PROTECTIONISM IS THE NEW GLOBAL ECONOMIC RISK

the EU going after Ireland, not Apple directly, to go after Apple is the latest indication that protectionism is afoot in the land and nothing good will come from it. Is the Apple/Ireland tax deal bad public policy? probably. But is was entered into 25 years ago when there was no EU limitation on such an arrangement. So this is an ex-post facto reach back attacking an agreement made by a sovereign. Not good

But as we look around the world at the backlash against trade agreements, globalization, immigration, trump and Hillary, competitive devaluation through ridiculous QE monetary policy and it feels like things may go badly.

by the way, all these reactions are rational or at least understandable. we as a society of nation states are doing a bad job managing change. maybe a trade agreement does increase GDP and GDP per capita but how is the increase allocated? If you are the one laid off, the trade agreement doesn't feel so good.

given how poor a job we do in the US managing change and the mess that calls itself the EU and an aggressive and transitioning China, i think things could go badly

remember Smoot-Hawley