It seems that the US is facing a lot of us and downs recently in terms of the strength of the economy. Experts are saying that the roller coaster we've been on recently is concerning. With ongoing trade 'negotiations' with China, constant political headlines, and problems arising in the Middle East, business confidence and comfort seems to be very much up in the air. Overall weakness around the globe may threaten to weaken the US as well. So if the US led global trade network continues to stall, then a domino-effect could trickle downward, causing a global economic downturn.
What can the US do to prevent such an instance? Work to quickly come to an agreement with China?
https://www.reuters.com/article/us-usa-fed-barkin/roller-coaster-of-politics-and-trade-threaten-economy-feds-barkin-idUSKBN1WB2VI
I think the bottom line is that we have to resolve trade disputes with China, they are our main source of trade and in the short term there are probably no other viable options of consistent mass trade other than China.
ReplyDeleteIt is a popular opinion that trade is beneficial to all due to the idea of comparative advantage, which is true. Those who are more efficient at producing one good should trade with with another party who produce goods that they are not efficient at producing. Eliminating tariffs would significantly lower overall price levels for imports for producers which would ultimately be passed on to the consumer and increase the overall standard of living.
ReplyDelete