Less Worse Off

Patrick O'Malley: You know, I only made one real mistake.
Evie Tozer: What's that?
Patrick O'Malley: I should have sold you when I had the chance.
--High Road to China

Protectionists suggest that the escalating trade war with China does not affect each side evenly. Some, including the president, argue that the US actually gains. Domestic jobs will beneift, plus the US will take in billion$ in tariff revenues.

Others point to recent market performance as 'proof' of the asymmetry. Because US stocks have only declined by a fraction of Chinese stock losses, that means the US comes out relatively ahead in a trade war.

This is sheer economic ignorance. People trade freely because they perceive benefit. Both sides gain. When trade is restricted, they both lose. Both sides are worse off.

The argument is over who is less worse off.