Carlos Velazquez

I watched an interview about JD Vance, and it was mentioned that Ronald Reagan was actually a protectionist, not a free trader. This surprised me because I always thought Reagan supported free trade. I was wrong. I also changed. I used to believe that free trade without any restrictions was always the best approach. Now I understand that this isn’t always the case. Sometimes, especially when national security or the general welfare of the nation is at risk, strict adherence to philosophical principles must yield to practical considerations.

Therefore I did some research. >>>>>>>>

Ronald Reagan, while advocating for free-market principles, implemented several protectionist measures during his presidency, leading to the perception of him as a protectionist rather than a free trader. Key actions contributing to this view include:

1. Imposing Tariffs and Quotas: Reagan imposed tariffs and import quotas on several industries, notably steel, automobiles, and motorcycles, to protect domestic industries from foreign competition. For example, in 1983, he imposed quotas on Japanese car imports to support the U.S. auto industry.

2. Voluntary Export Restraints (VERs): Reagan negotiated voluntary export restraints with countries like Japan, limiting the number of goods (such as cars) they could export to the United States.

3. Supporting Domestic Industries: Reagan supported the domestic semiconductor industry by imposing tariffs and trade restrictions to counter perceived unfair practices by foreign competitors.

4. Strategic Trade Policy: His administration used strategic trade policy to support key industries deemed vital for national security and economic competitiveness.

These measures, aimed at protecting American jobs and industries, contrasted with the free trade principles of minimizing government intervention in international trade. As a result, Reagan's actions often reflected a pragmatic approach to trade, balancing free-market ideals with protectionist policies when economically necessary.

Tim adds:

You're right Carlos. Reagan was not the anarcho-trading champion he is portrayed as now.

That was part of why he fell out with David Stockman. Not the sole reason but part of it. (Stockman wanted no trade restrictions, among other things, and Reagan just wasn't willing to do that.)

You can't do free trade with an unfree trader. It's like keeping your marriage vows to a serial adulterer.Somebody is getting mistreated and it isn't the adulterer.

Posted by: Timothy Birdnow at 10:11 AM | Comments (2) | Add Comment
Post contains 375 words, total size 3 kb.