I agree to disagree. Our problem in the US, seems to be, right wing fantasy, not global trade. Tax cut economics are worthless if they don't cover spending. In my opinion, trade deficits should be addressed with infrastructure and subsidies; not trade wars.
In a way, I agree. Deficit spending is not a sustainable nor desirable long term plan. However, the reverse is also not desirable. Requiring both Social programs, and dictated tax policy. It is said that there are many ways to skin a cat, and there are many ways to achieve economic stability. First, of course, do not spend more than you make. A lesson that individuals, and governments, have struggled with forever.
Cooperation however, is not good either. Let’s take cars for a good example. In the 1970’s both Europe, and America, opened their markets to foreign cars. The Common Market in Europe. Britain had a number of car makers, and the cars they made were junk. Their market was flooded with not only Japanese, but European Cars. Instead of Rovers, the British people bought BMW, Mercedes, and later Audi’s as well as Volkswagens, and Fiat. One of the truly great cars of the era was the Mini from England.
Yet, the Mini suffered by comparison soon enough as the Volkswagen Golf and various European and later Japanese Hatchbacks began to flood the market. Britain through British Leyland came up with the Alegro. It was terrible.
The Mini was good, and other cars had the potential to be good, but they weren’t. They suffered and died as a result of competition from the market. Wait for it. The Americans faced the same problem. AMC went the way of the Dodo. But the other makers studied the Japanese, and the Europeans, and learned. They adapted. We saw an end to the giant highway cruisers. We saw the beginnings of some really good cars. The Chevy Luv Pick Up truck, the Ford Ranger, which in later years was just a Mazda Pick up with a different label, but we are moving forward. The Ford Explorer was a derivative of the Land Rover Discovery, itself a derivative of the Range Rover.
Car after car was updated, manufacturing techniques were updated, quality was improved. And competition provided us the consumers, a better product. It is happening even today.
Electric cars, the dream of Science Fiction writers and Futurologists were slow, had no range worth mentioning, and were ugly. They missed on all of the key checks that get a product selected by the product. Ugly is OK, the econobox hatch backs of the 1980’s prove it. If the car is reliable, cheap, and reasonably user friendly. We’ll sacrifice looks for expense in other words.
Today Electric Cars are starting to get mainstream. Why? Tesla kickstarted the whole thing. Now other makers are working on getting their share of Tesla’s lightning. Better range, faster recharge, and improved appearance. They’re still expensive, but it is improving.
Competition was able to achieve what the desires of the fantasy writers could not. Widespread acceptance of the electric car in a gas society.
Cooperation means limits. Let’s say that Spain comes up with the next Tesla. Only it’s cheap, reliable, and fast to recharge. They start to flood the market. Well, in the EU that wouldn’t be good. You see, other nations make similar vehicles, and their sales would suffer wouldn’t they? So limits on the Spanish car would insure that it’s fair for everyone. Fair for everyone is the exact opposite of competition, and does not stimulate advancements and progress and improvements. It stifles them.