Source: EconLog
by David Henderson
“I used to think that Donald Trump was an ignoramus who didn’t understand the gains from trade. But now I realize that he understands it better than we economists. All we have are our models and our logical reasoning. Trump has experience as a trader in the real world who understands that in every trade, there is a winner and loser. He also understands that when domestic car companies charge low prices to Americans, that’s good, but when foreign car companies charge low prices, that’s bad. … I wasn’t wrong to criticize Kamala Harris for advocating price controls during the presidential campaign. But I’m wrong for having criticized Donald Trump for warning auto companies not to raise prices …. The difference is that Harris is a Democrat and Trump is a Republican and that makes all the difference.” (04/01/25)