Sanctions have been used as economic warfare for centuries…and in reality hurts NO one but the average person and consumer…..then a new president and a new way of economic warfare….Tariffs.
This president has two tools in his economic bag of tricks…..yep you guessed it….sanctions and tariffs.
I have studied 18th century economist Henry George and he has lots to say on tariffs…..
American economist Henry George is best known for his 1879 treatise Progress and Poverty, for which Albert Einstein designated George a “beautiful combination of intellectual keenness, artistic forum, and fervent love of justice” (George 1879, cover). Progress and Poverty became a huge success, and in 1886 George followed up with a far more obscure — but perhaps more significant — work on the nature of free trade as pertaining to the eradication of poverty: Protection or Free Trade: An Examination of the Tariff Question, With Especial Regard to the Interests of Labor (online at the Mises Institute).
The problem identified by Henry George, in Protection or Free Trade, is that of poverty, and more specifically, wages and unemployment. What follows from that is George’s systematic and all-embracing dissertation of the effects that protectionist and free-trade policies have on the wealth of a nation and its individuals. Naturally, he arrives at a conclusion that is decidedly in favor of free trade — as opposed to protective prescriptions — as a surefire solution to the ills of poverty.
Then there are sanctions…..and I have covered gthe problems with sanctions in previous post…..https://lobotero.com/2019/02/05/sanctions/
But if you prefer…..I have Henry Goerge’s thoughts on trade sanctions……
The American free trader Henry George (1839-1897) argued that trade sanctions against “our enemies” hurt domestic domestic consumers just like any other “protectionist” trade restriction:
Free trade consists simply in letting people buy and sell as they want to buy and sell. It is protection that requires force, for it consists in preventing people from doing what they want to do. Protective tariffs are as much applications of force as are blockading squadrons, and their object is the same—to prevent trade. The difference between the two is that blockading squadrons are a means whereby nations seek to prevent their enemies from trading; protective tariffs are a means whereby nations attempt to prevent their own people from trading. What protection teaches us, is to do to ourselves in time of peace what enemies seek to do to us in time of war.
Sanctions and tariffs are a lazy person’s answers to any trade problems…..they are NOT solutions at all.
And now my cheese and wine will be much more expensive…….
The Trump administration plans to impose tariffs on $7.5 billion worth of European imports—from gouda cheese to single-malt whiskey to large aircraft—beginning Oct. 18 to retaliate against illegal European Union subsidies for aviation giant Airbus. The latest escalation in the administration’s tariffs will open a new chapter in the trade wars that are heightening fears of a global recession, the AP reports. The administration received a green light for its latest import taxes Wednesday from the World Trade Organization, which ruled that the US could impose the tariffs as retaliation for illegal aid that the 28-country EU gave to Airbus in its competition with its American rival Boeing.
“I Read, I Wrote and now You Know”
“Lego Ergo Scribo”