Wednesday, January 4, 2017

Trade War

Will there be consequences resulting from Trump's meddling in the private business sector's decision making?
Some possibilities:
a. Consumer prices will increase as a result of increased labor costs.
b. Labor income will decline to match international levels.
c. Return to investors will fall if options a or b are not taken.
d. A rapid increase in manufacturing automation to negate the cost of labor.
Foreign manufacturers will cease investing in the U.S. in retaliation to trade restrictions.
U.S. trading partners will erect tariff walls for imported U. S. manufactured and agricultural products.
China will demand payment of our huge debt to them.
A trade war will ensue and we, the consumers, will be the collateral damage.
Paul Hunter

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