In a sharp critique, economist Brett Neiman, who had been unwittingly cited by Donald Trump regarding high global tariffs, claims the president flunked his maths. Neiman, an esteemed professor at the University of Chicago and former Treasury official, expressed his bewilderment upon the announcement of tariff rates, questioning the origins of such inflated figures.
Upon the release of the methodology by the Office of the U.S. Trade Representative, Neiman found himself at the centre of a misinterpretation: the administration supported their calculations with his research, but Neiman asserts they completely misrepresented the findings. He fundamentally disagrees with Trump’s trade policies, stating that the tariffs should be much lesser—potentially only one-fourth of what was proposed.
Neiman identifies multiple flaws in Trump’s approach, notably the attempt to calculate “reciprocal tariffs” aimed at addressing trade deficits with other nations, arguing that such balances are inherent and unavoidable in international trade. He highlights that Americans naturally spend more on imports than what foreign countries spend on U.S. goods, thus pointing to the absurdity of using deficit numbers as a measure of unfair competition.
The economist further illustrates his point with a humorous analogy from Nobel laureate Robert Solow, who described a personal deficit with his barber that mirrors the larger trade dynamics. Neiman criticises the methodology as misleading and asserts that eliminating trade deficits could be counterproductive. Even when adjusting for the government’s tariffs, he finds the calculations inappropriate.
While the White House claims Neiman’s work as an endorsement, he questions the arbitrary nature of the proposed 25 percent tariff rate. He warns of the global repercussions stemming from Trump’s faulty calculations, which have already begun impacting the economy severely. With markets reacting unfavourably and bipartisan discontent among representatives, the economic situation has become precarious. Neiman believes this tariff policy needs a complete overhaul and suggests a significant reduction in the proposed rates.
Neiman’s concerns are echoed widely, reflecting a growing discomfort with Trump’s trade methodology, which he fears will yield damaging consequences for workers, firms, and consumers alike.
Economist Brett Neiman criticises Trump’s tariffs, stating the calculations are severely misguided. He argues that the tariffs are based on false premises regarding trade deficits and calls for a substantial reduction in their proposed figures. Neiman’s findings suggest potential catastrophic consequences for the global economy if the current policies persist.
In conclusion, economist Brett Neiman’s robust critique of Donald Trump’s tariff strategy reveals significant flaws in its calculations and methodology. By illustrating the natural dynamics of trade deficits and questioning the legitimacy of Trump’s proposed tariffs, Neiman calls for a fundamental reassessment of the administration’s approach. Given the profound implications of these tariffs on the economy, legislative leaders from both parties, along with economists, are voicing dissent against the current trajectory of U.S. trade policy.
Original Source: www.thedailybeast.com
