Opinion | The Devil and Tom Donohue – The New York Times | My Comment


Walter Rhett
Charleston, SC 

Economics is more than politics; more than law; economics is more than security and safety nets; economics is more than trade, defense allotments, healthcare, budget cuts, GDP, interest rates, inflation, fraud, privatization, pensions, and jobs.

Fundamentally, economics is the organization and distribution of goods and services that express certain values–economic choices about resources big and small that define unseen the many details of our lives–economics is the activity that shapes our sense of security and community, defines our paradoxes and contradictions, our path to prosperity and wisdom, and dream-driven freedom.

That said, economically America is making many dreadful mistakes. Trump gets the simple stuff wrong, which means the US will not be able to keep pace.

Trade is a snapshot, a balance sheet–it does not express productivity, growth, jobs, or innovation. Think New Zealand: the Pacific Island country often runs large deficits in its balance of trade, but is the 53rd largest national economy–because trade doesn’t indicate goods and services sold for profit, only the value of those received and shipped. The key to much of trade is not its balance, but commodity pricing.

Tariffs are fiat pricing (fixed by the government); it make things cost more. It just takes longer in a mature economy to notice. Trump sells economics that later becomes toxic.

18 Recommend

Walter Rhett Charleston, SC5h ago Economics is more than politics; economics is more than law; economics is more than security and safety nets; economics is more than trade, defense allotments, healthcare, budget cuts, GDP, interest rates, inflation, fraud, privatization, pensions, and jobs. Fundamentally, economics is the organization and distribution of goods and services that express certain values–economic choices big and small that define unseen the many details of our lives–economics is the activity that shapes our sense of security and community, defines our paradoxes and contradictions, our path to prosperity and wisdom. That said, economically we are making many dreadful mistakes. Trump gets the simple stuff wrong, which means the US will not be able to keep pace. Trade is a snapshot, a balance sheet–it does not express productivity, growth, jobs, or innovation. Think New Zealand: the country often runs large deficits in the balance of trade but is the 53rd largest national economy–because trade doesn’t indicate goods and services sold for profit, only those received and shipped. The key to trade is not its balance, but its commodity pricing. Tariffs are fiat pricing; they make things cost more. It just takes longer in a mature economy to notice. Trump sells economics that later becomes toxic. Reply18 Recommend

Advertisements

Make History: Leave A Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s