulations and the corporate income tax, which add to the costs of doing business – or, simply, to put America first. Aside from the politics of attacking Trump's proposals, the premise of those who oppose tariffs and favor "free trade" is the principle of "comparative advantage."  This means that the economy benefits if goods and services are made and provided by the most efficient and lowest-cost provider. Comparative advantage is a term associated with 19th Century English economist David Ricardo. Ricardo considered what goods and services countries should produce, and suggested that they should specialise by allocating their...(Read Full Post)