While the analysis is not in paradigm with MMT, it is the way many if not most approach the issues and this cognitive bias gives a spin to behavior based on it.
Valdai Analytics
Finance as an Operational Theater in US-China Trade War
Alexander Losev
1 comment:
Tom -- I came across this article on tarriffs from Paul Craig Roberts:
https://www.paulcraigroberts.org/2019/05/14/the-tariff-issue/
He makes the point that US global corporations are responsible for lost American jobs, not the Chinese, and sets forth an interesting idea about changing the way US corporations are taxed as a solution to bringing jobs back to the US. However, he seems to say that tarriffs are not the solution because the cost of the tarriff will just be passed on to the US consumer in the form of higher prices. What I don't understand is why wouldn't his objection to tarriffs also apply to his tax idea -- that is, why would the higher taxes he proposes be passed on to the US consumer just like the tarriffs? Do you see any difference between tarriffs and taxes in this regard? What am I misssing?
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