The Volokh Conspiracy
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My New The Hill Article on How Trump and Harris Cater to Political Ignorance
Both propose awful economic policies that appeal to public ignorance.

Today, The Hill published my article entitled "Both Donald Trump and Kamala Harris are Preying on Political Ignorance." Here's an excerpt:
There are many differences between Donald Trump and Kamala Harris. But one crucial similarity is that both have proposed terrible economic policies that have political appeal because of widespread voter ignorance.
Trump has proposed both large-scale tariff increases and mass deportation of undocumented immigrants. Harris' plans include price controls and rent controls. All would cause great harm if enacted, but candidates advocate them because much of the public doesn't understand the damage such policies bring with them.
Such misunderstandings are part of a broader problem of widespread voter ignorance about government and public policy….
Trump has proposed a 10 percent tariff on virtually all imported goods. This would predictably increase prices on a wide range of products, costing the average American family roughly $1,700 per year. The economic damage will increase if foreign governments retaliate against American exports, as they likely would. In addition, because many American industries rely on imported inputs, tariffs often destroy jobs and cause shortages…..
The harmful effects of tariffs are the subject of a broad cross-ideological consensus among economists. Yet tariffs often get support from voters if presented as a way to save American jobs….
Trump's mass deportation plans would cause similar harm. Undocumented immigrants are important contributors to many sectors of the economy. Mass deportation would predictably create disruption, increase prices and cause shortages. Deportations also destroy more American jobs than they create… Such effects would be exacerbated by Trump's plans to massively cut legal immigration, as well…
As with free trade, there is broad agreement among economists on the beneficial economic effects of immigration. But many voters don't understand that…
Meanwhile, Kamala Harris has tried to assuage voter concerns about high prices by promising to impose price controls to prevent "price gouging" in grocery sales. She has also endorsed President Biden's plan to limit many housing rent increases to no more than 5 percent per year…
Price controls have a long history of causing shortages, including in the U.S. during the 1970s. When government artificially restricts prices, producers have less incentive to increase supplies in response to increasing demand. The same is true of rent control, which numerous studies consistently show exacerbates housing shortages.
Economists across the political spectrum agree here, too. Jason Furman, chair of Barack Obama's Council of Economic Advisers, notes that "[r]ent control has been about as disgraced as any economic policy." Nonetheless, polls indicate that both rent control and price controls more generally are often popular with voters. That is partly because a majority of the public wrongly believes that high prices are caused by "corporate greed…."
Extensive support for these terrible policies is part of a broader pattern of widespread political ignorance. Decades' worth of data show that most voters know very little about government and public policy. For example, surveys show only about one-third to a half of Americans can even name the three branches of government.
Political ignorance is perfectly rational for most voters. If your only reason for following politics is to be a better voter, that turns out to not be much of an incentive at all, because there is so little chance that your vote will actually make a difference to the outcome of an election (about 1 in 60 million in a presidential race)….
The danger of ignorance isn't just that it leads voters to choose the "wrong" candidate. It's that it incentivizes both parties to promote harmful policies that cater to ignorance. Not all bad policies are caused by ignorance, but voter ignorance does facilitate some terrible policies that a better-informed electorate would reject.
The last part of the article briefly describes some possible ways to mitigate the negative effects of public ignorance, a subject I address in much more detail in a recent academic paper on "Top-Down and Bottom-Up Solutions to the Problem of Political Ignorance," and in my book Democracy and Political Ignorance: Why Smaller Government is Smarter.
I previously wrote about how public ignorance is impacting the 2024 election here.
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Still a man hears what he wants to hear and disregards the rest...
Clearly the public is ignorant about what the government can and cannot do but that is the way politicians want it. It is easier to promise things to the public than to speak to the public truthfully. I have seen politicians try the honest approach, but I have never seen the honest politician get elected.
Maybe a good start would be getting back to basic in education.
Too many students today come out of 12 years of schooling innumerate and have no idea what government can (and is allowed to) and cannot do.
How could they do otherwise?
The harmful effects of tariffs are the subject of a broad cross-ideological consensus among economists.
Probably because such economists assume the tariffs are stand alone. If 10% across the board tariffs raise say $200 billion in tax revenue, then that allows other taxes to be lowered by $200 billion.
The harm of the former is offset by the benefit of the latter. Maybe the offset is less than 100%, depending on which other taxes get cut. Maybe it's more.
Since the feds don't levy a national sales tax, most likely it would be federal income tax that could be cut. And taxes on income are typically more destructive of production than taxes on consumption.
Lee,
The harmful effects economists point out have zip to do with taxes.
They include things like a less productive economy (we have to make things we would be better off buying), and retaliation from trading partners, reducing our exports and further damaging our economy.
Sure - there are certainly particular bad effects of tariffs, such as interfering with free market choices on production and consumption as between domestic and foreign goods.
But all taxes have bad effects. The question is whether tariffs raising $x in tax revenues have more of a bad effect than other taxes raising $x. And that is a much harder question than simply saying tariffs have bad effects.
Tariffs have bad effects is no deeper an insight that saying that the $40.52 you spend in the grocery store is a reduction in your wealth. Well yeah, it is.
Indeed. Let’s take the hypothetical example of Widget A.
Let’s pretend just one country, Canadia produces Widget A. And any consumer in the US that wants to buy it must buy the imports from Canadia.
If the US charges a 10% tariff on imports from Canadia, versus a 10% sales tax on Widgets, the effect is exactly the same.
In fact, the tariff may be a better tax in this case, as it is more difficult to avoid.
What a shitty tariff it it produces no change in behavior.
Once again, further analysis is beyond you, little antisemite.
On the contrary, its is why a tariff and a sales tax are not the same.
Despite being bitch-slapped repeatedly about your lies regarding Sarcastr0, you continue to try and spread them because you're an unprincipled piece of shit.
To be fair to Armchair, he doesn't only lie about Sarcastro. He lies about everything.
Monday's open thread was full of Armchair lies. He tends to run away like the childish person he is when, as in Monday's open thread, he is shown to be talking entirely out of his ass. He's a dishonest troll. Nothing more.
little antisemite
Armchair - We got an open thread tomorrow - sometime in the morning start a thread calling me out for being an antisemite, along with your evidence.
Because I'm pretty sure you won't.
You know you're in the wrong and persist just because you're a jerk.
Tell you what. Why don't you start the thread. And you can point to past evidence where you've supported the Jews.
Go into every thread, and show us where you've supported the Jews and Israel, as opposed to the other side.
the effect is exactly the same.
From the buyer's point of view it looks the same. You want to buy a $10 widget? Sorry, you need to cough up an extra buck in tax.
But there is a difference. The tariff doesn't hit domestic production, while the sales tax does, so the tariff gives US producers an edge on the Canadians, and might lead to some widget production here.
Does that make it a good idea? No. Because the reason we buy them from Canada is that Canada has a comparative advantage in widget production. Switching US resources from whatever they are being used for to widget production is less efficient than just importing the damn things.
Further, Canada might not just shrug its collective shoulders. It might decide a tariff on some goods they import from us would be a good idea. Then the spiral starts.
Your points are excellent. The distortions to economic efficiency make them worse than just a straight sales tax unless you make entirely unrealistic assumptions (such as Canada would be the only supplier even with the tariff and that Canada would just meekly accept tariffs on their goods without tariffs on U.S. goods). Also, they negatively impact foreign relations which, of course, Trump and Trump apologists don't understand at all.
Of all the ideas Ilya rightly marks as economically wrong-headed, tariffs and mass deportations are easily the worst. Both have very long-term consequences even if later reversed. And the mass deportations are cruel and will, necessarily, result in outrageous injustices. At least the others are mostly purely economic and stay within U.S. borders, so don't erode our international standing and reduce worldwide wealth (like tariffs and mass deportations, both of which take advantage of comparative advantage, the first for goods/manufacturing, the second for labor).
But, of course, the first thing we get are idiots defending tariffs. And not just any tariffs, basically across the board tariffs in the nature of a declaration of trade war. Absolutely stupid.
But this ignores another rather critical issue: Suppose the widget is currently being purchased not from Canada, a long time ally, but instead China, a geopolitical adversary? And said widget is economically essential?
In that case, importing the widget, instead of relying on domestic production, isn't simply an economic decision. It's also a military decision.
Suppose we'd decided, purely on the basis of economic efficiency, to be dependent on Germany for steel production. WWII would have gone rather differently, no?
I’m in theory in favor of tariffs specifically for the narrow purpose of national security. But
1. considering how many of our raw materials come from outside the US, I can’t imagine tariffs would have much material effect
2. We already have and use more direct controls like CFIUS and BABA.
But your scope is vastly expended from national security. ‘Economically essential’ is really letting markets down as the innovative engines they are.
And economics are not actually within the realm of military import. That’s some amazing mission creep for the DoD.
Brett,
You assume tariffs are the only, or at least the best, method of boosting/ensuring domestic production. That seems suspect at best and, really, almost certainly wrong.
There are other methods which don't raise the price of the thing that is essential to our military/economy (which seems a counterproductive thing to do) and which don't spark trade wars (which is just another way of imposing new, haphazardly applied (from our perspective) taxes on other goods and undercuts our industrial base, quite possibly wiping out any benefit you got from the boost in adopting U.S. tariffs in the first place).
The question is whether tariffs raising $x in tax revenues have more of a bad effect than other taxes raising $x. And that is a much harder question than simply saying tariffs have bad effects.
But the tax effects, and particularly the effects on government revenues, which is where you started, are not a part of the general "tariffs are bad," argument, which does, in fact, have some specific points, a couple of which I mentioned.
Indeed, you started out by saying that economists' unfavorable view is based on their misunderstanding of tariffs and taxes, which is plainly wrong. Anyone claiming that economists as a group have overlooked a simple, obvious point, is going to be wrong virtually always.
I think you ae misunderstanding my point.
I'm saying that economists saying tariffs are bad are right. I'm sure they would also agree that sales taxes are bad, income taxes are bad, wealth taxes are bad. They're all bad for various reasons - ie the reasons why tariffs are bad are different from the reasons why income taxes are bad. So we, or at least many of us, could each write a short essay on the evils of tariffs. Or the evils of income tax. The essays would be different. Different evils would be described. I'm not saying that economists have got the evils of tariffs wrong. I'm saying that their essays on the evils of tariffs are only half the story.
The point is that the policy question is not tariffs simpliciter. It's {tariffs plus something} the something being whatever you do with the revenues that tariffs yield. Which might be lower borrowing or more spending or a reduction in some other tax.
I tend to agree that you and NOVA are probably right that {tariffs plus lower sales taxes} would probably be a net negative because of the interference with comparative advantage. But as the US doesn't have a national sales tax, that's not an option. But {tariffs plus lower income tax} is a harder question.
Anyway the point I am making is that gross cost is a dumb thing to measure and to use to guide policy. You have to pay attention to opportunity cost.
"I’m sure they would also agree that sales taxes are bad, income taxes are bad, wealth taxes are bad. They’re all bad for various reasons"
I'm sure you're wrong, because economists cannot be so stupid to think the government needn't be funded.
"The point is that the policy question is not tariffs simpliciter. It’s {tariffs plus something} the something being whatever you do with the revenues that tariffs yield. Which might be lower borrowing or more spending or a reduction in some other tax."
The point of tariffs generally isn't to raise revenue. That's a side effect. And it's an economically inefficient way to raise revenue. So, no, it hardly matters what you do with the revenue raised from tariffs, the distortions (both by the original tariffs and the retaliatory tariffs) make the economy (U.S. and world) worse. That is so even if you reduce income taxes by precisely the amount of revenue raised by tariffs. Why? Because income taxes don't distort the economy in the same way and the distortion is not as economically inefficient and, importantly, doesn't ripple across international borders.
(Income taxes do, in some sense, to some degree, discourage labor and investment, but it's across the board rather than favoring certain industries and they don't disrupt international markets the same way. I'm open to the idea that they aren't the optimal way to fund government, but they are far, far superior to tariffs.)
I hope you noticed that you underlined my point. You considered the net effect of income taxes and government spending financed from them. You did not consider income taxes on their own.
As for the rest of your spiel, well it's ipse dixit. Which is fine, I can hardly expect you to do a full econometric analysis for me on the VC comments pages.
As to the point of tariffs, revenue rising is certainly one of them. And they do raise revenue.
I agree that income taxes distort the economy in a different way from tariffs. Which is better and which is worse overall requires further work that neither of us is willing to put in at this point.
Obviously the most important answer is that all taxes distort the free market workings of the economy, and so reduce production and consumption. Which is why tax cuts are such a good idea. Which is why spending cuts are such a good idea. In terms of economic distortion both taxes and government spending are distorting. For those of us who see the value in free markets, cutting both is a win win.
"Which is better and which is worse overall requires further work that neither of us is willing to put in at this point."
Fair enough, though I've stated my rather strong opinions on that which has the backing of most economists. But, you're right, that's hardly doing to work required to make a compelling case.
"Obviously the most important answer is that all taxes distort the free market workings of the economy, and so reduce production and consumption. Which is why tax cuts are such a good idea. Which is why spending cuts are such a good idea. In terms of economic distortion both taxes and government spending are distorting. For those of us who see the value in free markets, cutting both is a win win."
I'll say this is, at least, a very libertarian take on a blog with purportedly libertarian leanings.
I strongly disagree with you as I think it's self-evident that tax cuts and spending cuts are not inherently good. I don't want, among other things, a free market-based (private) army, justice system, or police force. Ergo, at least some taxes are good and at least some spending is good.
I strongly disagree with you as I think it’s self-evident that tax cuts and spending cuts are not inherently good.
I agree. It depends on your value system. I merely make the point that given the measuring rod of market distortion - which is what y'all wanted to use for tariffs, tax cuts plus spending cuts are a clear win-win.
But there are other measuring rods. So, for example, tariffs and supporting home production are quite useful when you are using a military preparedness measuring rod. You want to keep enough of your industrial base to be able to ramp up arms production in a crisis.
Within reason, of course. A lot of Moustache Man's procurement problems in WW2 stemmed from his autarchic pre war economic policy. Moderation and common sense in all things.
I'm not a fan of tariffs myself, but how bad they are compared to the "somethings" they must be weighed against is not such a slam dunk as to merit a "political ignorance" label. It also depends on who you are. The USA is in a much stronger position to levy tariffs than is Taiwan.
at least some taxes are good and at least some spending is good
That we can certainly agree on.
"I merely make the point that given the measuring rod of market distortion – which is what y’all wanted to use for tariffs, tax cuts plus spending cuts are a clear win-win."
You seem to miss something. Tariffs distort the market in a bad way. Tax cuts may or may not. Spending may or may not.
Sin taxes, for example, distort the market for cigarettes, but probably in a good way by discouraging use of an addictive, dangerous product. If not that, then you can choose your vice that is bad for the country. Some things should be encouraged.
Likewise, spending on the interstate highway system distorted the market in good ways.
So, no, using only the metric of market distortion (which isn't, actually, the metric "ya'll" wanted), taxes aren't always bad, spending cuts aren't always good.
Even with your relocated goalposts, the assertion that tax cuts and spending cuts are win-win is not accurate.
using only the metric of market distortion (which isn’t, actually, the metric “ya’ll” wanted)
Let’s go the tape :
bernard : They include things like a less productive economy (we have to make things we would be better off buying)
bernard again : Because the reason we buy them from Canada is that Canada has a comparative advantage in widget production. Switching US resources from whatever they are being used for to widget production is less efficient than just importing the damn things.
NOVA (that’s you btw) : The distortions to economic efficiency make them worse than just a straight sales tax
NOVA again : like tariffs and mass deportations, both of which take advantage of comparative advantage, the first for goods/manufacturing, the second for labor).
Moving on :
Sin taxes, for example, distort the market for cigarettes, but probably in a good way by discouraging use of an addictive, dangerous product.
Of course if you change the metric to “distorting the market in a way that I think is bad” you’re going to get a different answer from “distorting the market period.”
But all those economists lined up to rail against tariffs are using the latter metric – and both you and Bernard mention – “comparative advantage” explicitly. That doesn’t consider the “goodness” or “badness” of any interference with unimpeded effects of market transactions. The whole point of it is that producers and consumers optimize their welfare (as measured by themselves) by making their own decisions about what does and does not have value. Your measures of someone else's welfare are irrelevant under a free market metric.
Agreed
There's a lot wrong with Ilya's post, but the one that initially stands out here is the use of "political ignorance" as incorrect.
Many of these concepts people understand, but they don't necessarily agree with the opinions that Ilya presents. But if they don't agree with them, Ilya just sweeps it under the rug as "ignorance".
Because it is ignorance. There are very few people with even mildly informed opinions who disagree with, for example, the economic effects of tariffs or rent control or mass deportations. Thus, the discrepancy between an overwhelming number of economists holding one few and a large number of ignorant people holding an opposite view is, in fact, their ignorance.
And you've demonstrated your ignorance in this thread, so we can safely put you in the basket of the ignorant on tariffs, at least. You are the ignorant voter to whom Ilya is referring.
You still going on about Unicorn assassins?
Still lying? But the question answers itself. You're Armchair. It's what you do.
Has any politician ever NOT catered to public ignorance?
George H.W. Bush raised taxes despite his prior cave to public ignorance (his "no new taxes" was a pathetic pander to public ignorance). He showed character in doing what was right by raising taxes, but got penalized for reneging on his earlier pander.
There's a lesson there.
Unfortunately, the one taken away by Republicans, especially, was to pander more, not less. Hence, George W. Bush and Donald Trump promising ever more tax cuts and claiming the tax cuts will pay for themselves and they'll balance the budget. The only true thing is they did cut taxes which destroy the budget and, by increasing the U.S. debt burden, strangle our future economic growth.
Thank you for a point I have tried to make many times. If you borrow money for a tax cut it is spending.
You are exactly right. It is. Economically ignorant people don’t get it. And others, who do get it, think they can “starve the beast.” Won’t work, hasn’t worked. That’s just given us runaway deficits.
It’s not that a balanced budget amendment is a good idea, because there are times, maybe even lots of times, when it makes sense to run a deficit. But roughly matching revenues to expenditures is imperative, particularly in good economic years (remember 2017-2019 when we had “the greatest economy ever”, but deficits ballooned because we had a me-first president willing to pander to your last dollar?), so that you can run significant digits in crises like the 2009 Great Recession or the 2020 pandemic.
There's reasonable debate about whose budget decisions were the worst ever, George W. Bush or Trump (both changed the deficit trajectory they were handed), but I think Trump walks away with it. His deficits dwarf anyone else's....and during relatively good (but not greatest ever) economic times.
"remember 2017-2019 when we had “the greatest economy ever”, but deficits ballooned because we had a me-first president willing to pander to your last dollar?"
I remember 2017, when we had a President who proposed some spending cuts, and Congress responded with spending increases enacted with a veto-proof majority. Is that the 2017 you're talking about?
I will agree that I'd have preferred that he kept proposing spending cuts, and issuing vetoes that got overridden by Congress, instead of just giving up the way he did.
The 2017 when Republicans controlled the House, the Senate, and the Presidency? Yes. Precisely that 2017.
No it isn't, it's borrowing.
The problem with GOP politicos is not that they cut taxes, but that they increase spending, never mind failing to cut it.
No, the problem with the GOP is, in fact, that they cut taxes even in economic good times as a pander to the ignorant, always with a promise that the tax cuts will pay for themselves when they never have and never will. Then, they also increase spending which, combined with the tax cuts, absolutely demolishes the deficit.
Meanwhile, Democrats almost always take the very unpopular, but fiscally sound, position that they will raise taxes, even if they tend to downplay it.
Reagan realized he’d cut taxes too much and, to his credit, agreed to a tax hike. Unfortunately, H.W. Bush’s unwise “no new taxes” pander has led to the point where, for Republicans, tax cuts in good times and in bad times, in war and in peace, rain or shine, tax cuts all the time. Tax cuts are the GOP snake oil sold as a cure-all.
You need to read Laffer's book on the impact of reducing marginal tax rates.
"Trump has proposed a 10 percent tariff on virtually all imported goods. This would predictably increase prices on a wide range of products, costing the average American family roughly $1,700 per year."
You assume that this is a tax increase -- that it isn't offset by decreases in other taxes or (perish the thought) a reduction in debt.
What people don't realize is that prior to the income tax, the vast majority of Federal tax revenue came from import duties.
The economic damage will increase if foreign governments retaliate against American exports, as they likely would.
As we have a trade deficit, they will be hurt worse than we.
"In addition, because many American industries rely on imported inputs, tariffs often destroy jobs and cause shortages"
Perish the thought that we have a domestic supply chain -- we used to....
"Trump's mass deportation plans would cause similar harm."
No it wouldn't -- Americans would line up for those jobs. As HAS happened after major public INS raids in the past.
Undocumented immigrants are important contributors to many sectors of the economy."
Bullshyte.
Cheap labor ain't cheap.
Mass deportation would predictably create disruption, increase prices and cause shortages.
And create opportunities for entrepreneurs. CREATING jobs...
Deportations also destroy more American jobs than they create…
Not possible.
No American has a job because Illegal CRIMINAL Aliens are stealing other American's jobs...
"Americans would line up for those jobs."
LOL. There aren't the U.S. workers with the desire and skills to replace millions of undocumented immigrants. All your other points are just as misguided.
"Deportations also destroy more American jobs than they create…
Not possible."
LOL. It's very possible. In fact, it's certain. Go read something other than political news.
What people don’t realize is that prior to the income tax, the vast majority of Federal tax revenue came from import duties.
What Dr Ed doesn't realise is that both the Federal government and the nature of national and global economies have changed.
Americans will not line up for those jobs. That experiment was tried in Alabama and indicated that people would rather remain on welfare than do honest work in the Alabama Sun.
Exploiting illegal aliens to keep prices low is unethical. Prices are kept low by employers paying low wages to illegal aliens who are afraid to complain for fear of being deported.
what a ridiculous thread.
Harris has not proposed price controls.
She has proposed an expansion of protections against price gouging, which are already on the books in many states.
But that is not, in any way, a proposal for price controls.
What's wrong with you people?
"Price gouging" isn't a thing. Limiting how much a business can charge is in fact price controls.
Thank you very much
Bullshyte. In the time honored tradition of politicians, she is promising things she has no intention of doing.
What a great discussion of price controls. Kudos to all who participated.
I hate to have to tell you that Kamala Harris didn't propose price controls.