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Trade Deal 'Losers' Have Economics on Their Side

Trade Deal 'Losers' Have Economics on Their Side

Bloomberg17 hours ago
Mercantilism — essentially the idea that exports are good and imports bad — is the most miraculously tenacious fallacy in economics. Many politicians accept it as true, but even those who understand that it's a fallacy find themselves playing by its rules. The mercantilist manual says that the Trump administration has scored huge wins in its tariff confrontation with US trading partners, and the partners appear to agree. Their 'defeat' has left them humiliated and unable to explain what they did. They might not know it, but what they did was smart.
In trade policy, 'defeat' is often underrated.
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