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Report Date: May 2018
Brexit and Trump’s trade policies show that political leaders are not using comparative advantage to their economic benefit. If China can make some goods cheaper, MacLeod says it is in America’s best interest to buy these goods from China. Restrictions on trade hurt domestic consumers through higher prices. China is not to blame for the U.S. trade deficit. The U.S.’s monetary and fiscal policies are the cause, MacLeod says.
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