As everyone knows, we are in a trade war of sorts with China over imports, exports and tariffs. There is one area, usually overlooked in these discussions, that has been growing rapidly – and in our favor: tourism.
Tag Archives: China
No More Kid Gloves. What do the internet and China have in common? For better or for worse, policymakers are no longer treating them with kid gloves. This past week, the Supreme Court reversed a decision made before the dawn of the internet that prevented states from taxing sales to their residents unless the business had a “physical presence” in the state. Now, each state gets to decide whether those sales get taxed.
Thoughts on Trade. “Economic nationalists” from both sides of the political aisle think this situation is unsustainable…Running a trade deficit means the US gets to buy more than it produces. In turn, we have this ability because investors from around the world think the US is a good place to put their savings, leading to a net capital inflow that offsets our trade deficit.
Trade Is Not Our Enemy. Art Laffer said it best… Let’s say the US invented a cure for cancer and China a cure for heart attacks. If China decided to ban the cure for cancer, should the US retaliate by banning the cure for heart attacks?