Brad DeLong's Grasping Reality • 1137 implied HN points • 06 Feb 25
- Broad-based tariffs are generally not a good idea because they can harm the economy. Instead of helping, they often lead to higher prices and lower productivity.
- Historically, tariffs have not stopped the decline of manufacturing jobs in the U.S., which is mainly due to increased productivity and changes in demand. The economy is doing well even with trade deficits.
- Foreign investment is important for the U.S. economy, and tariffs can actually hurt growth. Successful economies attract foreign capital, which has helped the U.S. prosper throughout its history.