Economists generally agree on few economic theories, but the negative impact of tariffs is one of them. The theory advocating for free trade without tariffs or barriers between countries was first articulated by Adam Smith in 1776 in “The Wealth of Nations,” showing that even if a country has an absolute advantage in producing goods, …
Is the focus on tariffs on goods missing the point? Part one
One of the significant risks to global growth this year just got bigger. Last week, the US increased tariffs by 25% on $325bn worth of Chinese goods. But, in reality, it’s a tax on US consumers who have to pay it to the US government, and will therefore slow economic growth in the US. By …
Continue reading “Is the focus on tariffs on goods missing the point? Part one”