Consider_this

Should We Be Hoping for More Protectionism?

Actually I want to point to one paragraph:

"I will, but color me skeptical. There's a reason "conventional economists" are frightened of a trade war: it distorts economic activity, increases inefficiencies, carries the deadweight loss of the tax and of the lost scale returns, and so reduces output. In the midst of the worst global economy since the Great Depression, that seems to be the last thing we should be seeking."

It seems to me that this is the PERFECT thing to do at this point! Our demand is obviously faltering. If we don't quickly reduce the global output to match, you'll end up with massive deflation of prices and layoffs.

Efficiencies and Productivity is the enemy in a great depression. What you want is a "reset" so people can get back to work, *and then* add back in the productivity later.

See any companies making big capital or productivity investments in this environment? Nope, instead they're reducing their size, layoffs, reducing output, etc.

Don't get me wrong, I don't like Protectionism, but I just feel like if we're to debate, at least we should get the logic correct.

Protectionism would solve the "too much output" problem, but at a cost of reducing everyone's output capability and our collective standard of living. It's synonymous to solving famine by killing people (who eat food), until there's enough food for people.

Surely there's a better alternative????