Trump’s America Takes One Step Forward, Two Steps Back

The US has imposed 25% tariffs on Chinese imports worth $34 billion. Beijing immediately retaliated with tariffs on $34 billion worth of US imports. The Trump administration is working on a second wave of tariffs on Chinese goods worth $16 billion. And, the US President Donald Trump has threatened to impose hefty tariffs on another $200 billion worth of Chinese imports.

We’re back to the trade war era! Trump’s protectionist policies could have far-reaching effects. But, is it right for America? Let’s leave politics aside and look at the situation logically.

It must be understood that technological advancements and imports would have similar results – fewer people would be required to do a job. Does this make technological advancements or imports bad? No! In fact, trade and technology form a strong backdrop for human advancement. We have always wanted to do things better, faster and cheaper. In short, doing things more efficiently is what progress means.

Let’s go 200 years back. More than 90% people across the world were employed in backbreaking labor in agriculture. Today, in the US, agriculture employs only 3% of the workforce. This is the precise reason for America being a developed nation. With 90% people being engaged in agriculture, there would be no one to manage retail stores, malls, media, airlines, hotels, tech companies and more.

Technological advancements allow labor to be engaged in much more productive activities. And, the economy grows. Imports help in a similar way. If another country manufactures something more efficiently, importing from them is a good idea. Banning imports is as ridiculous as banning sunlight to promote employment in the candle-making industry! (Read more about Frederic Bastiat and his famous Candlemaker’s Petition).

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