Showing posts from November, 2019

Trump May Be Wrong About Winning a Trade War

This article was first published by me on Talkmarkets: Donald Trump may be very wrong about the USA winning a trade war. Yes, the US imports the most, so it would theoretically win a trade war if it imported less. However, the impact of all this would fall upon the consumer. Producers could win in America, while consumers will surely lose. America's Consumer Is Weak The consumer in America may no longer be wealthy enough to withstand a major trade war. China and other nations have consumers who consume better quality products. They are simply not as austere as Americans are in their buying habits, as their savings rate is low, their debt is high, and their wages are weak. Americans, as the decline in prosperity on mainstreet has hit hard since the Great Recession, buy based on price. Therefore, they will balk at higher prices. Companies may not be able to make