Reference News, July 14 report: The U.S. "New York Times" website published an article titled "Trump Says He's Making America More Competitive, Right?" on July 9. The author is Jess Bidgood. Excerpts are as follows:

U.S. President Donald Trump won the election twice by promising to revitalize the U.S. economy and restore America's global leadership. This week, he once again used his favorite tool, like a blackjack dealer who believes in the house always winning, continuously throwing out tariff threats.

Trump wrote on a social media website on July 8: "Tariffs are making our country 'soar'." He also claimed that the United States is the "hottest" country in the world. However, economists and industry experts warn that Trump's comprehensive reforms for the economy and the nation may have the opposite effect, possibly reducing America's competitiveness on the global stage.

Tariffs are one pillar of Trump's industrial policy. I will focus on this aspect, as well as two others, to explain why some experts are concerned that six months of "Trump economics" could stifle a key driver of American competitiveness: innovation.

For a president aiming to strengthen or restore domestic industries - a goal that can promote both national security objectives and economic goals - trade restrictions such as tariffs are a long-term strategy.

Robert Atkinson, chairman of the U.S. Information Technology and Innovation Foundation, told me that tariffs can increase national competitiveness - but they also come with risks. Tariffs may isolate the American market, while other countries engage in free trade. They may also increase the prices of goods that American companies need to import to produce products, forcing them to bear higher costs, which their foreign competitors may not face.

Atkinson said this could harm core industries such as automobiles, aerospace, and scientific instruments. "Tariffs would hurt those companies, while helping midwestern manufacturers that only sell in the United States," he added. "It's good for them, but it won't make America great again."

Former U.S. President Joe Biden tried to revitalize industrial policy through legislation such as the "Chip and Science Act" and the "Inflation Reduction Act." Trump's domestic policy bill significantly cut many of these energy tax credits. Solar panel and electric vehicle manufacturers warned that this measure would destroy their industries, giving China an almost insurmountable advantage in these two sectors.

Michael Lenox, professor at the Darden School of Business at the University of Virginia, said that in the context of global transformation, this could put American companies behind.

Lenox, who studies innovation and technological transformation, said, "If we are not careful, when these new technologies emerge, we might still be investing in outdated technology." He also said, "In the Netflix era, are we still doubling down on Blockbuster (a U.S. home video entertainment provider - editor's note)?"

Lenox said that the U.S. lacks competitiveness in factors such as labor costs. He said the U.S.'s key competitiveness has always been its ability to encourage experimentation and innovation. But under Trump, this is changing.

Sabrina Howell, a professor of finance at New York University who studies the role of the federal government in promoting innovation, said that three interwoven factors have driven economic growth over the past half-century: government-funded research, immigration of high-skilled individuals, and the U.S. robust venture capital system.

Howell said about Trump: "He is currently weakening this system from many aspects."

My colleague reported in May that the Trump administration cut science research funding to its lowest level in decades. Studies show that these cuts could lead to long-term economic losses. These cuts - along with government attacks on international students from schools such as Harvard - could reduce the country's appeal to top global talent.

Lenox said, "If we don't invest in basic R&D, if we don't invest in attracting top global talent, I don't know if the impact will be immediate, but on the road ahead, it could be catastrophic for the United States."

Experts believe that the U.S. private capital investment system still has advantages. However, Atkinson said that federal funds create a "seed" for private investment, and cutting public funds will cause the entire system to fail. (Translated by Lu Di)

Original: https://www.toutiao.com/article/7526849588158890536/

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