EconAir

    On domestic policy.  "Ask not what your country can do for you, but what you can do for me.” On the Republican Party. "It's my party and I'll lie if I want to." “You know the mob makes you pay money, right?” says Trump about a proposed US protection fee for defending Taiwan. “You know the mob makes you pay money, right?” says Trump on extorting $1 billion  from American companies dealing with the government to pay for his ballroom. “You know the mob makes you pay money, right?” says Trump on imposing higher tariffs on all countries exporting to the American market.   On America's enemies. "America's real enemies are American cities run by Democratic mayors. This is where my new Department of War will focus. American soldiers can practice their new warfare ethos by gunning down unarmed American citizens." On dealing with political enemies. “My motto is always get even. When somebody screws you, screw them back in spades.” On domestic subversi...

BACKGROUND Trump, of all people, does not seem to understand that companies, not countries, import and exports goods and services. Trump does not seem to understand that many American companies and industries have outsourced the production of their inputs, products and services to China, Mexico and Canada to lower costs and increase profits. They have already decided what to produce here and what to produce in other countries. Total American imports are around $3.5 trillion. Total exports are around $2.5 trillion. Both numbers include trade in services in addition to trade in goods. so the total trade deficit is around $1 trillion. Any higher tariffs the U.S. puts in imports will probably be matched by tariffs on U.S. exports. So while tariffs in imports will hurt foreign exporters, reciprocal tariffs will hurt American exporters and their employees. And imports of commodities like oil and copper, steel and aluminum, plus inputs and sub-assemblies that go into domestic American prod...