Is President Trump challenging the long standing theory of economic development? Quite possibly!

Maybe this theory is flawed and naive when it comes to the ultimate test of history and reality!

Whether President Trump deliberately and intentionally challenges this theory is an open question, I suppose. However, his imposition of trade tariffs on many countries is certainly a test of this theory. Actions speak louder than words.

Very roughly and coarse, according to this theory of economic development:

1. Less national autarky and more free markets, international division of labor combined with free trade would benefit the economic prosperity of many individuals and society as a whole. Living standards, labor productivity would be improved and so on.
2. Economic development proceeds in phases, evolving from farming/husbandry/barter trading to mercantilism/capitalism to largely high tech & service economies.
3. Developing countries eventually would become developed countries.
4. International organisations and agreements would facilitate and support this economic development.
5. More progress of peace and stability would be achieved along the way by increasing international economic dependencies and the rule of law.

What are the limits of this theory of economic development?

Here are some examples:

1. There are still too many rogue or even belligerent countries in this world (e.g. North Korea, China, Russia, Iran and others), most of them are dictatorships and not democratic republics. These counties have a tendency to exploit the often naive Western and open society countries. Plus, they have been constantly trying to undermine open societies with disinformation and subversion.
2. Some countries (e.g. China) have clearly taken advantage or even exploited the tenets of free markets/free trade/rule of law and open societies, acting more like free loaders or free riders or scofflaws. Free trade for me, but not for thee.
3. Open societies and democratic republics are constantly and significantly influenced by many naive, useful idiots and fellow travelers, who promote dictatorship, central planning and the like.
4. It turns countries still need manufacturing capabilities and capacities for national security and to reduce undesirable international dependencies. Services can not replace physical products.

P.S. Adherents of this theory of economic development are e.g. so called globalists, the World Economic Forum of Klaus Schwab etc.

Economic development - Wikipedia