Trading Away the Stimulus
- This article is several months old, but still highly relevant.Unfortunately, the author, Mr. Tonelson, misses the mark badly with his prescription, even though his analysis of the problem is quite insightful. It makes no sense to band-aid our current tax system with discriminatory tariffs in order to offset a structural problem which favors foreign producers over our own domestic producers. Why not address the structural problem itself and tax foreign produced goods the exact same way we tax our own domestically produced goods? Doesn't a non-discriminatory approach like the FairTax make more sense than introducing discriminatory measures into our tax system which would invite retaliation by our trading partners and a response from the WTO?In the past, Mr. Tonelson has not seemed to "get it". Perhaps it is time to remind him that there is a better way to address the problem.