Gongol.com Archives: June 2018
China's ambassador to Australia accuses the Aussies of having a "cold war mentality". Nevermind that Australia has more than adequate reason for concern over Chinese influence campaigns (attempting to manipulate elections and even local-level governments) and abundant cause for concern over China's aggressive posture in the South China Sea. Look for this rhetorical tactic to show up again and again: A sort of geostrategic gaslighting.
What is being done in our name as a country merits protests to Congress. As John Stuart Mill wrote: "A civilization that can thus succumb to its vanquished enemy [barbarism] must first have become so degenerate, that neither its appointed priests and teachers, nor anybody else, has the capacity, or will take the trouble, to stand up for it."
The demand for happy talk is endless, but economics requires grappling with cold, hard reality. We not only have a shortage of tools for stimulating an economy gone bad, we also have politicians bent on doing things that will actively make the economy worse. And with politicians engaging in a "lurch toward protectionism", the anxiety created by today's dumb behavior in a fair economy will linger even after we muster the will to turn back away from protectionism and re-embrace free trade. Much of the damage is done just by the threat. In the words of Milton and Rose Friedman, "Competition in masochism and sadism is hardly a prescription for sensible international economic policy!" Tit-for-tat tariffs are madness.
Really taking the "industrial" out of the "Dow Jones Industrial Average", aren't we? Creative destruction is a cruel thing.