One of the many ways conventional economic theory hinders our discussions of trade is it gets us thinking about goods “produced” in one country and “consumed” in another. Mexicans grow tomatoes, drill oil, sew shirts, and assemble cars; Americans eat, burn, wear and drive them.
About J.W. Mason’s article: “This is really good. I’d add that the consumer goods we import from Mexico probably have a lot of US content, too.”
First, the White House issued an official schedule of the visit in which Theresa May’s name was spelled incorrectly. Three times.
Paul Krugman: “Border Tax Two-Step (Wonkish)” (NY Times Blog)
Trump tantrums aside, you may be finding the whole border tax adjustment discussion confusing. If so, you’re not alone; I’ve worked in this area my whole life, I co-wrote a widely cited paper (with Martin Feldstein) on why a VAT isn’t an export subsidy, and I have still had a hard time wrapping my mind around the Destination-Based Cash Flow Tax border adjustment that sort-of-kind-of constituted the basis for the Mexico incident.
[…]Republicans are still grappling with how to repeal and replace the Affordable Care Act, with no signs that they have reached a consensus or are ready to plow ahead with a specific plan.
‘I can remember a time when people of good will were equally certain that the newly elected President Ford would destroy the world by accidentally falling against the nuclear button.’
The Trump presidency has motivated millions to take action, even people like me who can barely be bothered to leave the house most days.
Marc Dion: He Was So Tough, I Thought He Was a Hipster (Creators Syndicate)
My wife likes hipsters. “They dress so neatly,” she says. “They’re not like those slobs who go to the Wal-Mart in pajama pants with the bottom of the legs all dirty and dragging on the floor.”