Border-Adjustment Sleight of Hand? Sense and Nonsense on the Border Adjustment Tax

The trickle of articles discussing the proposed Border Adjustment Tax (BAT) has turned into a veritable flood. Not surprisingly, the lion’s share of these articles oppose the idea of border adjustment. It would be tedious to run through them all; suffice it to say that the primary argument is that such a tax would raise … Continue readingBorder-Adjustment Sleight of Hand? Sense and Nonsense on the Border Adjustment Tax

A Monetary Solution to Trade Imbalances? Gilder and the Gold Standard

The wait continues regarding the tax reform proposal to come out of the White House and be taken up by Congress. Despite the headlines dominated by more peripheral matters, tax reform is shaping up to be one of the cruxes to the success of the new administration. It is not simply a matter of reducing … Continue readingA Monetary Solution to Trade Imbalances? Gilder and the Gold Standard

The Border Adjustment Tax The Way Forward, or Regrettable Sidetrack?

The persistent trade deficit being run by the US, which is the major manifestation of the lopsided global trading system, has to be dealt with to ward off economic disaster. The reason for this is outlined specifically in this previous post, and generally in these posts. It is a sad but revealing commentary that it has … Continue readingThe Border Adjustment Tax The Way Forward, or Regrettable Sidetrack?

Trumponomics and the Great Rebalancing

Donald Trump’s election victory on November 8th is now a fact. Reactions to it have not been lacking, of course. On the economic front, they have ranged from the cautiously optimistic to predictions of utter doom. For their part, the financial markets went from downturn to upturn in short order (as chronicled here by Jerry … Continue reading “Trumponomics and the Great Rebalancing”

Confessions of a Free Trade Advocate

Ever since I can remember I have been a proponent of free trade. It seemed the logical thing: why should the government restrict economic activity which in itself is legal and aboveboard? And when I began exploring economic theory, lo and behold, free trade was at the forefront of most every exposition. It was the … Continue reading “Confessions of a Free Trade Advocate”

National Economy?

At first glance the notion of a national economy would seem to be self-evident. After all, the lion’s share of economic data comes in the form of “national accounts,” which treat the nation as a self-contained economic entity, like a business. And the talk, when it comes to the economy, is always of how the … Continue reading “National Economy?”