TheMarketForIdeas

Protectionism: Solution or Problem? (III)

Silviu Cerna

No. 52, Mar.-Apr. 2025 One might think that any market imperfection is a good reason to adopt protectionist measures. Indeed, a number of economists have fallen into this trap for almost two centuries: from the beginning of the modern history of international trade, in the first decades of the 19th century, to the 1950s, the solution of protectionism was repeatedly tried. Today, most economists argue, on the contrary, that protectionism is an inadequate and ineffective way of correcting internal market deficiencies. For example, if wages do not adjust quickly enough to the decline in demand for the products of a particular branch, a reduction determined by foreign competition, some contemporary economists argue that the appropriate government policy is to intervene – or, possibly, to cease intervention – in the labor market, where remedial measures can indeed be adopted that directly target the causes of the problem. More

The Tariff Man Strikes Again

Tudor Gherasim Smirna

No. 52, Mar.-Apr. 2025 Ideas have consequences. Wrong ideas have disastrous, deadly consequences. Adam Smith got the theory of value wrong. Starting from the mistaken premise that prices are causally explained by costs and identifying labor as the homogeneous element that is present at different stages in the production chain of a good, he developed the labor theory of value. A flawed theory that had very serious consequences in the real world. More

Protectionism: Solution or Problem? (II)

Silviu Cerna

No. 52, Mar.-Apr. 2025 The fact that preventing free trade affects the economy has been known for a long time. The idea is as old as economics itself. Thus, in his book, The Wealth of Nations, which marks the birth of economics, Adam Smith justifies free trade at the international level, showing that, by specializing in the production of certain goods, all nations benefit from freedom of trade. Just as, within a national economy, the division of labor, specialization and free exchange of goods lead to increased productivity and, therefore, general well-being, at the level of the entire world economy, free trade leads to increased wealth of all nations and to world peace. However, Smith admits the establishment of customs duties in two situations: in the case of industries that are of strategic importance for national defense and in reaction to duties imposed by other countries on imports of goods from that country. According to Smith, protectionism is, therefore, an exceptional measure, which, as a general rule, hinders the proper functioning of the economy. More

Trump, the Tariff Man, and the Necessity for a Distinction: Economist vs. Entrepreneur

Andreas Stamate-Ștefan

No. 52, Mar.-Apr. 2025 The dispute between Trump and the rest of the world regarding custom duties calls back into question a fundamental issue: the distinction between economist and entrepreneur. Furthermore, it shows us the fact that being a businessman, an entrepreneur or a capitalist (I shall use these three terms interchangeably), does not imply having a correct understanding of what is happening in/to the economy. Sometimes, simple economic consequences, such as the ones brought about by imposing a customs duty on imports, can pass you by. The way Trump, the Tariff Man, gives credit to certain Mercantilist principles of seeing international trade, enables us to take a deeper look into this distinction between economists and businessmen/entrepreneurs. More

Protectionism: Solution or Problem? (I)

Silviu Cerna

No. 52, Mar.-Apr. 2025 President Donald Trump has imposed tariffs on the US’s three largest trading partners, prompting immediate retaliation from Mexico, Canada and China and sending financial markets into turmoil. Starting on March 4, 2025, tariffs of 25% on Mexican and Canadian imports and 10% on electricity imported from Canada will take effect. Canada’s representatives argue – and they do – that the tariffs are inconsistent with the provisions of the General Agreement on Tariffs and Trade (GATT) (1947) and the World Trade Organization’s Trade Facilitation Agreement (WTO) (1964). The next day, the White House announced that President Trump would exempt car manufacturers from the punitive 25% tariffs on Canada and Mexico for one month if these countries comply with the North American Free Trade Agreement (NAFTA). More

“Liberation Day”, the Nightmare to Stay?! Traders’ traitors

Octavian-Dragomir Jora

No. 52, Mar.-Apr. 2025 It is said, for example, that America has not even responded with tariffs commensurate with the mockery it has been subjected to by friends and enemies alike; that nations that sell it more goods or services than they buy from it are, in fact, raping it with a sick lust; that the country will fare better by repatriating the industries exiled abroad by the ignorance of previous administrations. Except that America is not populated only by “xenophobic economic agents,” but also by consumer-citizens hurt by suddenly inflated prices by thickly penned signatures, as well as by producer-citizens hit by shrapnel from supply chains blown up by tzealous “equalizer” – the US/world’s economies/societies are far more diverse and complex than that… More

President Trump’s Trade War: The US-China Tariffs and Global Implications

Emmanuel Olusegun Stober

No. 52, Mar.-Apr. 2025 This article examines the origins, mechanics, and global ramifications of the US-China trade war initiated under President Donald Trump’s administration, focusing particularly on the reciprocal tariffs imposed by both nations. While the policy was intended to address structural imbalances, such as trade deficits and intellectual property theft, the escalation of tariffs has revealed the deep interdependencies within global supply chains—especially those tied to China. The study analyses the impact of these measures on the United States, the European Union, and developing economies, as well as their implications for global manufacturing, trade norms, and geopolitical alignment. Drawing on classical and modern trade theories, the article argues that although protectionist measures may offer short-term leverage, they often undermine long-term global economic stability and efficiency. More

From Periphery to Power: The Digital Renaissance on the Fringe of Culture

Vlad I. Roșca

No. 52, Mar.-Apr. 2025 Ulf Hannerz wrote back in 1989 that that the twentieth century culture can be characterized as having been built on centre-periphery relationships. This divide has allowed cultural diversity to flow transnationally, empowering cultural creativity through the exchange of ideas and values, especially in peripheral societies. More

Living Standards by Cities in Romania – Cluj Has Overtaken Bucharest

Dan Pălăngean

No. 52, Mar.-Apr. 2025 Cluj is just ahead of Bucharest in terms of local purchasing power and the amount needed for monthly expenses, according to data aggregated by the international website numbeo.com. Thus, with +0.7% in the first indicator and a slightly lower need for money for the same standard of living (despite higher rents), the capital of Transylvania marginally outperformed the capital of Romania. More

The Green Craze Is the new trend environmentally-conscious?

Mara-Andreea Tudor

No. 52, Mar.-Apr. 2025 Over the past few years, Western society has emphasized the importance of taking care of the environment. From providing access to volunteering opportunities, introducing ecological education in schools and adopting legislative projects such as the Green Deal in the European Union, everybody seemed to be consumed by the need to take care of our planet. Micro-trends such as veganism, replacing gas-powered vehicles with electric ones and slapping a sustainable sticker on every product on the market are now daily truths. The question is, however, are these efforts really directed towards the conservation of our precious resources or is this simply a smoke-screen to distract the masses from what’s going on behind closed doors? This article aims to draw attention to what might be the true effect of recent environmental policies, particularly in the EU space. More

The Geopolitics of Indignation and the Paradox of the Taboo Peace

Narciz Bălășoiu

No. 52, Mar.-Apr. 2025 For years, even whispering the word peace in the context of Ukraine was considered an act of geopolitical heresy. To suggest negotiations was to be instantly branded a Putin apologist, a traitor to democracy, a naive dreamer unwilling to confront the world’s harsh realities. The official narrative was simple and rigid: war was not just necessary but morally imperative, a struggle between good and evil that could only be resolved through complete and total victory.And yet, suddenly, everything has changed. The United States, under Donald Trump, has abruptly pivoted towards ending the war, leaving European leaders in a state of ideological havoc. Those who once fetishized war as an existential duty, who derided diplomacy as cowardice, are now scrambling, utterly unprepared to cope with the new geopolitical reality. More

Flat Earth and Rare Earths The oneiric and the onerous in international relations

Octavian-Dragomir Jora

No. 52, Mar.-Apr. 2025 The rules-based international order, through which global organizations were conceived for collective problem-solving, for reducing protectionist impulses and for stabilizing the postwar global economy, is a feeble exception to the world’s true “state of nature”: the anarchy of the balance of power. Fetishized by the idealists who naively believe in the vigor of its architecture, this “order” makes, by comparison, the flatness of the Earth seem like a reasonable hypothesis. More

Stuck in the Middle: The “Sale” of Tiran and Sanafir Islands Geopolitical Shopping Mall [VII]

Adriana-Antonia Tudor

No. 51, Jan.-Feb. 2025 Egypt and Saudi Arabia, two worlds seemingly separated by the waters of the Red Sea, are bound by a connection that transcends physical borders. On one hand, Egypt, an ancient cradle of civilization, serves as the bridge between Africa and the Middle East, where deeply rooted traditions forge an identity that stands resilient against the winds of change. On the other, Saudi Arabia stretches vast and enigmatic, a land where the desert meets modern dreams, and the interplay of oil wealth and religion creates an economic and geopolitical powerhouse that resonates far beyond its borders. More

The Linguistic Divide: How Philological Decisions Shaped Markets and Economies

Vlad I. Roșca

No. 51, Jan.-Feb. 2025 In My Russia (Romanian language edition at Curtea Veche, 2024, in translation of Adriana Dănilă), Mikhail Shishkin argues that one of the defining moments in Russian history was the choice of the “Old Church” language for Kievan Rus instead of Latin. This decision, which had major consequences for the cultural, scientific, and geopolitical development of the Russian sphere, cannot be attributed to a single ruler. Rather, it was a long historical process linked to the influence of Byzantium and the Christianization of Kievan Rus. It is true that the seeds were sown by Vladimir I of Kiev (978–1015), who decided to Christianize Kievan Rus in 988, adopting Byzantine Orthodoxy as the official religion. Through this decision, the path of the Slavic liturgical tradition, introduced by Saints Cyril and Methodius, was chosen, making Old Slavonic the liturgical and administrative language of the emerging Russian state. The decision was consolidated during the reigns of Yaroslav the Wise (1019-1054) and Ivan III (1462-1505), the latter’s rule coinciding with the period when, after the fall of Constantinople in 1453, Russia proclaimed itself the heir to the Byzantine Empire, and Moscow began to be regarded as the “Third Rome”. By choosing a language within the Byzantine sphere of influence, Kievan Rus distanced itself from Latin (the language of the Catholic world) in favour of the Orthodox model. The choice belonged to Vladimir I, who had to decide between Orthodoxy, Catholic Christianity, Judaism, and Islam. More

The Caribbean Crossroads of Empires – St. Croix from Spain to the US Geopolitical Shopping Mall [VI]

Delia-Maria Tătaru  Dragoș-Marius Pană

No. 51, Jan.-Feb. 2025 St. Croix Island is one of the most interesting places in the Lesser Antilles, and is today part of the US Virgin Islands. In addition to its indigenous history of habitation, the strategically located island has been passed around by almost every major empire of the era before arriving in 1917 under US rule, where it is located today and is part of an unincorporated territory and therefore not part of a US state with Senate representation or electoral votes for president. How it ended up in this situation is a fascinating discussion and its unique blend of cultures, including the Danish culture which otherwise became submerged in the US cultural mainstream in Northern US states. More

București-Ilfov, Leading Region in EU at Work Intensity

Dan Pălăngean

No. 51, Jan.-Feb. 2025 The work intensity of a household is the ratio of the total number of months that adult household members have worked during the income reference year and the total number of months the same household members theoretically could have worked in the same period. It is defined in levels, ranging from very low (household working time was equal to or less than 20% of the full potential) to very high (working time was more than 85% of the full potential). Generally, the higher the work intensity within a household (the closer people are to full employment), the lower the probability of being at-risk-of-poverty. More

Nevada’ Bonanza: How this Libertarian Paradise Came to Be Geopolitical Shopping Mall [V]

Livia-Ioana Toader

No. 51, Jan.-Feb. 2025 The earliest historical records date back to the 16th century, with the arrival of the first Europeans of Spanish origin in Mexican territory, aiming to conquer new lands for Spain. By 1535, Mexico had already become an integral part of Spain, along with the Nevada region. These were the first beginnings of the area as a component of the Spanish Empire, which also explains the origin of its name. The term “Nevada” has Spanish roots, derived from the expression Sierra Nevada, meaning “snow-covered mountain range” (Behnke, 2016). Thus, the Spanish colonies laid the foundational stones of the state, as they were the ones who associated the term “Nevada” (snow-covered) with the climatic conditions of the region during winter. Later, in 1821, the region became part of Mexico. However, the changes did not stop there, as Nevada was acquired by the United States in 1848, following the Mexican American War. This conflict began on May 13, 1846, after the United States had already annexed Texas a year earlier, paving the way for disputes with Mexico. The issue revolved around the existing border between the U.S. and Mexico, as the latter considered the Nueces River to be the northern boundary of its territory, while the United States claimed the Rio Grande as the official border, which included the Nueces Strip as part of Texan territory (Zeidan, 2024). Additionally, there were disputes regarding the recognition of Texas as American territory, with the United States affirming this claim, while Mexico was entirely opposed. More

Artificial (Un)Intelligence: Beyond Data and Into Human Complexity

Nicolas-Costinel Negrea

No. 51, Jan.-Feb. 2025 The concept of Artificial Intelligence has captivated modern society, offering promises of advances from self-driving cars to digital personal assistants. However, the term “artificial intelligence” carries an inherent contradiction, and is actually an oxymoron. It combines the idea of intelligence—deeply tied to human experience, intuition, creativity, and emotional richness—with the mechanical nature of machine simulation. This contrast invites a deeper exploration of what true intelligence entails. Intelligence is more than the ability to execute tasks or generate outputs; it involves complex faculties like reasoning, self-awareness, and moral judgment, areas that seem beyond the reach of algorithms and data processing. More

California Dreaming: How the West Was Won by the US Geopolitical Shopping Mall [IV]

Raluca-Maria Marinescu  Iuliana-Elena Niculae

No. 51, Jan.-Feb. 2025 The nineteenth century saw the United States aggressively expand its territories, fueled by the Manifest Destiny and the notion that American expansion was a divine purpose. In 1848, this philosophy culminated in the annexation of California, which transformed the American geopolitical landscape and solidified Anglo-American domination. However, California’s annexation was more than just geographical; it also signified a dramatic transformation in which Mexican-Americans were subjugated via systematic exclusion on legal, cultural, and political levels. This heritage informs current challenges of disenfranchisement and cultural repression in Latino communities across the United States, demonstrating how conquest strategies endure in present racial inequities (Perea, 2003; Montejano, 1987). More

The Astonishing Fact Revealed by the Market Economy

Silviu Cerna

No. 51, Jan.-Feb. 2025 The great economist Friedrich Hayek, a Nobel laureate, devoted his entire life to proving that the spontaneous order of the market is superior to the central planning of the economy. In his book entitled The Fatal Conceit: The Errors of Socialism (1988), he states that this is not an opinion, but an “astonishing fact”. More

The Merlion’s Roar: How the Brits Created Singapore, One of the Greatest City-States in the World Geopolitical Shopping Mall [III]

Adela Nițescu

No. 51, Jan.-Feb. 2025 Singapore is a symbol of global prosperity, a city-state that dominates world trade with the highest standards of living, being one of the fastest industrializing and economically developing nations in South-East Asia. The modern origins of Singapore can be traced to an acquisition initiated in 1819 and concluded in 1824, when the British purchased the island from the Sultanate of Johor for what would now be considered a trivial amount for such a territory. Long before European colonization, the island had previously hosted the Kingdom of Singapura, or the lion city, while its earlier name, Temasek (possibly Sea Town), later became the name of the country’s sovereign wealth fund. This transaction established the groundwork for Singapore’s prosperity, transforming it from an obscure island into a vital economic centre. More

Between Solidarity and Self-Interest within the European Union: Critical Technologies, Power Struggles, and Backdoor Fragmentation

Mihaela Iacob

No. 51, Jan.-Feb. 2025 Industrial Revolutions (IR) have fundamentally revolved around advancements in information and communication technologies (IT&C), facilitating both global integration and connectivity. The power of steam not only moved goods but also transported people and ideas across borders (IR 1.0). This was followed by the rise of electricity, mass production, and the standardization of interchangeable parts (IR 2.0). The subsequent electronic era, marked by the proliferation of microprocessors, set the stage for the widespread diffusion of the internet (IR 3.0). Today, we witness the zenith of these transformations with the emergence of artificial intelligence, biotechnology, cryptocurrencies, and the metaverse (IR 4.0). More

Cajun Enlargement: How the Louisiana Purchase Turned the US into a Superpower Geopolitical Shopping Mall [II]

Daria-Antonia Pătrașcu  Doina Pînzaru

No. 51, Jan.-Feb. 2025 The territory that would later become Louisiana boasts a rich and complex history, shaped by the ambitions of European powers vying for control of North America. Initially explored by the Spanish, it was the French who ultimately established settlements and incorporated the region into their sprawling North American colony, New France. This vast domain stretched from the icy reaches of Eastern Canada to the warm waters of the Gulf of Mexico, encompassing an immense and diverse landscape. Yet, despite their formal claim, the French never fully colonized or controlled this expansive territory. Instead, their primary focus—along with that of the Spanish who followed—was on commercial exploitation, particularly the lucrative fur trade. Key settlements such as Baton Rouge and New Orleans emerged under French and Spanish rule, eventually becoming pivotal hubs for political and economic development. More

Technological and Institutional (Co)Evolutions, Revisited by (Political) Economists Recommended reading: Amfiteatru Economic (Volume 27, Issue 68)

Octavian-Dragomir Jora

No. 51, Jan.-Feb. 2025 Industrial Revolutions (IR) are more than just marches of technological and scientific advancement; they are strides of profound societal transformation that defy and reshape the very structures of political, economic, and social life. The forces of technological progress, economic development, and political maturation have historically collided, for instance, with those of tradition, heritage and conservation, placing the accommodating institutional settings under significant strain. In times of transformation, societies undergo veritable “stress tests” that demand realignments, rebounds and resilience. As technological innovation pushes the boundaries of possibility, social/political/economic institutions are forced to respond, either by embracing change or opposing it, resulting a dynamic interplay between progress and stability. These periods of transformation are not just of interest to historians or theorists in economics and other social sciences; they are crucial for everyone’s understanding of the future existential trajectories – micro, meso, macro, mondo. The study of Industrial Revolutions can be set as a needed inquiry into the future of humanity itself. The current episode, Industrial Revolution 4.0 – driven by artificial intelligence (AI) as its flagship –, has already raised common sense questions regarding what systems of production and governance, of social security and civic engagement will become commonplace. Notably, the relationship between Industrial Revolutions and socio-political-economic institutions is one of co-evolution. Technological breakthroughs often drive the restructuring of social, political, and economic systems (with their norms and habits), while these systems, in turn, influence how technology is adopted, regulated, and integrated into society. The interaction between institutions (immanently, stabilizing forces) and technologies (congenitally, disruptive) is simply… complex. More

The Mirage of the New American Expansionism Geopolitical Shopping Mall [I]

Alexandru Georgescu

No. 51, Jan.-Feb. 2025 Donald Trump has spent the last weeks before the start of his new term as US President throwing populist proposals left and right related to renaming landforms, annexing Canada, America’s ownership of the Panama Canal, and annexing Greenland. I would add to this populist trend the unrealistic proposal for NATO members to allocate 5% of GDP to defense, which serves as a bargaining chip for an acceptable level. This article aims to analyze the proposal for Panama and Greenland and to emphasize that, regardless of how realistic the non-violent and unforced annexation of these territories is, Americans have a complex strategic and historical perspective on these regions. This is not another Trump idiosyncrasy, but another case of Trump saying out loud what a faction of the American elites is thinking. The annexation of Canada does not seem credible to me in terms of the costs it would entail and the impact on American politics, and therefore represents only an attempt to bully former Prime Minister Trudeau in order to promote an ascendant pro-American right compatible with Trump. Only Alberta, among the regions with secessionist movements, would fit culturally with the United States and would have a chance of being a state compatible with Republicans and Trump’s conservative populism in the context of the political calculations that have always accompanied the debates about accepting new states. More

Immediate and Ultimate Foreign Direct Investment

Dan Pălăngean

No. 51, Jan.-Feb. 2025 In 2023, for the 11 EU Member States that reported inward Ultimate Investing Economy (UIE) in Foreign Direct Investment positions, the top UIE was Germany, (12.1% of total value of UIE FDI positions of the 11 reporting countries), followed by the United States (11.9%). Romania is included in the reporting EU Member States, alongside Austria, Czechia, Denmark, Estonia, Spain, Finland, France, Greece, Italy and Portugal, which reported inward UIE FDI positions to Eurostat. More

Sovereigntists, Europeanists, and the Forgotten

Nicolas-Costinel Negrea

No. 51, Jan.-Feb. 2025 In Romanian politics, where party lines blur as frequently as electoral promises, the stage for the upcoming elections presents an all-too-familiar tableau. Sovereigntists and Europeanists jostle for dominance, their rhetoric bold but their substance often lacking. Beneath their self-ascribed labels lies a muddled political landscape—a reflection of a society oscillating between the pull of transformation and the weight of inertia. More

Revolt of the Disdained: America’s 2016 Presidential Election

Steven Alan Samson

No. 51, Jan.-Feb. 2025 The 2016 presidential election hinged on the return of overlooked or marginalized middle-class and working-class Democrats and independents – many of whom had earlier supported Richard Nixon and Ronald Reagan – to reinvigorate traditional patriotism and help form a new “populist-conservative fusion in rural and industrial areas” within the Republican party. Eight years later, following his successful reelection, Donald Trump’s political fortunes still rest to a considerable degree on his ability to secure broad public support while maintaining the loyalty of his original coalition of the disdained.This article is drawn from “Revolt of the Disdained: America’s 2016 Presidential Election,” The Western Australian Jurist, 9 (2018). https://walta.net.au/wajurist/vol9/revolt-of-the-disdained-americas-2016-presidential-election/.An 2020 update of the original conclusion was published as “Revolt of the Disdained: Sovereignty or Submission,” The Market for Ideas, 23 (May-June 2020). https://www.themarketforideas.com/revolt-of-the-disdained-sovereignty-or-submission-a589/. More

The Anatomy of a Media Lynching Organizational structures over the cyber mob

Mladen Čudanov

No. 51, Jan.-Feb. 2025 This article analyses organizational aspects of media/cyber lynching, especially when performed in the yellow (sensationalist) press and passionate parts of the Internet community. Media and cyber lynching can be defined as extremely aggressive, unjustified, untrue verbal attacks, insults and discrediting in the media. One good book says: “You shall not follow a crowd to do evil. You shall not testify in court to side with a multitude to pervert justice”. However, we often do, maybe because we scroll brainrot media more than we read books. I try to add a drop in the ocean of medicines that our sick societies desperately need, so we might cure them without the accompanying evils of revolution. More

The Most Serene DOGE The canals of government inefficiency are plied not by gondolas, but by war galleys

Octavian-Dragomir Jora

No. 51, Jan.-Feb. 2025 The President-Elect of the United States, Donald J. Trump, has begotten an inquisitorially-minded anti-waste institution dubbed the Department of Government Efficiency (DOGE). The bicephalous institution (an initial red flag when it comes to institutions everywhere) is jointly run by noted tech giant Elon Musk (worth 330 billion dollars or thereabouts) and the pharma entrepreneur Vivek Ramaswamy (a mere 330 times “poorer”). The department will not be an actual government body, which presumably would require Congressional complicity in downsizing the leviathan it helped create. DOGE will be a sort of outside consultant specializing in “dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures and restructure federal agencies” (Trump dixit). Presented as a veritable “Manhattan project for our times”, the nascent body is born under a feeble star sign (since the President relies on bipartisan support from Congress, not just a pen, no matter what Obama claimed back in the day), while also being coupled with unrealistic and exaggerated claims of two trillion dollars in yearly savings, which is a third of all federal expenditures outside those of interest on debt. More