Friday, February 11, 2011

The Trump Card

OK -- Donald Trump spoke at CPAC the other day.. announcing a possible run in 2012.  It was a fairly good speech, given that he clearly knows very little about politics.  Watching, it also became glaringly apparent that he also doesn't seem to know much about trade/economics.. But... but I mean, he's a billionaire!!  how can that be??  I don't know, I almost fell out of my chair laughing at his misunderstanding of some very basic, fundamental trade/econ jargon:

"We don't have free trade. You know I believe in free trade, right? But we don't have free trade. We have very, very unfair trade. I call it unfair trade. I would tax them 25 percent. They would come to the table immediately."

(The above quote may be from another interview, or from CPAC; the site wasn't clear, but it read how I remembered him speaking in the CPAC thing) He proceeded to talk about promoting fair trade... (Even more bizarre).

I feel like if I explain it, I'll give it away.  Your assignment: find out why his paragraph quoted above contradicts itself.  I can say that it's quite possible he knew exactly what he was saying, and was pandering to "free trade" idiots who don't know their head from their ass..  As a matter of fact, I hope that's the case.  Either way, comments are open on this post.

Hint:  Don't get me wrong -- I am not necessarily against protectionism, as described by Trump.  

Note: If you post saying how there's no contradiction, and I am in a good mood, I will do you a favor and just delete your message.

~Nic

1 comment:

Better Orange Than Dead said...

I debated including this, and after a cigarette, decided I'd better beat you to it:

Exchange rate, and currency manipulation .. distorting influences are 'against' free trade. If that is happening in a country, a response of a tariff doesn't push the balance back to making it free trade.. it makes it even LESS of free trade.. Kind of like if your cash register is over $1 on Thursday, and under $1 on Friday, it might seem that it's balanced, when in reality, you were off $2... the goal is accuracy. Likewise, the goal of free trade is actual free trade.