Tariffs not the problem (or solution)
Great article from
(John Cochrane) that I found interesting.Explains why we have large trade deficits.
Explains why they are a symptom of the real problem (Government pushing consumer consumption over productive investment.)
Explains that tariffs are not the answer and trying to immediately eliminate trade deficits will probably have a huge negative effect on our interest rates (and economy.)
Explains what we should be doing: reform taxes to tax consumption, not saving and investment. Stop funneling borrowed money to consumption. Cure the nightmarish cost, regulatory, and permitting bloat making investment so difficult, especially public investment.
https://x.com/rggonzox/status/1911763683908124966?s=46