Tuesday, June 5, 2018

Tautologically incorrect

Trade necessarily divert resources, but it's to the benefit of both buyers and sellers, on each side of the political border. When government intervenes, the benefits are reduced on both sides, and the more so if each side's government intervenes.
The poster implies trade is a two way deal, then in the same breath says government trade is a one  way deal.  In fact governments intervenes in domestic trade and foreign trade, and that is the two way trade. 

Government applies tariffs to domestic trade, they are called taxes. So the government should not impose tariffs on foreign goods?  One has to consider both sides of the trade.

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