We can never return to the world of the 1940s and 1950s where the economies of small towns were built around small factories. One reason is that we exist in a different world. The internet, small affordable computers, the interstate and plane travel have changed us as much as globalization.

We need to recognize that America has always been a country of change. In fact, this has always been our strong point. In the 1910s most Americans lived on family farms but by the 1960s, most Americans worked at large corporations. When family farms could no longer support families, people gravitated toward small factories but as they closed down due to a changing world, Americans moved toward larger corporations or took advantage of education being more available to move into professions or management positions or moved into the service industry in larger cities. Our lives changed and for most it was for the better. People worked less hours than on a family farm and had more access to entertainment, travel and education. They could retire at a certain age. Medical care was more widely available leading to longer lives. Families moved from one car to two or three per household and from radio to one black and white TV to color and now multiple screens throughout the house. Most Americans get at least some wealth from the stock market.

The problem with looking just at goods which are traded is that it is no longer an accurate indicator of our economy relative to the world. For one, American trades services as much as goods. For example, our banking system is used worldwide, and we trade consulting services. You also have to take into account the money that flows into our companies as foreign investors buy our stocks and bonds. So, in order to understand where we stand in regard to a ‘trade’ deficit, we need to look at the complete picture.

Where tariffs might help is in regard to a few key industries and mining operations which for security reasons, needed to be kept within our borders. And, yes, in some cases, they would help in reducing our trade deficit but where and how much are applied, skill needs to be employed.