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Post Yukon Huang, "Cracking the China Conundrum"
Created by John Eipper on 08/13/19 4:19 AM

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Yukon Huang, "Cracking the China Conundrum" (Tor Guimaraes, USA, 08/13/19 4:19 am)

For those WAISers wanting to dig deeper and wider, Yukon Huang (see my earlier post, 11 August) has a book Cracking the China Conundrum. He goes around promoting this book and answering audience questions. One of my favorite discussions is below:


John Eipper commented on my last post: "I do know that our soybean farmers in Michigan are hurting. They don't seem to be directing their ire at Trump, however. This in itself is a political triumph for The Donald."

Such a triumph is very questionable, since the money from the tariffs is being promised as a subsidy to the affected farmers. In other words, the taxes are in fact a tax on American business passed on customers, so the American people pay the farmers hurt by the tariffs. Nice for the farmers, but bad enough to make the great Adam Smith roll over a few times in his grave.

JE comments:  I would assume a great deal of US agricultural output is making its way to Canada, and from there to China.  But the Chinese are pretty sore at the Canadians, too, with the arrest earlier this year of the Huawei executives.

Protectionism used to be the Democrats' game, but under Trump it's never business as usual.

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