IDEAS home Printed from https://ideas.repec.org/a/eee/jpolmo/v40y2018i3p546-558.html
   My bibliography  Save this article

The rise of Trump and an agenda for regulatory reform

Author

Listed:
  • Basu, Kaushik

Abstract

The arrival of Trump in the White House does not augur well for the long-run prospects of the US economy. The protectionism that is gathering steam under his presidency may yield some short-term gains, but at the detriment of the long-run. Examining the discontent among ordinary voters that brought Trump to power, this paper argues that this should be treated as an opportunity for a major regulatory reform. With the advance of digital technology, we have increasing returns to scale, and that, in turn, is making our antitrust laws backfire and hurt the well-being of ordinary people, thereby sowing discontent. The paper builds a simple model to illustrate this and makes the case for revoking the older antitrust laws and replacing them with some simple profit-sharing rules at the level of the firm, and the economy.

Suggested Citation

  • Basu, Kaushik, 2018. "The rise of Trump and an agenda for regulatory reform," Journal of Policy Modeling, Elsevier, vol. 40(3), pages 546-558.
    • Handle: RePEc:eee:jpolmo:v:40:y:2018:i:3:p:546-558
    DOI: 10.1016/j.jpolmod.2018.03.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0161893818300553
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jpolmod.2018.03.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
    2. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    3. Brent Neiman, 2014. "The Global Decline of the Labor Share," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(1), pages 61-103.
    4. Dixit, Avinash, 1980. "The Role of Investment in Entry-Deterrence," Economic Journal, Royal Economic Society, vol. 90(357), pages 95-106, March.
    5. Basu, Kaushik & Van, Pham Hoang, 1998. "The Economics of Child Labor," American Economic Review, American Economic Association, vol. 88(3), pages 412-427, June.
    6. Basu, Kaushik, 2016. "Globalization of labor markets and the growth prospects of nations," Journal of Policy Modeling, Elsevier, vol. 38(4), pages 656-669.
    7. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    8. Atkinson, Anthony B., 2015. "Inequality: what can be done?," LSE Research Online Documents on Economics 101810, London School of Economics and Political Science, LSE Library.
    9. Vives, Xavier, 1990. "Nash equilibrium with strategic complementarities," Journal of Mathematical Economics, Elsevier, vol. 19(3), pages 305-321.
    10. Kaushik Basu, 1999. "International Labor Standards and Child Labor," Challenge, Taylor & Francis Journals, vol. 42(5), pages 80-93, September.
    11. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    12. David H. Autor & Lawrence F. Katz & Alan B. Krueger, 1998. "Computing Inequality: Have Computers Changed the Labor Market?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1169-1213.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gouranga Gopal Das & Sugata Marjit, 2018. "Skill, Innovation and Wage Inequality: Can Immigrants be the Trump Card?," CESifo Working Paper Series 7082, CESifo.
    2. Rajesh Chadha & Sanjib Pohit & Devender Pratap, 2021. "The US–China Trade War: Impact on India and Other Asian Regions," Journal of Asian Economic Integration, , vol. 3(2), pages 144-168, September.
    3. Basu, Kaushik, 2019. "New Technology and Increasing Returns: The End of the Antitrust Century?," IZA Policy Papers 146, Institute of Labor Economics (IZA).
    4. Das, Gouranga Gopal & Marjit, Sugata & Kar, Mausumi, 2020. "The Impact of Immigration on Skills, Innovation and Wages: Education Matters more than where People Come from," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 557-582.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Basu, Kaushik, 2019. "New Technology and Increasing Returns: The End of the Antitrust Century?," IZA Policy Papers 146, Institute of Labor Economics (IZA).
    2. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2010. "Child labor and household wealth: Theory and empirical evidence of an inverted-U," Journal of Development Economics, Elsevier, vol. 91(1), pages 8-14, January.
    3. Matthias Doepke, "undated". "Origins and Consequences of Child Labor Restrictions: A Macroeconomic Perspective," UCLA Economics Online Papers 413, UCLA Department of Economics.
    4. Carol Ann Rogers & Kenneth A. Swinnerton, 2008. "A theory of exploitative child labor," Oxford Economic Papers, Oxford University Press, vol. 60(1), pages 20-41, January.
    5. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2018. "Child labor and the minimum wage: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 480-494.
    6. Gersbach, Hans & Siemers, Lars-H. R., 2010. "Land Reforms And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 14(4), pages 527-547, September.
    7. Jihye Kim & Wendy Olsen & Arkadiusz Wiśniowski, 2020. "A Bayesian Estimation of Child Labour in India," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(6), pages 1975-2001, December.
    8. Sundaram, Aparna & Vanneman, Reeve, 2008. "Gender Differentials in Literacy in India: The Intriguing Relationship with Women's Labor Force Participation," World Development, Elsevier, vol. 36(1), pages 128-143, January.
    9. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, January.
    10. Fabre, Alice & Pallage, Stéphane, 2015. "Child labor, idiosyncratic shocks, and social policy," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 394-411.
    11. Basu, Kaushik, 2003. "Policy Dilemmas for Controlling Child Labor," Working Papers 03-11, Cornell University, Center for Analytic Economics.
    12. Jean-Pierre Lachaud, 2007. "Scolarisation et travail des enfants : Un modèle économétrique à régimes endogènes appliqué à Madagascar - 2001-2005," Documents de travail 134, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    13. Delprato, Marcos & Akyeampong, Kwame, 2019. "The effect of working on students’ learning in Latin America: Evidence from the learning survey TERCE," International Journal of Educational Development, Elsevier, vol. 70(C), pages 1-1.
    14. C. Simon Fan, 2004. "Relative wage, child labor, and human capital," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 687-700, October.
    15. Dammert, Ana C., 2008. "Child labor and schooling response to changes in coca production in rural Peru," Journal of Development Economics, Elsevier, vol. 86(1), pages 164-180, April.
    16. Ramona Schrepler, 2003. "Child Labor and Fertility," HEW 0310001, University Library of Munich, Germany, revised 26 Feb 2004.
    17. Becchetti, Leonardo & Costantino, Marco, 2008. "The Effects of Fair Trade on Affiliated Producers: An Impact Analysis on Kenyan Farmers," World Development, Elsevier, vol. 36(5), pages 823-842, May.
    18. Bell, Clive & Gersbach, Hans, 2009. "Child Labor And The Education Of A Society," Macroeconomic Dynamics, Cambridge University Press, vol. 13(2), pages 220-249, April.
    19. Moussa Keita, 2014. "Pauvreté et arbitrage entre scolarisation et travail des enfants au Mali," Working Papers halshs-01064821, HAL.
    20. Sebastian Braun, 2006. "Core Labour Standards and FDI: Friends or Foes? The Case of Child Labour," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 765-791, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jpolmo:v:40:y:2018:i:3:p:546-558. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505735 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.