Morgan Housel, a NYT bestselling author, argues that tariffs are economically harmful, raising consumer prices and reducing competitiveness, despite their political appeal. He explains that while manufacturing jobs have declined, the primary cause is automation—not offshoring—and that even if production returns to the U.S., employment levels won’t match the past due to technological advancements. Housel contextualizes America’s mid-20th-century manufacturing dominance as a unique post-WWII phenomenon, eroded by global competition and automation. He acknowledges the frustration of displaced workers but warns against protectionism, advocating instead for free trade and specialization. Regarding the recent market decline tied to tariff news, he advises long-term investing discipline, emphasizing that crises eventually resolve through counterforces, and maintains rational optimism about the future despite short-term turmoil.

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