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Subject: Public distrust for economists stands in the way
The Editorh
Financial Times
Public distrust of economists stands in the way
Re: �Will Democrats now be free-traders?� by William Watson, Nov. 8.
In the latest issue of Foreign Affairs, Karen Dynan, Professor of the Practice of Economics at Harvard, writes: �An uncomfortable truth for American economists is that they have limited influence on economic policy. Take trade, for example. Anyone who has studied introductory economics knows that free trade benefits countries in the long run, by allowing them to specialize in producing the goods and services in which they have a comparative advantage. � Yet free trade has never been popular in Washington. The administration of U.S. President Donald Trump has imposed costly tariffs on imports from Canada, China, Mexico and the EU.�
Why don�t economists have more influence? Answer to the question has been provided by Alan Blinder, a prominent economist, who served in U.S. President Bill Clinton�s Council of Economic Advisers, in his new book, Advice and Dissent.
According to Blinder, the root of the problem is that politicians are dealing with a fundamentally different set of constraints than economists are. The situation is made worse by what he calls �political short-termism.� Politicians who face re-election tend to adopt policies that promise gains in the near future, even if the cost will outweigh the benefits in the long run. Conversely, economists favour short-term cost in order to realize long-term benefits. As trust in experts has declined, it has become easier for politicians to offer far-fetched solutions regardless of their economic merit.
With anti-trade Donald Trump has made �Buy American� protectionism the centrepiece of his policy, free trade has been replaced by (mis)managed trade and as long Trump remains president, free trade will remain toxic for politicians. Voters, not economists, will decide who will be the next president.
MAHMOOD ELAHI
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