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Prof. Victor Menaldo in The Seattle Times, "Crony capitalism and protectionism are the despot’s way"

Submitted by Stephen Dunne on April 23, 2018 - 4:58pm

President Donald Trump is drifting towards an authoritarian approach to deal with his economy, just like what Mexico did, which are crony capitalism and trade protectionism. What this means is that he will help his favored industries out by providing exemptions from tax and regulations that everyone else had to abide by,  subsidies and extend cheap loans that taxpayers may have to pay. For his enemies, he will tax them, take away their resources, and hit them with antitrust suits because they are innovative and reduces the authoritarians' power. This is similar to what Mexico did under the Institutional Institutional Revolutionary Party (PRI) dictatorship.

For example, he imposed tarrrifs on steel and aluminum imports. This might benefit American steel and aluminum producers who don't reliy on foreign imports, it will hurt the aerospace industry, automobile makers, appliance makers, canned goods manufacturers, and the construction industry. All these will ultimately hurt the consumers since the industries will pass the high cost to us.
For the full piece please click here.