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A debate over US trade deficits has been raging online, especially in the wake of the ongoing discourse about tariffs. Much of the conversation has focused on whether tariffs are a suitable tool for managing trade imbalances, with notable contributions from commentators like Oren Cass. In a recent article for The Atlantic, Cass defended tariffs on the grounds that unquantified benefits from domestic production justify some form of protectionism—a position that, he argues, addresses market failures often overlooked by mainstream economists. While I disagree with Cass’s conclusion, there is more to his argument than meets the eye, and many of…
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