Egregious Indian protectionism against trade in services

For many decades, India was one of the most protectionist countries in the world. This did great damage to growth and knowledge in India. Tariffs dropped from ridiculous levels to ridiculous levels in the early 1990s and then got stuck there. Yashwant Sinha, as Finance Minister, initiated a remarkable program of cutting the peak . . . → Read More: Egregious Indian protectionism against trade in services

Flaws in the Defense of Free Trade

From Art Carden:

But there’s more to this than meets the eye. What we don’t see are the hidden costs of protectionism. The first is the waste from using costly production methods. Protectionism changes manufacturers’ incentives, and they use capital and labor that could have been better-used elsewhere to produce (say) cars. The economic . . . → Read More: Flaws in the Defense of Free Trade

Chuck Moulton: Open Letter to Gary Johnson on the "Fair" Tax

I’m not going to post the whole letter here — you can read it at Independent Political Report. And you should. As a teaser, here’s the opening:

Main libertarian objections to the Fair Tax: 1. The prebate would start a new welfare entitlement. 2. The transition would redistribute from savers to borrowers. 3. There . . . → Read More: Chuck Moulton: Open Letter to Gary Johnson on the “Fair” Tax

Free Trade Fallacies

I sympathize with the sentiment, but this is a dumb way to analyze free trade:

Decades of outsourcing manufacturing have left U.S. industry without the means to invent the next generation of high-tech products that are key to rebuilding its economy, as noted by Gary Pisano and Willy Shih in a classic article, “Restoring . . . → Read More: Free Trade Fallacies

Foreign Trade Revisited

The current support for free trade is based on the supposition of defending consumers from higher prices. What the higher prices would indicate, if they were allowed to occur, is that American production is being destroyed. The laws of supply and demand would bear this hypothesis out because the cumulative effect of domestic economic . . . → Read More: Foreign Trade Revisited

Trade Agreements and the Free Market

This sounds familiar:

Later this year, the Obama administration and Congress will seek bipartisan votes to pass free trade agreements with South Korea, Colombia and Panama. With 87% of global economic growth over the next 5 years taking place outside of the United States, trade supporters believe these agreements will create jobs and prosperity . . . → Read More: Trade Agreements and the Free Market

Increasing Complexity And Violence

The transition from the Industrial Age to the Information Age is resulting in a sea change between protection and extortion. As the world gets increasingly complex the result is a diminishing ability to extort while at the same time tools of protection are getting cheaper and more powerful. The arbitrary walls are coming down.

. . . → Read More: Increasing Complexity And Violence

Protectionism, Recession, Recovery: Looking Back and Looking Forward

In thinking of protectionism, the Great Depression, the Great Recession, and what might come next, here are two interesting angles.

Governments with their backs against the wall

Ideally, stabilisation using monetary and fiscal policy, alongside actions by the private sector, should restrain the decline in consumption, and yield conditions which are not too harsh . . . → Read More: Protectionism, Recession, Recovery: Looking Back and Looking Forward

Getting to a Liberal Trade Regime

I wrote two columns on trade liberalisation in Financial Express:

Where did the Bombay Club go wrong? Trade liberalisation: Looking beyond the WTO

Also see:

Protectionism by India, as seen at Global Trade Alert. The Unrelenting Pressure of Protectionism: The Global Trade Alert’s Third Report by Simon J. Evenett, on voxEU yesterday. Praveen Kumar . . . → Read More: Getting to a Liberal Trade Regime

Symposium at the Korea Society (NYC): The Perils of Protectionism: Korea’s Investment Challenge

On February 25, 2009, Henry Seggerman-who manages the successful Korean International Investment Fund, was the guest speaker at a Korea Society (based in New York City) symposium entitled The Perils of Protectionism: Korea’s Investment Challenge. He is also a noted columnist for the Korea Times and a contributor to other noteworthy . . . → Read More: Symposium at the Korea Society (NYC): The Perils of Protectionism: Korea’s Investment Challenge