If you were a mercantilist – if you were wrong but I repeat myself – then you would be thinking that throwing up tariff barriers to imports would perhaps reduce the trade deficit. You would, if you thought that, be wrong. At least you would in a world where other people can also play silly games about trade at the same time.
The problem with Trump’s trade war thing is not only that he’s wrong. The whole point of trade is to have those imports, cutting ourselves off from them is just silly.…See More