Trump is terrible for rural America by Paul Krugman

Last edited Tue May 14, 2019, 01:00 AM - Edit history (1)

Trump is terrible for rural America by Paul Krugman at the Seattle Times

https://www.seattletimes.com/opinion/trump-is-terrible-for-rural-america/

"SNIP.....

What about protectionism? The U.S. farm sector is hugely dependent on access to world markets, much more so than the economy as a whole. American soybean growers export half of what they produce; wheat farmers export 46% of their crop. China, in particular, has become a key market for U.S. farm products. That’s why Trump’s recent rage-tweeting over trade, which raised the prospect of an expanded trade war, sent grain markets to a 42-year low.

It’s important to realize, by the way, that the threat to farmers isn’t just about possible foreign retaliation to Trump’s tariffs. One fundamental principle in international economics is that in the long run, taxes on imports end up being taxes on exports as well, usually because they lead to a higher dollar. If the world descends into trade war, U.S. imports and exports will both shrink — and farmers, among our most important exporters, will be the biggest losers.

Why, then, do rural areas support Trump? A lot of it has to do with cultural factors. In particular, rural voters are far more hostile to immigrants than urban voters — especially in communities where there are few immigrants to be found. Lack of familiarity apparently breeds contempt.

Rural voters also feel disrespected by coastal elites, and Trump has managed to channel their anger. No doubt many rural voters, if they happened to read this column, would react with rage, not at Trump, but at me: “So you think we’re stupid!”

......SNIP"