Economic Policy

S oon after he was nominated to be Secretary of Commerce, Bill Daley called in several prominent trade experts to brief him. What, he asked them, was the most important thing he should know? Claude Barfield from the American Enterprise Institute was quick to reply, “You should understand that the trade deficit doesn’t matter.” Barfield’s […]

Paul Krugman criticizes supporters of government activism as nothing but policy peddlers and economic illiterates, but describes himself as a liberal. What is MIT’s prodigy really up to?

Democracy has turned upside down, of late. At this writing, the nation is mesmerized by Oval Sex and related scandal. Elected representatives in Washington are talking about little else. The presidency is under siege. Cable television and talk radio savor every titillating detail. Meanwhile, the larger events now rocking the world are being addressed by […]

Supposedly, NAFTA will lead to increased movement of goods and services between Mexico and the United States — but not to more movement of people. That, however, reflects a fundamentally mistaken view of migration. A better understanding should reframe our entire immigration policy.

Some liberals worry that trade with low-wage countries will depress American wages. But globalization not only helps lift Third World people out of poverty; it also benefits American consumers and workers. Instead of pursuing protectionism, domestic policies should assure that the benefits of trade are equitably shared.

For at least a generation the U.S. has propped up the global economy by absorbing the world’s surplus of goods. That’s not good for the U.S. or its trading partners.