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News Today: Paul Krugman: Trump Could Unravel One of FDR's Signature Achievements-News of the United States was founded in 1933 by David Lawrence (1888-1973), which also started the World Report in 1946. The two magazines are covering national and international news separately, but Lawrence combines them into news reports of U.S. in World and 1948 [1] and Later sold the magazine to its employees. Historically, this magazine tends to be a bit more conservative than the two main competitors, Time and Newsweek, and focus more on the story of economic, health, and education. It's also distancing news, entertainment and sports celebrities. [2] an important milestone in the history of the beginning of the magazine is including the introduction of the "Washington Whispers" column in 1934 and the column "News You Can Use" in 1952. [3] [4] in 1958, the circulation of the weekly magazine passed one million and two million in 1973. (wikipedia) News Today: Paul Krugman: Trump Could Unravel One of FDR's Signature Achievements
The president's latest proposal marks a return to the "bad old days" of the robber barons.
Shortly after Donald Trump was elected president, former Republican Speaker of the House Newt Gingrich bragged that Republicans would finally dismantle what's left of the "Franklin Delano Roosevelt model" of governance. More than a year later, they're well on their way to succeeding, having passed a comprehensive tax bill redistributing the nation's wealth from the bottom to the top and all but decimating the Affordable Care Act in the process. Now Trump is threatening to scrap one of FDR's signature achievements: reciprocal trade policy.
As Paul Krugman writes in his Thursday column, the president's newly announced tariffs on steel and aluminum are "arguably the Trumpiest thing Trump has done so far." Not only are they senseless (Trump has brayed about one-sided trade deals for decades, without even a rudimentary understanding of how they work), they're likely to prove incredibly destructive, triggering a trade war that hampers both the U.S. and global economies.
"There’s a reason we have international trade agreements, and it’s not to protect us from unfair practices by other countries," Krugman explains. "The real goal, instead, is to protect us from ourselves: to limit the special-interest politics and outright corruption that used to rein in trade policy."
What Trump either refuses to acknowledge or simply fails to comprehend, is that free trade doesn't pit nation-states against each other but individual businesses. As a result, Krugman argues, protectionism tends to benefit a handful of entities with the ear of the government at the expense of the country as a whole. Cronyism was practically American trade policy until Roosevelt passed the Reciprocal Trade Agreement Act of 1934, which reduced tariffs on foreign exports in exchange for a more favorable rate on our own.
"The overall effect of the evolution of the world trading system has been very salutary," Krugman continues. "Tariff policy, which used to be one of the dirtiest, most corrupt aspects of politics both in the U.S. and elsewhere, has become remarkably (though not perfectly) clean."
The president's latest proposal would mark a return to the "bad old days" of the robber barons. "But that won’t bother Trump," he concludes. "After all, we now basically have an Environmental Protection Agency run on behalf of polluters, an Interior Department run by people who want to loot federal land, an Education Department run by the for-profit schools industry, and so on. Why should trade policy be different?"
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