Professor Dan Drezner is again illustrating how we ended up with a misbegotten consensus on globalization built upon inadequate assumptions and shallow analysis. A couple of weeks ago, we encountered him badly mischaracterizing a study about the supposed value of trade liberalization. Breezing past that issue, he is back now with a more outlandish claim, that: “a world in which ‘trade were balanced, domestic industry robust, and productivity rising’ is a world that not only does not exist, but very likely cannot exist” (emphasis in original).
German philosopher Hegel postulated that history progresses through thesis, antithesis and then synthesis. Today we are seeing the first two dynamics with trade policy and attitudes towards globalization; we desperately need the third.
In a recent post, Rachel Bovard rightly defended the notion that in certain instances national security considerations should supersede free trade considerations. She specifically cited the ban on Huawei in the context of a discussion of a recent Real Clear Markets column by economist John Tamny, who makes a traditional free market case against the ban on Huawei in the US market
In a recent Real Clear Markets column, economist John Tamny made the case that Oren Cass’s policy advice is backwards and will result in political doom for, in Tamny’s words, “the hyper emotional Marco Rubio.”
Professor Dan Drezner has been crudely criticizing Senator Josh Hawley’s New York Times op-ed on U.S. withdrawal from the WTO—treating it “the way one would treat an undergrad paper in global political economy,” awarding a C-minus, and offering the feedback that, “You can do better work than this, Josh. Put in the effort, do more research and make sharper arguments next time.” He exposes the fundamental weakness of his critique though, with the claim that “Hawley prefers exiting the WTO and rejecting the estimated $2.1 trillion in benefits from trade,” in the process demonstrating exactly what simplistic economic analyses of trade policy get wrong.
It is refreshing to see an increasing number of politicians and pundits from across the political spectrum calling for re-establishing their manufacturing base to address the vulnerabilities exposed in the wake of COVID-19. The latest is GOP Senator Josh Hawley, calling for the abolition of the World Trade Organization, in a NY Times Op-ed.
Sen. Josh Hawley recently opined in the New York Times about the need for the US to back out of the World Trade Organization (WTO) and engage the global economy with bilateral trade agreements that better reflect American interests.
If comparative advantage is created rather than discovered, refusing to play the game has consequences.