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Michael D. Purzycki's avatar

Regarding Yglesias and Luttwak: Yglesias makes the common mistake of blaming the Jones Act for the decline of American shipbuilding. The real culprit is Reagan’s decision to stop subsidizing shipbuilders. It’s an industry it’s a good idea to subsidize (unlike, say, corn). The Jones Act serves a national security purpose by giving US merchant mariners chances to practice their craft so they’ll be ready if they’re needed in a major war.

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Michael D. Purzycki's avatar

I’m one of the few people who thinks NAFTA was a good idea but PNTR with China was a mistake. The US *gained* manufacturing jobs throughout the mid and late 90s, including in Obama-to-Trump states Michigan, Ohio, Iowa, and Wisconsin. It wasn’t until China joined the WTO that the mass exodus began.

It can be good to liberalize trade with a smaller neighbor that can benefit from your close attention. You can even call it a noble act of charity even though you’re also getting low prices out of it. It’s quite another matter to liberalize trade with a colossus that’s looking to become your great geopolitical rival. That’s a national security risk even though you get low prices out of it.

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