Economics/Class Relations

Broken Windows and the Broken Logic of Trade Wars

May 7, 2025
Welcome to The Lighthouse, the weekly email newsletter of the Independent Institute covering politics, economics, current events, and everything in between.
Dear Readers,

Over the last several days, there have been two especially noteworthy international elections. Friedrich Merz, of Germany’s conservative party, was voted Chancellor after a dramatic first-ballot miss, indicating a weak coalition. And Mark Carney, former Bank of Canada and Bank of England governor, took up the leadership mantle as Canada’s Prime Minister, succeeding Justin Trudeau as the Liberal Party leader.

The results in Canada and Germany appear to be somewhat of a reversal of the trends previously observed in those countries. Our highlighted articles this week cover the international order, foreign policy, and changing political tides.

Scott Andrew Burns and Caleb Fuller begin with their leadoff installment of a new series addressing common economic fallacies in the context of global trade wars.

Allen Gindler explains how America’s political culture has been drifting away from classical enlightenment principles.

Scott Beyer takes a look at other countries’ use of tariffs.

Xiaoyang Zhang writes about what has been lost through the tragedy of American-Chinese relations throughout the decades.

We’re excited to share this issue of Independent Weekly with you—enjoy!

Jonathan Hofer
Managing Editor

Top picks this week

Broken Windows and the Broken Logic of Trade Wars

Mythbusters: Debunking the New Mercantilists, Part 1.

by Scott Andrew Burns and Caleb S. Fuller

Contrary to what protectionists like Lutnick argue, there’s nothing “America First” about trade wars that destroy the international division of labor that has lifted millions of Americans out of poverty.
Read More

Vanishing Shadow of Classical Liberalism

The duopolistic retreat from liberty

by Allen Gindler

America’s political climate is increasingly sold on an unshakable reliance on an omnipotent state to fix society’s woes, instead of individual initiative and market solutions.
Read More

Tariffs Are Already A Global Menace

by Scott Beyer

What can America learn about tariffs from countries like Sri Lanka?
Read More

From Cold War Rivalry to Economic Interdependence

Rethinking American-Chinese relations

by Xiaoyang Zhang

History shows that diplomacy driven by mutual interest can cool even the most intense ideological feuds.
Read More

FEATURED BOOK

Let Colleges Fail

The Power of Creative Destruction in Higher Education

by Richard K. Vedder

Everyone knows American universities are more expensive and less impressive than ever. But no one has come up with a plan to fix them … until now. Let Colleges Fail: The Power of Creative Destruction in Higher Education is the hard-hitting instruction manual America needs in order to save its institutions of higher learning.
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