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95 sats \ 4 replies \ @SimpleStacker OP 13h \ parent \ on: Mini Pleb Economist: Quick analysis of tariffs econ
the expected welfare loss from going all the way to autarky is only about 3%
Eh, that's almost certainly wrong...... right? right?
There are certain things we just don't have the natural or human capital to make on our own
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30 sats \ 3 replies \ @Undisciplined 13h
Are those things worth 3% of economic activity?
I'm also sure it's wrong, btw, but the basic point that America can get along perfectly well without unfettered free trade is probably correct. Most likely we wouldn't even be reduced to a European or Canadian standard of living and we aren't going anywhere near full autarky.
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61 sats \ 0 replies \ @Jer 7h
You keep my standard of living out of this, sir. 😂
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33 sats \ 1 reply \ @SimpleStacker OP 13h
Yeah I agree that the panic isn't justified. Though I do think even if what you say is true, there will be a painful adjustment period.
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30 sats \ 0 replies \ @Undisciplined 13h
Yep. That's a prediction from general equilibrium models, which know nothing about the path to equilibrium.
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