The American Compass Podcast What Will Trump's New Economic Policy Look Like? Part 1
Jan 10, 2025
Guests Jason Furman, a Harvard professor and former economic advisor under Obama, and Kimberly Clausing, a UCLA law professor and former Treasury official, dive deep into trade and industrial policy. They critique past economic strategies, especially free trade agreements, and discuss the complexities of tariffs aimed at boosting domestic production. The conversation also touches on strategic sectors like microchips and the important balance between national security and economic growth. Expect enlightening insights on the evolving landscape of American economic policy!
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Economists' Advice
- Economists' advice has been ineffective, particularly regarding free trade with China and financial market regulation.
- This has led to skepticism about their recommendations and a need for rethinking economic policy.
Globalization and Solutions
- Globalization is not solely responsible for economic harms, though it plays a role alongside technological change and other factors.
- Trade restrictions and immigration barriers would worsen the situation, while progressive taxation and investments offer better solutions.
Tariffs: Tool and Policy
- Tariffs can be used as both a negotiating tool and a permanent policy to favor domestic production.
- A global tariff can encourage balanced trade and free market principles, particularly concerning China.