Trump has raised tariffs on Canadian and Mexican imports by 25% and chines imp[orts by a further 10%.
Just to let you know our own Warwick McKibben's model has this action boosting the CPI by around 1%!
It is economic madness. It raised input prices to American producers prodigiously. It make merry hell with current supply chains.
we are now in a world that exploits Ricardo's theory of comparative advantage. Companies take advantage of any countries of these advantages to obtain their inputs at their cheapest rate and then sell their p[roduct and make profits.
Mercantilism which Trump supports is the complete opposite. It attempts to produce the whole product in the one country. It imposes higher costs on that country. Australia tried that after WW2 and failed badly.
Off topic but Trump has stopped aid to Ukraine. The big loss will be the patriot missiles which is excellent in DEFENCE! Thus Trump will be responsible for more Ukrainian deaths
No comments:
Post a Comment