There is a fundamental misconception of international trade. Under various disguises and confusion, the Institute of Collective State Trade, Trade for Individual and Private Organizations. Recent illustrations are worth reporting.
President Trump declared about his highly squalling “mutual tariffs” (“25% of Trump’s next steel and aluminum can’t be avoided that easily.”
Simple changes, they charge us and we charge them.
Translated Grandose’s “us” into the current reality, and what he says is, “A tax will tax American state exports on foreign charges against American exports.” . University economics students know that a tax is charged to importers of a country that is well estranged, and that this tax is generally transferred to domestic consumers by being equal to price increases. So what Trump really says is, “Vray Simple, foreign states charge taxes from their residents, and my own state charges equal taxes from our own residents.” Your tribe or group will harm itself, and the tribe or group I run will cause equal harm to its members. It’s that easy.
Primary economic theory not only presents this conclusion, but is a continuous confirmation by experience until mere announcements or expectations of domestic tariffs begin to push the price of I to alternative domestic goods. In the Wall Street Journal, Greg Ip writes (“Inflation helped Trump get elected. Now it’s his problem,” February 13, 2025):
this week, [Trump] It announced a 25% tariff on all imported steel and aluminum, saying that a wider range of products and mutual tariffs in the country are ongoing.
Importers and suppliers have already responded. Steel companies have already raised prices. Since Trump’s tariff announcement, futures contracts related to the Midwest steel price index have risen by around 6%.
Interada, who says “steel companies are already raising prices” is more accurate to say that domestic steel buyers are already bidding on steel prices in anticipation of intense quantities in the domestic market.
Another recent case perhaps further reveals the collectivist nature of protectionism. (Don’t expand the word “collectivist.” Communist countries, including the former Soviet Union, are struggling to highlight the superiority of collectivist labels over personal and private choices. It claims to be, but it is still collectivist. Its group advantage is small.
Access to the American market is a privilege.
What does that mean? Can foreign companies, or those he owns stock, be able to export warehouses to America, which resides in the United States without permission from the US government? Without his government’s permission, Americans would have freely agreed to what he wanted, even American producers along with foreign producers? Maybe foreign produce doesn’t offer Americans what they want to buy? In other words, certain trading activities are privileges granted to foreigners and the United States by groups (or their representatives) and can also take trade reductions (customer duties). This is a very extraordinary and shameless statement.
Trade is exchange. What about the American market for friendships and dating? Is access to this (virtual) market privileged for foreigners?
As you can see, the fundamental mistake is to imagine international trade as a trade operation by a “country.” The normative aspect of this error is that trade freedom should be placed in collective rights governed by the state, not individuals and their private organizations. This is incompatible with a free society, a society of free individuals.
Two private parties are visualized by voluntarily and in fact, exchanged with one another – for example, poor Americans in Appalachia and Moore Workers in Thailand or Vietnam – through intermediaries such as Walmart and others. Exchange US dollars. We can say: Men (both men) are free! Women (both women) are free! Compare this situation with the power of politicians to determine whether exchanges are permitted to proceed. It’s not light-jourish that Howard Lutnick, the secretary of the upcoming Howard Lutnick, was talking about Donald Trump (we can imagine his mouth opening with adorable emotion). ) (20, 2025):
“Men are power,” Trump’s Lutnick said in a speech Monday at Capital One Arena where the president’s supporters gathered to watch him get sworn in. “He’s power.”
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Brave New World: Two Groups Exchange
