,
7 tweets,
2 min read
Read on Twitter
~ TRUMP'S TROUBLING TARIFFS ~ Please read my long comment ~ emptywheel.net/2019/05/08/the…
~ Trump did not go through the World Trade Organizations "retaliatory process" and "Trumps Tariffs" will cause the United States to go into a downward spiral and another "recession or depression" will be on the horizon and millions of jobs will be lost all over again.
~ Trump is using "Distributive Bargaining" and his trade war could destroy 4% or higher of global trade. The "Trade Flows" used to be 25% of the U.S. GDP and now with global trade since WW2, It is 60% of the U.S. GDP. ~ If Trump were to go ahead and impose over
$500 billion dollars of tariffs on China's trade goods, these tariffs would be on everything that China sends to the united states. ~ If this were to happen it would rattle the world markets and another "global recession" or even a depression could happen.
~ Trump also wants to leave the "World Trade Organization" and this could also cause major problems in everyone's "global economies". ~ Trump has no idea about "International Trade" and how it is often seen as desirable because it allows countries to specialize,
in order to produce goods that they are relatively efficient at producing, while importing other goods.~ This is the essence of the comparative advantage argument supporting gains from trade and exchange of goods allows countries to "do what they do best, and import the rest".
Once you start to disrupt the Supply Chains all around the world, here is where you will see a drag on everyone's economies. Strong trade between countries helps to keep jobs and in some countries, if trade is lost, then you will see the effects of a shooting war in the making. ~
