The Remnant with Jonah Goldberg Tariff Terrorism
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Apr 9, 2025 Scott Lincicome, vice president of general economics at the Cato Institute and a trade expert, joins the conversation to unravel the complexities of tariffs and trade deficits. He challenges the myth that trade deficits are a loss, emphasizing the importance of free trade in economic health. The discussion dives into the geopolitical fallout from U.S. trade policies, the intricate links between tariffs and inflation, and the risks of protectionism. Lincicome's insights shed light on how these issues are reshaping global alliances and domestic industries.
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Trade Deficit Delusions
- Trump's trade deficit views are economically flawed.
- He sees deficits as losses, ignoring macroeconomic factors.
Trade Balances Not Scorecards
- Trade balances, calculated as imports minus exports, are not scorecards of trade success.
- Bilateral balances should not be zero; they reflect complex macroeconomic factors like savings and investment patterns.
Arbitrary Tariff Calculations
- Trump's tariff rates are not based on foreign trade barriers.
- They're calculated from trade balances, reflecting his flawed view of trade as a zero-sum game.