GIS Statement by Prince Michael of Liechtenstein
Trumponomics is worth a second look | The public perception of President Donald Trump’s economic program is that it is a chaotic mix of protectionist measures, tax relief for rich people, uncoordinated increases in infrastructure spending and antisocial cuts in healthcare benefits. However, it may be worth taking a closer look at the administration’s agenda before jumping to premature conclusions.
The United States, along with Europe, has a long track record of Keynesian overspending. This means that the present administration is saddled with a difficult economic, financial and fiscal legacy.
The biggest public focus is now on claims of protectionism. But the mantra of the present administration is not against free trade per se, but against the unfair practices of some U.S. trading partners. Obviously, it would be best for the world to have an unrestricted global exchange of goods and services. Realistically, however, every country will have its restrictions.
China and bilateralism
Unfortunately, behind the praiseworthy aim of fighting unfair practices is the largely unfounded claim – featured prominently in the presidential campaign – that unfair Chinese labor practices have caused the loss of millions of U.S. industrial jobs. No mention was made of the real culprit: failures by American labor unions and politicians, which have resulted in insufficient modernization of industry and improvements in worker skills and productivity.
It is correct that the U.S. has a huge trade deficit with China and that the U.S. imposes fewer restrictions on trade and business in general than China does. However, one must also consider that China’s total purchasing power is still inferior to the U.S., which contributes to its lower import figures. That doesn’t mean President Trump is wrong to insist on fair practices by China, which is something that previous U.S. presidents have done …
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Trumponomics is worth a second look
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