Well, it isn’t as though there hasn’t been any push-back against the tariffs Mr. Trump has imposed on Canada, China and now Mexico. But, I notice an air of chagrin among the pundits that is more analytic than scrutinizing. And a shallow analytic at that. Even the field of a billion democratic candidates hardly seems concerned with what may be the biggest economic policy shift in forty years. They are, after all, enamored with more important emotional issues like the Saving the Babies movement.
It seems to me that the lack of reaction by the stock markets couldn’t be more understated. Certainly, there have been some fits and starts and even some highly significant daily losses. By and large, however, the stock markets are steaming ahead apparently with little concern. Let us not forget, the last stock market crash was a humdinger that continued a repeating algorithmic pattern which would seem to suggest the next one would be the “big one” that could injure or cripple the US economy permanently.
As Mexico grows it’s economy and China’s expansion continues attempting to fit it’s own shoe size, US markets will diminish in dominance and become more susceptible to the influences of the other large economies of the world. The reality that the US manufactures virtually nothing is plain and simply a national security issue unto itself. Our lack of self-sufficiency leaves us vulnerable to the whims of other governments who may not be concerned with whether or not we could fill the void if they decided to stop sending their goods our way. The tariffs build some wiggle room into the equation.
Mr. Trump’s economic policy may end up hurting a little bit, but if it sidesteps a crash worse than the great depression, secures our national autonomy without military action, creates some leverage to buffer our economy against China’s growing pains, lifts skilled labor force wages with new goods “Made in the USA,” and keeps more discretionary income at home in the USA to buy those goods – maybe it’ll all work out for the better. And really, how bad will it hurt to take a drink of Jack Daniel’s instead of tequila every once and awhile?
But, whew…, I guess the fake news people already knew that.
© 2019 – Jim Casey