John Stossel‘s latest column at Human Events focuses on what politicians know that just isn’t so about economics.
Hillary Clinton: “Of course we want to raise the minimum wage!”
Donald Trump: If we trade with China, “they suck us dry … take everything. We get nothing!”
Bernie Sanders: “Ordinary Americans are working longer hours for lower wages.”
But it’s not true! Politicians are so ignorant about economics.
On his blog, Cafe Hayek, George Mason University professor Donald Boudreaux says his main job is showing students that much of what they believe about economics is wrong. I wish he taught presidential candidates.
Sen. Sanders simply gets facts wrong. Today Americans work fewer hours — down from about 2,000 hours per year to 1,800 over the past 60 years — and earn more. It’s true that the rich got even richer, but the poor and middle class have done better, too, with about 40 percent higher salaries for the middle class and 48 percent more for the poor over the past 35 years. Politicians lie.
Donald Trump doesn’t understand trade. Even if China “dumps” goods on America, we don’t “get nothing” — we get the goods. As Trevor Woolley posted on my Facebook page, “The fact that the free market is based on consensual transaction means that no trade can decrease anyone’s wellbeing.”
Right. Since trade is voluntary, no trade happens unless both sides think they will gain. Trade may eliminate jobs in some industries, but it creates jobs elsewhere, more jobs, and creates wealth for the vast majority.
