“It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy . . . . If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage.”
-Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776
IPI believes the United States should aggressively pursue trade liberalization, which includes a willingness to lower our own trade barriers even when other countries do not respond reciprocally. Ideally, those efforts include multilateral agreements, such as the Trans-Pacific Partnership, but bilateral agreements can also promote freer trade.
American consumers bear the brunt of the protectionist impulse through higher prices on consumer goods, and American workers are best served when liberalized trade policies facilitate the export of American products throughout the world. At a time when protectionist sentiments are growing, it is important to assert that the U.S. and its workers have nothing to fear from trade, and everything to gain.
In a coalition letter the signers urge President Trump to apply the same successful, deregulatory, market-based approach that he has championed in other policy areas to health care.
Democrats have long criticized President Trumps' economic policies, yet Joe Biden is now plagiarizing some of them—and making them worse.
The U.S. post-war consensus on free trade is evaporating, and it's not clear what's replacing it.
Important legislation has been proposed that would encourage medical and pharmaceutical manufacturing to relocate to the U.S. by providing potent tax incentives instead of threats of government force.
Coalition Letter Regarding the Imposition of New Buy America Requirements for Medical Goods and Pharmaceutical Products
In this letter to the administration, economists from numerous organizations encourage the U.S. and its trading partners to pursue policies that make medical supplies more plentiful and affordable.
If implemented, a Buy American mandate would disrupt existing supply chains, invite retaliatory actions from trading partners, and threaten timely access to medicines. In this current health crisis, such a mandate could even threaten our ability to adequately respond to the pandemic.
The pandemic has demonstrated the need for more diversity in the pharmaceutical supply chain, not less.
A step-in-the-right-direction budget—if the reality matches the rhetoric, which it often doesn't.
One of the president's top trade advisors sees nothing but positives from imposing tariffs. A more balanced view sees some positives, but many negatives.
President Trump and administration officials are downplaying fears of a recession. While a recession isn't imminent, the threat is very real.