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Home / Tag Archives: Globalization/Trade

Tag Archives: Globalization/Trade

More on the Summers v. Biden Spending Debate

I already weighed in on Larry Summers’ complaint that the Biden rescue package may overstimulate the economy. As I said, I thought that while he could be right, the risks of going too small were so much greater than the risks of going too big, that it was worth going forward with the Biden package. One of the points I made in that post was that excessive demand could be siphoned off in the form of a larger trade deficit, thereby limiting the extent to which it creates inflationary...

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Even In the Face of Coup Attempt, NYT Continues Propaganda for Upward Redistribution Through Trade

I have repeatedly raised the point that media accounts routinely use the term “free trade” when they can more accurately say simply “trade” or trade policy. It is amazing to me that this practice continues. We saw it yet again in a NYT article on how many Republicans continue to be faithful to Trump even after last week’s coup attempt. The article told readers: “Anthony Sabatini, a Florida state representative, described Ms. Cheney and other Republicans who...

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China Has the World’s Largest Economy: Get Over It

It is more than a bit annoying to hear reporters endlessly refer to China as the world’s second largest economy. It isn’t. It’s the world’s largest economy and has been since 2017. Here are the data from the International Monetary Fund. Source: International Monetary Fund. As the chart shows, China’s economy first passed the U.S. in 2017. It is projected to be more than 16 percent larger this year, and by 2025 is projected to be almost 40 percent larger by...

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Bloomberg Is Concerned that Janet Yellen’s Dollar Policy May Lessen Wealth Inequality

You don’t have to look far, it’s literally the first sentence in a Bloomberg piece on dollar policy under incoming Treasury Secretary Janet Yellen. “Janet Yellen once touted the benefits of a weaker greenback for exports, but as the incoming Treasury secretary, she faces pressure to return the U.S. to a “strong-dollar” policy — and may cause trembles on Wall Street if she doesn’t.” For folks who don’t know, the vast majority of U.S. stock is held by the richest 10 percent of households...

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“Protecting Intellectual Property” Against China Means Redistributing Income Upward

The New York Times had an article discussing the prospects for U.S. trade relations with China during Biden’s presidency. At one point it tells readers: “Mr. Biden has given few details about his plans for U.S.-China relations, other than saying he wants to recruit American allies such as Europe and Japan to pressure China to make economic reforms, like protecting intellectual property.”  Stronger and longer patent and copyright protections have redistributed enormous...

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As We Wait to Figure Out Who We Elected, New York Times Feeds Us Pablum on Our Social Problems

In its efforts to provide us exactly what we don’t need now, the New York Times gave us an utterly pointless piece by Yuval Levin telling us that we shouldn’t worry about national politics and instead focus on helping our neighbors and communities. This paragraph tells it all: “More often, though, our deepest problems aren’t really amenable to resolution by a president. These problems have been adding up to something of a social crisis, evident not only in the breakdown of...

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Trump’s Triple Failure: Virus Control, Stimulus, and the Trade Deficit

See article on original site Given the precarious state of the economy, President Trump’s reckless decision to walk away from stimulus negotiations last week was a consequential act of political malpractice. He has since flipped and flopped on this by the hour, but his actions have been particularly rash given his administration’s failure to even try to control the virus. First they ignored the health outcomes. Now they’re playing erratic politics with the resulting economic pain. But working...

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Waiting for a Vaccine: Killing for Inequality

I have been harping on the fact that it is very likely China will be mass producing and distributing a vaccine at least a month, and quite possibly several months, before the United States. This should make people very angry. Even a month’s delay is likely to mean tens of thousands of avoidable deaths and hundreds of thousands of avoidable infections. And, it adds a month to the time period before we can get back to living normal lives. Of course, the delay could end up being many months,...

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Trade Wars Are Class Wars: Even More than Klein and Pettis Say

I have long enjoyed reading Matthew Klein’s columns in the Financial Times and elsewhere. They are invariably insightful and I have learned much from them. I am less familiar with Michael Pettis’ work, but I have liked what I have read. Therefore, I expected a lot from their book, Trade Wars are Class Wars, and I was not disappointed. The basic point is that the major trade imbalances in the world over the last four decades have been driven by the suppression of wage growth, with income being...

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