No, it's that I wonder if you even know what you're talking about. Anybody that thinks having a massive trade deficit is a good thing clearly is confused. Unless your goal is to wipe out the middle class.
You love to keep putting words in my mouth. Here, let me try that...
Anyone that thinks hit-and-runs are a good thing clearly is confused. Unless your goal is to wipe out pedestrian traffic. So let's be gentlemen and debate reasonably without attacking each other okay?
So, for the record, in response to all the words you keep trying to put into my mouth that I did not say and do not believe in:
- A massive trade deficit is a bad thing
- I don't want to wipe out the middle class
- Yes I know that protectionist measures are in place
In the original example where "the emperor" would force Apple to make iPhones in the USA and slap 75% tariffs on Chinese-made iPhones, we would (A) increase in some manufacturing jobs, a positive aspect, but we would (B) lose other types jobs, a negative aspect. (The example given being Boeing jobs, farming, and the issues around memory chips). These are real examples by the way!
Those existing tariffs you mention in China, Japan, and Germany are exactly the sort of thing that I'm trying to avoid. We tariff Chinese-made iPhones; they tariff Boeing. It goes 'round and 'round with more and more tariffs on all sides, increasingly stifling international trade.
The WTO exists in large part so that when an unfair tariff or subsidy is applied, the affected country has remedy other than just retaliating in kind.
Not everybody can be a CEO, director, doctor, lawyer, etc. There has to be a strong manufacturing base in a country and there needs to be jobs up and down the hierarchy. Manufacturing is part of that hierarchy.
Ah, we agree! It's good to have some common ground. But I'd point out that not all jobs lost to retaliatory protectionism only hit CEOs, directors, doctors, and lawyers. In retaliation, new or additional tariffs can be applied to our own goods as well (Ford, Chevy, Boeing, big agro, etc). So we'd be adding some manufacturing jobs and losing some manufacturing, farming, and many other types of "base" jobs as well.
And retaliation? Not likely.
Unlikely? It is an indisputable fact that retaliation occurs. The US is involved in many trade wars with tit-for-tat protectionist measures.
I feel further debate is pointless. I think we can agree that neither of us will change the other's mind. I don't need the last word, but if you respond, please don't use straw-man arguments or put words into my mouth. I have faith that you can make opposing but intelligent, thoughtful points about the economy without having to unfairly attack me.
TL;DR
(too long; didn't read)
My whole point is that protectionist measures lead to in-kind measures by affected countries, causing trade wars. I disagree with you that other countries wouldn't do such a thing, because both history and current affairs show that they do.
Trade wars stifle international trade. The more barriers there are to international trade, the more countries with lots of international sales are hurt. Countries that rely on international sales should therefore be working to reduce barriers, and not work on increasing them.