Source: EconLog
by Jon Murphy
“Theory is vital to understanding the world. It both helps us make sense of the world around us and make predictions. Theory is like a pair of glasses: a good pair helps you see better. A bad pair makes things worse. And no pair is just useless. One of the major problems these days is that the trade policy of the Trump Administration is guided by horrifically bad theory (when guided by theory at all). Even worse, they do not even seem to grasp easy-to-verify facts and figures (e.g., Trump’s claim that the US trade deficit with China is $1 trillion. It’s less than $300 billion. Personally, I’d have relatively more faith in central planners if they could get even the basics right). This post aims to be a corrective lens on some of the nonsense.” (05/15/25)
https://www.econlib.org/the-importance-of-theory-trade-jobs-and-wages/