Eric Boehm: How Protectionist Trade Policies Screw Us All

The host of Why We Can't Have Nice Things explains how indefensible tariffs cause baby formula shortages, screw Hawaii residents, and increase traffic in the Northeast.

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Eric Boehm: How Protectionist Trade Policies Screw Us All

My guest today is Eric Boehm, a reporter at Reason who specializes in economic and trade policy. He's also the host of a fantastic, new six-part podcast series, Why We Can't Have Nice Things. Each episode looks at different ways that import and export laws and other sorts of mostly hidden regulations radically alter what we can buy, how much things cost, and how many options we have.

In one episode, Eric explains how the great baby-formula shortage of 2022 was vastly exacerbated by insanely stupid trade laws. Another episode explores why imported women's underwear is taxed at higher rates than men's underwear—and then there's one that shows how frozen chicken is being held hostage to decades-old trade wars. (All the episodes will be released over the coming weeks.)

It's an incredible podcast series that you should subscribe to here, or wherever you get your podcasts. I also talk with Eric about how growing up in eastern Pennsylvania and being raised Catholic shapes and informs his worldview, his politics, and his reporting, long after he has left behind both the Keystone State and weekly attendance at Mass. We also talk about the 2024 election season and what, if anything, he's looking forward to.

Today's sponsors:

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• Why We Can't Have Nice Things. A six-part Reason magazine podcast series about the frustrating and foolish aspects of American trade policy that make everyday items more expensive. From last year's sudden shortages of baby formula to the Jones Act and President Lyndon Johnson's infamous "chicken war," host Eric Boehm sits down with industry experts and libertarian policy wonks to explore how these counterproductive rules got made—and explains why they can be so difficult to undo.

Comments

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[TJJ2000]

Only for you and sqlsy. The rest of us care more about WHY than WHO.

[Unicorn Abattoir]

Dude. That looks like an 8th grade school photo.

[SRG2]

Or a screengrab from an 80s sitcom

[Unicorn Abattoir]

Well there's certainly some Headroom there!

[Don't Cite Me Bro]

When will Eric do analysis on ignoring anti free market actors and the negative consequences? Or did he never make it past econ 101? There are plenty of AI games the last 40 years revolving around complex trade theory. The programs designed on pure principles and not accounting for bad actors always lose.

Also why does he keep blaming tariffs for the baby food shortage when it was FDA labeling requirements that did not allow the importation of the powder? Tariffs could be 0 and they still wouldn’t be allowed to be imported. Almost like Eric starts from a premise and works backwards.

[Dillinger]

>>why imported women's underwear is taxed at higher rates than men's underwear

sexy tax

[Unicorn Abattoir]

Or because more men wear women's underwear than women wear mens?

[TJJ2000]

Call me when domestic trade is "free".

[sarcasmic]

Do you pay a tariff on wine from another state? No. You don’t. That’s because the United States is a free trade zone between the states. That’s the proper application of the infamous Commerce Clause.

[TJJ2000]

Are importers paying all the taxes US production is for their foreign made goods? Employee taxes, Manufacturing taxes, Permits, Fuel taxes, Property taxes, Energy Taxes (the list is endless).

If not; then domestic is funding a national government who’s purpose is for international affairs which is largely utilized for international trade. What’s even worse is that before the Trump administration domestic was subsidizing imports. Charging domestic a tax to subsidize imports.

Name it what you want; Tax is tax.

[sarcasmic]

Are importers paying all the taxes US production is for their foreign made goods? Employee taxes, Manufacturing taxes, Permits, Fuel taxes, Property taxes, Energy Taxes (the list is endless).

I'm sure they pay taxes at home.

If not; then domestic is funding a national government who’s purpose is for international affairs which is largely utilized for international trade.

I don't understand what that means.

What’s even worse is that before the Trump administration domestic was subsidizing imports.

Paying taxes to make imports cheaper? How and when?

Charging domestic a tax to subsidize imports.

I truly do not understand. Unless you're using Tony Logic: not taking is giving and not giving is taking.

[NOYB2]

I’m sure they pay taxes at home.

No, they don't. To the contrary, they are subsidized by foreign governments that use trade to harm the US.

[TJJ2000]

"domestic is funding a national government who’s purpose is for international affairs which is largely utilized for international trade"

That's pretty straight forward. Taxes fund government. The purpose of a national (union of states) government was for nation defense and international affairs. International trade being part of that.

"Paying taxes to make imports cheaper? How and when?"
https://reason.com/2019/11/11/american-taxpayers-are-subsidizing-ultra-cheap-shipping-from-china/

[NOYB2]

Tariffs amount to 2% of tax revenue. The distortionary effect they have on markets and society is negligible. So, stop whining and complaining.

Worry about stuff that matters: the Fed, income tax, capital gains tax, and corporate tax.

[hatchhozzen]

When will Eric do analysis on ignoring anti free market actors and the negative consequences? Or did he never make it past econ 101? There are plenty http://www.networkdig.com of AI games the last 40 years revolving around complex trade theory. The programs designed on pure principles and not accounting for bad actors always lose.

[micheal5253]

When will Eric conduct an analysis considering the impact of disregarding actors opposed to the free market and the resulting negative consequences? Has he perhaps not progressed beyond an introductory economics course? Over the last four decades, numerous AI games have focused on intricate trade theories, revealing that programs based solely on pure principles without accounting for bad actors consistently face losses. Additionally, Eric's attribution of the baby food shortage to tariffs is misleading, as the real issue lies in FDA labeling requirements preventing the importation of the powder. Even with tariffs set at zero, the importation would still be prohibited. It seems like Eric starts with a predetermined premise and works backward in his arguments.

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