He protectionism It constitutes a danger for economic growth, employment and the prosperity of all citizens, because it prevents progress and, with it, the creation of activities, jobs and wealth.
We now emphasize that with Trump he will come back in force, and it is true that a worrying protectionist desire appears in his program, but it is neither new nor more aggressive than what the United States has developed during the last fifteen years, including Trump’s first term. So, in recent times, we have experienced constant protectionist tensions around the world. Let us remember the trade war of the United States with China, with France and with the entire European Union, which constituted a constant danger that gripped the economy.
This applied protectionism causes significant damage to the entire international economywhich could see its growth reduced by 2 to 4 tenths per year, with the consequence of job losses, also in a context of economic slowdown.
Additionally, protectionism is usually responded to with more protectionism, in the form of a counterattack, from countries affected by the first country’s tariffs, potentially entering into a trade war that could continue in the future. infinite, impoverishing the economies of both countries. David Ricardo made it clear that comparative advantage and unrestricted international trade helped improve the prosperity of the economies involved in it and that, therefore, protectionism prevented this improvement and, in general, caused worsening.
Protectionism is therefore not the solution, neither from Trump nor from anyone, but rather it is the usual solution. a measure that demonstrates the incapacity of an economy to progress competitively. The United States should not apply tariffs, as this would only contribute to an apparent improvement in its economy in the very short term and a deterioration in the medium to long term. In addition, it would be necessary to eliminate those that currently exist and which, I insist, are no less than those that Trump wants to implement.
China is a special case, because it claims to play by the rules of the market economy, but it remains a planned and interventional economy, whose goal is to defeat others. And the EU needs to focus more on eliminating the crazy regulations that prevent it from growing instead of crying over Trump’s victory, which, if Europe is smart, could benefit it in getting rid of the dogmas of environmental fundamentalism in which she has lived for decades and medium.
Trump should accept free international trade and abandon protectionist ideas, without doubt, and they can be encouraged to do so if they negotiate intelligently on the international terrain. After all, Trump is a businessman who is constantly negotiating, and if the rules are clear, a deal can probably be reached with him so that protectionism does not prevail.
