Am I subsidizing Safeway? Why would I ask? Right here’s why. My spouse and I spend no less than $400 a month at Safeway. Safeway doesn’t purchase something from us. So, our month-to-month commerce deficit with Safeway is no less than $400. And, in Trump’s view of the world, a commerce deficit equals a subsidy. By Trump’s reasoning, sure, I’m subsidizing Safeway.
This sounds ridiculous. It’s. But it surely’s no extra ridiculous than Trump’s declare that Individuals are subsidizing Canadians. Whenever you spend extra on somebody’s items than that somebody spends in your items, there’s no subsidy concerned. The truth that the spending happens throughout borders doesn’t change that reality.
And that reality makes Trump’s proposed tariffs on Canadian items and companies all of the extra tragic.
That is from David R. Henderson, “Tariffs Will Harm Canadians and Individuals Alike,” Defining Concepts, December 19, 2024.
Learn the entire thing. It’s unusually lengthy–about 2,500 phrases.
Shout out to Don Boudreaux, who checked out an earlier draft and gave good feedback.
