Friday, 23 December 2016

Import duties

The University of Chicago Booth School of Business Economic Experts Panel was asked the question,
Adding new or higher import duties on products such as air conditioners, cars, and cookies — to encourage producers to make them in the US — would be a good idea.
In response 93% of them "Disagreed" or "Strongly Disagreed". There were three "Did Not Answer" so of those who did answer 100% went with either "Disagreed" or "Strongly Disagreed".

In the comments on their vote Oliver Hart noted,
Duties lead to dead-weight losses and also retaliation.There can be losers from free trade but there are better ways to compensate them.
while Austan Goolsbee just said,
I guess none of these guys will be getting jobs in Trump's White House National Trade Council.

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