The article starts off strong by making a strong argument that 'it's different this time' because of the US's trade deficit and how Americans buy too much junk and don't save enough.
But then it says 'That would lead U.S. GDP to rise, resulting in higher employment, higher wages, and less debt.' This is clearly false as tariffs distort the market. With free trade every country can specialize in what it is best at (their comparative advantage) maximizing GDP. So no, the GDP would fall because Americans are forced to divert resources from more lucrative industries.
Comments
The article starts off strong by making a strong argument that 'it's different this time' because of the US's trade deficit and how Americans buy too much junk and don't save enough.
But then it says 'That would lead U.S. GDP to rise, resulting in higher employment, higher wages, and less debt.' This is clearly false as tariffs distort the market. With free trade every country can specialize in what it is best at (their comparative advantage) maximizing GDP. So no, the GDP would fall because Americans are forced to divert resources from more lucrative industries.