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“Canadian Bacon” is a mid-1990s satire of U.S. politics. In the film, the president tries to boost the economy by starting a war with Canada. The opening salvo involves Bud Boomer, a rural sheriff from upstate New York, sneaking into Toronto to throw g …
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House Speaker Paul Ryan recently proposed a tax plan called A Better Way: A Vision for a Confident America. Ryan’s plan to make the United States more competitive includes a tax cut for businesses, a switch to a territorial tax system, and a border-adjustment tax. A tax cut and a switch to a territorial system would be positive for the economy. On the other hand, the border-adjustment tax would work like a tariff. It would encourage inefficient domestic production, which would raise prices and reduce real output. Over the long run the BAT would not even reduce the trade deficit.
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How much does import competition affect U.S. jobs? We at AIER have always argued for the benefits of free trade, but it is still worth understanding what happens to those who may lose their jobs because of international competition. The benefits from t …
READ MOREFew areas of life are as poorly understood as trade. This is remarkable because each of us engages in trade every day. We buy our groceries, clothing, electronics, etc. from other people rather than making them ourselves. If we didn’t think trade was worthwhile, we wouldn’t do it. But we do—because we know how poor we would be if each of tried to make all the things we want.
READ MOREFree trade lets global markets provide consumers with the best products at the lowest prices. Throughout its history, AIER has consistently argued against restrictions on free trade—protectionism—and likewise we oppose the border adjustment tax propose …
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We at AIER recently wrote an article defending free trade amid a new climate of protectionism. While the arguments for free trade apply to all sectors of the economy, we focused primarily on manufacturing examples. A recent op-ed in the Dallas News use …
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We received some great questions from readers on our recent article about free trade, many of which had to do with how we should respond to unfair trading practices by foreign firms or governments. One practice commonly labeled unfair is dumping …
READ MORE“When adversely affected minorities are politically powerful, governments often intervene with special-privilege legislation to insulate the “injured” parties from the effects of international cooperation or to give them special advantages in the inter …
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In the wake of President Donald Trump’s protectionist stance for domestic manufacturing, many observers have spoken in defense of free trade. AIER has its own history of publishing in this area. In this post, I want to highlight one point that we touch …
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The biggest news story in the world this past week has been the election of Donald Trump, and the biggest reason for his election was the vote of working class white voters in the Rust Belt states of Pennsylvania, Michigan and Wisconsin, states that had been projected to vote for Hillary Clinton. One current explanation is that these voters felt Trump better understood their economic anxieties better than Clinton – or past Republican candidates. In particular, President-elect Trump spent a lot of time during the campaign talking about trade with China and immigration.
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With the Trans-Pacific Partnership heading to Capitol Hill for ratification, U.S. policymakers will weigh the proposed free-trade zone in an increasingly challenging trade environment. The strong dollar, a weaker global economy and low energy prices have all worked against the United States when it comes to trade, said Bob Hughes, senior research fellow at the American Institute for Economic Research. Today, the U.S. posted a trade deficit for the month of
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