Investor's Business Daily schools Feingold on economics

On Monday, the IBD editorial board decided to question Russ Feingold's grasp of economics:

The key difference, of course, is that Flat-Earthers are harmless cranks who continue with their delusions with no discernible effect on public policy. Sadly, the same can't be said for some Democrats.

We refer to a proposal by Sens. Byron Dorgan of North Dakota and Russ Feingold of Wisconsin to "balance" the trade deficit not by market forces, but by government fiat.

Their plan would require any company wanting to import goods into America to first get a government certificate. The certificate would, in essence, have an "exchange rate" that would change each year to make it more and more expensive for importers to bring goods in. Over time, by reducing import demand, it would "balance" our trade, according to the two senators.

This idea, if presented as an Economics 101 paper in any reputable U.S. university, would be given an "F" and the dullards who wrote it placed on academic probation.
[...]
Free trade is one of the few things economists of all stripes agree on. We do ourselves and the world a favor by running our current account deficit. Yes, we buy lots of stuff overseas, but we're also investing huge amounts in our own economy — which will make us all richer in the future.

With the Dorgan-Feingold plan, we're getting a whiff of what the Democrats might do if they take back Congress in November. When it comes to the economy, they style themselves as Phi Beta Kappas. On trade, they deserve dunce caps.

Read the entire article, because the IBD gives a good economics lesson on free trade.