Remember President Barack Obama’s annoying “You didn’t build that”?

Today I watched President Donald Trump “explain” how awful trade deficits are. In that explanation he basically said to China, “You didn’t build that.”

The line should still be familiar. Obama had purloined it from the lips of Senator Elizabeth Warren. With this argumentative gambit, these two politicians revealed themselves for what they are, demagogues out to fan the flames of resentment and entitlement. In trying to give to government the credit for the entrepreneurial accomplishments of businessfolk, they were honing an agenda: de-legitimize the achievements of the successful the better to take their wealth away.

But while Obama gave to government the credit for business successes, Trump gave America the credit for China’s.

His logic?

Trump said previous presidents had allowed China to get away with trade policies that disfavored the U.S. to such an extent that no future deal could be 50/50; then, that a deal had been made, but China changed it, so he put up the wall of high tariffs.

Next, Trump boasted of the huge increase in government revenues from his taxes, er, tariffs.

And then the kicker: “We rebuilt China because they got so much money” under freer trade.

That is how Trump had America take the credit for Chinese growth.

And he was more than implying that there is something wrong with Americans helping Chinese grow in this manner.

Trump seems not to understand that when people trade (it is not, really, countries trading) both sides gain. The farmers who support Trump can imagine selling more agricultural product had President Xi’s own protectionist measures been lower, and it is on the basis of those lost opportunities that Trump makes his pitch to American farmers. But it is Chinese consumers who have the greater cause to complain for past Chinese protectionism, for had Xi allowed more trade, China would have grown even faster. Because of all the exchanges. 

Like in all trade, neither side to a trade is irrelevant. China could with just as much justification take credit for American progress in all that past trade.

Every instance of which was an advance for both sides.

The Chinese built what they built, with American help. And could’ve built more had their government gotten out of the way.

And right now, with Trump’s high tariffs in place, American consumers will have to pay more for what we buy from China.

And elsewhere.

Trump is apparently trying to get Xi to take down his protectionist barriers by putting up American barriers. And if Trump succeeds, we do indeed all win. If he fails, we all lose. Meanwhile, we are hurting as much as the Chinese.

And what Trump is saying encourages resentment and economic superstition. So, even if he wins, what we may end up with is more resentment and a greater reservoir of protectionist sentiment in the American electorate.

And that almost guarantees disaster.

twv