You Make a Difference! Our mission and operations are funded entirely by Patriots like you! Please support the 2024 Year-End Campaign now.

August 16, 2018

Will There Be a Home for Free Traders?

Despite several interviews revealing a profound lack of basic knowledge about public policy and government, 28-year-old self-described democratic socialist Alexandria Ocasio-Cortez is a darling of the media and the left.

Despite several interviews revealing a profound lack of basic knowledge about public policy and government, 28-year-old self-described democratic socialist Alexandria Ocasio-Cortez is a darling of the media and the left. Her surprise primary victory in a heavily Democratic district all but guarantees she will win a seat in the 116th Congress and have many pundits pronouncing her the future of the Democratic Party. The prospect of an emergent far-left faction in the United States raises many grave concerns, but one area that’s getting little attention is what it could mean for the future of trade.

By now, President Trump’s attitudes toward trade are well-known. While he occasionally makes superficially free trade-oriented declarations — such as his call for the G7 to eliminate all tariffs and subsidies — it’s always premised on the erroneous belief that foreign-government interference is behind the U.S. trade deficit, which he also wrongly considers evidence that America is being cheated.

Trump has a flawed understanding of both the causes and significance of trade deficits. Briefly put, trade deficits reflect the fact that Americans can afford to buy a lot of goods from other countries, and that the United States is an attractive destination for foreign investment, which promotes American economic growth. The dynamics that have led to sustained trade deficits aren’t going to be significantly affected by his protectionism, unless his tariffs become so onerous as to make Americans significantly poorer and unable to afford as many imports.

Trump’s misunderstanding of trade deficits matters because it means he may still push for tariffs even if other nations drop theirs. If the United States continues to run trade deficits, even in the absence of tariffs abroad, Trump may conclude that a world with zero tariffs isn’t good for America after all.

In this sense, Trump isn’t all that different from the wing of the Democratic Party represented by Ocasio-Cortez or her former boss Sen. Bernie Sanders. Consider her discussion of trade during an interview with The Intercept: “(W)e have the destabilization of countries around the world due to wealth inequality that has been historically powered by global trade deals that concentrate the gains of trade into multinational corporations as opposed to the workers who create that wealth.”

Swap a few words around and a passage like that could pass for something uttered by President Trump. He blames foreigners instead of multinationals, but both politicians are highly critical of existing deals. And both treat trade as zero-sum — where someone is gaining and someone else, inevitably America, is losing.

The truth is that even under less-than-perfect conditions, the voluntary exchange of goods is mutually beneficial. It took a long time and numerous costly wars before a global system was established that permitted individuals to buy and sell across political borders without significant interference. And once that happened, a sharp rise in global prosperity followed. What barriers now remain should ideally be removed, but that’s best achieved by working within the system, not tearing it apart.

During the campaign, Trump said of Sanders, “He and I are similar on trade.” Trump was correct. Despite seemingly falling on different ends of the political spectrum, both men are populists who apparently believe that governments are better than markets at managing economic activity.

Such bipartisan protectionism isn’t new. Support for free trade has never fallen strictly along partisan lines. NAFTA cleared the Senate by a narrow margin, with similar levels of support from Republicans and Democrats, and was signed into law by Democratic then-President Bill Clinton. And while Republicans typically claim the mantle of free markets — despite being justifiably confident in the superiority of the American system during the Cold War — on trade, they inexplicably tolerate the notion that foreign governments with centrally planned economies may succeed so spectacularly as to bury the U.S. economy.

While Sanders lost his bid to take charge of the Democratic Party, his acolyte is on the rise, and many seem eager to anoint her as their standard-bearer. Unfortunately, that means Democrats are less likely to provide meaningful opposition to Trump’s trade agenda should they capture either chamber of Congress.

Trump now directs both the GOP and the nation, and Republican members’ attitudes toward trade have so far been muted to not clash with the president’s agenda.

Yet, recent polls reveal that a vast majority of Americans still support trade. Perhaps these results can provide congressional Republicans with the backbone they need to reassert institutional power over trade policy. If not, where will free traders find a political home?

COPYRIGHT 2018 CREATORS.COM

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.