This week the Cato Daily Podcast (Subscribe!) focuses on the importance of trade as the Trump Administration arrives next week. Here’s a quick rundown.
Simon Lester discusses the potential fallout of President-elect Trump’s taking to Twitter to threaten companies like Carrier, Ford, Toyota, and General Motors.
Daniel R. Pearson discusses how multinational corporations make location decisions. For all the handwringing over cheap labor outside the United States, Pearson notes that American workers are far more productive than workers in lower-wage countries. He adds that the savings from lower-priced inputs like steel could contribute substantially to a firm’s decision to increase production outside the United States.
Daniel J. Ikenson makes a sobering assessment of the Presidential powers governing trade. As it has in many other areas, Congress has delegated many powers governing trade to the executive branch.
Daniel J. Mitchell and Daniel J. Ikenson discuss the so-called “border adjustment tax” included in a House tax reform a Congressional attempt to head off attempts to restrict trade. Depending on your perspective, the border adjustment tax could be a poison pill for tax reform or an effort to level the playing field in international trade, or both.
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