Australia, Donald Trump, and Limited Government: Part II

June 5, 2019 by Dan Mitchell @ International Liberty

My Take - Once again, Dan presents sound advice to avoid the pitfalls and consquences of leftist insanity.  But one again, I find it difficult to agree with Dan on some of his points.  But, that's the problem with Libertarians, they mix great ideas that have sound historical foundations with delusions about trade and negotiations.  They believe in free trade, as do I, but the problem is the rest of the world only wants free trade with the United States as a one-way street.  Those who believe otherwise are delusional.  I agree with Trump's negotiations over tariffs and trade.  It's clear to me Trump understands the Bretton Woods era is over!  It's also clear to me the rest of the world needs a good smack in the mouth.  Then, and only then, will we come a lot closer to free trade. 

We have to get this.  In the coming worldwide economic crisis the only country that will remain stable is the United States.  Not Australia, Europe, China or Russia.  Many South American countries and backward nations in Africa and Asia won't feel much because they don't have or need much.  The fact of the matter is America is the only natural capital generating nation in the world because we have the resources, and geography.  America is the only advanced nation in the world that can feed itself, fuel itself, arm itself, defend itself and create it's own internal market without help or support from anyone else.  If the world wants to play on our economic game - they'll play by our rules or they won't play.     RK  

I had a chance to write about several interesting topics (Australian politics and policy, the economics of government spending, the structure of taxation) on my recent trip Down Under.

 

I also appeared on The Outsiders, one of Australia’s most popular political programs.

 

 

Here are a few links for those who want more information on some of the topics that were discussed.

Societal capital – I fear that there is a tipping point and that nations are doomed once people decide that it’s morally acceptable to use government coercion to live off the effort of others.

Demographics – Many nations face a built-in crisis because their redistribution programs are unaffordable now that people are living longer and having fewer children.

Social Security reform – It’s not pure libertarianism, but Australia’s system of private retirement accounts is vastly superior to America’s bankrupt tax-and-transfer Social Security system.

Socialism – It’s very troubling that many young people support the poisonous ideology of socialism, but I offered an optimistic spin that this doesn’t necessarily mean support for coercive statism.

Tax reform – Citing globalization as a driving factor, I couldn’t resist the temptation to spread the supply-side gospel of lower marginal tax rates on productive economic activity.

Donald Trump – As I’ve repeatedly pointed out, America’s president is an incoherent mix of good policies on tax and regulation mixed with bad policies on spending and trade.

Trade and protectionism – Speaking of trade, I argued that the trade deficit doesn’t matter and also suggested a sensible approach for dealing with China.

P.S. This interview was an encore performance. I also appeared on The Outsiders in 2017. Part of my plan to curry favor so that I can escape to Australia if (when?) America suffers Greek-style chaos.