Dr. Herbert London of the London Center for Policy Research appeared on Tuesday’s Breitbart News Daily to discuss Donald Trump’s economic policy speech with SiriusXM host Stephen K. Bannon, beginning with the free trade issue.
As far as the trade is concerned, I have my doubts, and the reason why I have my doubts is that, like the technological revolution we’ve gone through, there is no question there are many benefits to be derived. There’s a class of people that obviously derive a disproportionate share of the wealth that is created with technological innovation.
“There’s also a group that is left behind. It’s a kind of Schumpeterian analysis, creative destruction. We often overlook the destructive part of the equation,” he added.
“Those people who are left behind are the Trump supporters,” he said. “This is a 55-year-old steelworker with two kids, who’s asking the question, ‘What happened to me? Why isn’t anyone concerned about me? Can I be retrained at 55?’”
“There are benefits to be derived from trade that Trump doesn’t understand. By and large, his attitude is one of a mercantilist. But Trump is also right to suggest that the trade has to be fair,” London judged. He asserted:
There’s no doubt that a lot of the trade agreements we’ve engaged in have not been fair. But if you’re looking at NAFTA and thinking of that as an illustration, I don’t think Trump is right. I think on the matter of NAFTA, more jobs were created within the United States than jobs were lost. The jobs that have been lost, as I’ve indicated, have been largely because of technological innovation.
London said he was not sure if Trump’s plan followed the “standard Republican playbook,” but he said, “It is a pro-growth policy, and I think a very sensible one.”
“Simplifying the tax code is a very important step forward,” he said. “Lowering the capital gains tax makes an awful lot of sense. Eliminating the deduction on carried trade sends a message to Wall Street.”
“I think that this is, by and large, a very, very good plan. And I think it’s not only a good plan; it’s a sensible plan for pro-growth,” London said, adding:
We’ve had the slowest recovery from a recession at any time in American history. So notwithstanding all the talk about what the Obama administration has done with low unemployment rates, I think what we really are talking about here is a very, very slow recovery that has left many Americans behind.
“Trump is right to talk about the forgotten American,” London contended. “The forgotten American is the guy who isn’t part of the equation that has led to economic growth. Financial services may be doing well, but a lot of manufacturing jobs have been lost.”
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