Kindergarten Arithmetic 101

If Trump extends his wall to cover the entire border, instead of just the one shared with Mexico, and then bans or punitively tariffs every single good that uses steel as an input, recursively, as well; he just may succeed in driving up the domestic price of final goods, to the point where both nominal labor compensation and nominal raw materials prices can be increased at the same time.

In doing so, he will ensure that not a single American made product of any kind, will be internationally competitive over time. This is exactly what the Latin American import substituting “structuralists” did, back in the 50s and 60s.

The above analysis from reader "Stuki" is obviously correct.

Disappointingly, there is debate over the obvious. And that's not the only flaw of economic illiterates.

Mathematical Explanation of Deficits

For a mathematical explanation of trade deficits, please see Trump's Tariffs Show He's "Clueless About Trade".

Mike "Mish" Shedlock

Peter Navarro's Trade Math Says the US Lost 55 Million Jobs

Donald Boudreaux, Professor of Economics at George Mason U, calls out Peter Navarro for his impossible trade math.

China May Cancel Trade Talks if Trump Extends Tariffs

After Trump reached out to China offering trade talks, he then gave the go-ahead for more tariffs. China may back out.

Tony Blair’s Disingenuous, Self-Serving Analysis of Iraq

When I mentioned names of those who played a role in the current mess in Iraq (see Assessing the Blame for Iraq: Bush, Obama, McCain, Others; Iraq Sunken Costs), I left out one key name, former UK prime minister Tony Blair.

Debate Over Education: Is College Worth the Cost?

New schools are popping up. Some offer one year programs but no college degree. Good idea?

Coronavirus Simulating a Full Blown Trump Trade War

Trump likes trade wars. Well, this is what happens when borders close.

Trump Tweets "Trade Wars are Good and Easy to Win"

In one Tweet, Trump proves he understands neither trade math nor trading partner psychology.

Trade Debate: US Mulls Lifting Sanctions on China to Hasten Deal, Calm Markets

Treasury Secretary Steven Mnuchin and Trade Rep Robert Lighthizer are on opposite sides of a heated debate on China.

Free Trade Avocate Gary Cohn Resigns as Trump's Economic Advisor

Gary Cohn has had enough of Trump's tariff policies. He resigned today.

With Trade Deficits Soaring: Who Will Buy US Treasuries?

"Will there be a mismatch between what the U.S. wants to sell (Treasuries) and what the world wants to buy?"