In a recent interview at The Economic Club of New York, Bessent claimed that the “Ricardian equivalence doesn’t work if other countries have very different economic and social policies.” As if this was not bad enough, Kudlow doubled down and said, “The free trade theory of Ricardian equivalence is very interesting, but there is no equivalence” with China because the country’s economic and political system is not equivalent to ours. He went on to say, “We are a free market democracy; they are an authoritarian socialist political enemy.”


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