I've seen this gif a lot showing that global inequality is falling. But no one seems to notice or mention that the main driver - emerging Chinese middle class - happens in the most protectionist country. https://ourworldindata.org/global-economic-inequality …pic.twitter.com/bEfsPUCT8D
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Let me try to synthetize the idea. 1 there is a tradeoff between redistribution via taxes and inequality (helps) and productivity (hurts). 2 i propose the same is true for tariffs. 3 w/o global governance the world seem to default to protectionism anyway. 4 accept as lesser evil.
Cool I was going to ask you to do that. To put things in concrete terms, if Africa had better competent protectionist policies their people would be forced to make shoes, apparel, etc., which might even be better than gov't handouts generated by tax revenue.
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Most nations default to protectionism. If you're the best at making everything, you might want open trade...I think that was a big motivation for the push made by the U.S. pre-Japan. We had all the resources and all the know-how, so of course lets open the borders.
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Yes, plus the USA (thought it) had the military power to back the necessary global rule of law up. There are reasons besides incompetence though, e.g. risk of capital flight of the global economy crashes.
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Set aside the question how much money actually becomes handouts to people vs gets stolen, I think most people choose jobs instead of handouts if they think they have a choice. For many people certain jobs are not just for money but purpose, dignity, self-realization.
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Haha well...Africa is a special place. I've read quite a bit about what it's like to employ there and I've also spoken to people who worked in factories there. Payday is on Thursday. No one works Friday. A lot of stuff like that. That said, not all the countries are this way.
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