Paul Krugman | Uses and Abuses of Economic Formalism  – The New York Times. My Comment: “Economies of Scale”

The Pearl River-Jericho Road-wampum-cowrie shell economics of Trump has nothing in it to make America great. Prosperity, income and freedom, requires merit and goals–neither a part of this administration. What Trump achievement matches Obama eliminating medical limits or including previous conditions in health insurance?

You can not build progress on blame. Trump’s blame has turned into a hatred of success. He goes after private companies! But blame will win elections, when paired with fear. Economics is an easy way to inflict abuse on communities with a narrative that says their abuse is in everybody’s best interests. “Deserving blame” is a favorite Trump technique! His narratives depend upon blame. Without it he has nothing to rail against.

We see imaginary objects of blame and fear reoccur: the reappearance of Middle Eastern terrorists crossing the Southern border with children; their first reappearance since the travel ban. No evidence or details presented–another Trump flaw. Trudeau dishonest? How? Exactly how is the world’s largest economy, a victim?

To expand trade, build economies of scale, the best path for rebalancing a trade interests. We don’t need a milk war with Canada! BMW’s largest plant, making its luxury convertible is in a Republican state! Boeing imports. But its profits are not matched to trade–trade balances are not profits and losses.

US food-related workers are likely to be foreign-born and estimates suggest 50% are undocumented, as high as 70% for workers engaged in harvesting (land and sea). Instead of kicking out the globe’s most productive agricultural work force, providing consistent quality, at low cost to US tables, the current administration should provide visas for food workers–ending the immigration crisis and providing the US with a vital labor force that would put America first in global food security.

Expanding the labor force has many direct and indirect benefits! Mainly, it would create economies of scale (as exist in West Virginia in chemical polymers (a billion in exports!), South Carolina in transportation with Boeing and BMW, Atlanta as an airline hub with Delta–a 1000 flights a day!, and low cost carriers, Phoenix call centers (100K jobs) and with shipping infrastructure could turn the US agriculture into the global breadbasket, surpassing Brasil.

The global middle class doubles by 2028–a decade–and food will see steadily raising demand for quality, variety, and quantity, while expanding diversity in taste, prep methods, and storage.

In this open territory, America should build new markets (including infrastructure: warehouses, refrigeration, etc.) with strong financial and political ties. New York, Houston and other cities are mini-models for food diversity. Trump’s racism blocks the critical element of success: a skilled, willing-to-work labor force!



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