What's Holding This Market Up?

[curiousGeorge8]

Adam Smith on foreign trade

"It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry."

https://www.thestreet.com/politics/what-is-a-zero-sum-game-14818535

 

[ironchef]

Trump put is holding the market up as he needs to win the re-election in 2020.

As for the trade wars, even the US Chamber of Commerce say the tariffs are the wrong approach.

"The U.S. needs free and fair trade, but imposing tariffs to get there is the wrong approach."

https://www.uschamber.com/tariffs

What would be the right approach?

 

[ironchef]

Adam Smith on foreign trade

"It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry."

https://www.thestreet.com/politics/what-is-a-zero-sum-game-14818535

If we produce nothing of value?

 

[curiousGeorge8]

What would be the right approach?

If I were Trump, I would dare China to sign a zero-tariff trade treaty so that each country spends time to improve their respective competitive advantages and let consumers choose what to buy. This approach will be more productive than erecting trade barriers.

 

[ironchef]

If I were Trump, I would dare China to sign a zero-tariff trade treaty so that each country spends time to improve their respective competitive advantages and let consumers choose what to buy. This approach will be more productive than erecting trade barriers.

Actually not a bad thought.

What about other more critical issues e.g. limit access to China market, forced tech transfer and IP thefts which are more important than trade deficits and tariffs?