'Trade wars have only losers,' former Fed vice chair says

About this Video

• Video Title: Trade wars have only losers,' former Fed vice chair says
• Channel: Yahoo Finance
• Speakers: Alan Blinder
• Duration: 00:10:28

Introduction

This Yahoo Finance video features an interview with Alan Blinder, former Fed vice chair and Princeton University professor. The discussion centers on the impact of trade wars, particularly the ongoing US-China trade negotiations, and the broader economic implications of the Trump administration's policies. Blinder asserts that trade wars result in losses for all parties involved.

Key Takeaways

• Trade Wars Have Only Losers: Blinder's central argument is that trade wars invariably lead to losses for all participants, though larger economies might experience proportionally smaller losses.
• Global Trading System Criticisms: The Trump administration's justification for trade actions—reforming an unfair global trading system—is addressed. Blinder acknowledges some validity to the premise but critiques the administration's tactics.
• Reshoring Manufacturing: The attempt to reshore American manufacturing is discussed. Blinder expresses skepticism about the feasibility and economic benefits of this approach, citing the loss of certain jobs as irreversible and the negative impact of tariffs on inputs for many manufacturing companies.
• Government Incentives over Tariffs: Blinder advocates for government incentives and subsidies (as seen in the CHIPS Act) as a more effective approach to securing critical manufacturing capabilities than imposing tariffs.
• Attacks on Elite Universities: The video also delves into the Trump administration's attacks on elite universities, which Blinder attributes to a broader attack on elites and not solely to concerns about anti-semitism on campuses. He highlights the detrimental effects these actions have on research and development.