It’s Free Trade, Not Tariff Walls, That Drives Excellence And Competitiveness

It’s competition that drives up productivity – why bother to do that hard work if you don’t have to? Foreign trade is simply that competition from foreigners that similarly drives up productivity. We have historical evidence of this too:

Early 20th century American exceptionalism: Production, trade and diffusion of the automobile
Dong Cheng, Mario Crucini, Hyunseung Oh, Hakan Yilmazkuday 08 November 2019

As the current narrative goes, the loss of US manufacturing jobs is due to competition from China and one way to get the jobs back is by running tariffs up the proverbial flagpole.…

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