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RE: How the misconception of one man drives the world economy into the sand

in #tribes17 days ago

Thanks a lot for your comment!

As you mention correctly, tariffs are a useful tool to protect certain strategic sectors in an economy. The dismantling of the tariffs was done over several decades to lead to the economical situation that we have now with worldwide supply chains.

To put limits to globalization is in my opinion not bad since it's true that it had a lot of undesirable effects on the western world. The problems I see are the following:

  • The introduction of Tariffs should be targeted at precise sectors that are of national interests and that don't add negative effects on the whole economy.
  • Appling tariffs on the most interwoven economies is pure poison for the companies involved. It will hit the economy first, the housing market second and finally the currency as well.
  • Appling Tariffs with the belief that it will make the country rich is equally an illusion. It might be true in the long term but how long would it take to make the transition? Will the country and the government outlast the transition or will there be an opposition in place that pushes the moves back? A billion dollar plant can't be built in a week. Companies need time to adapt and the incertitude will simply prevent companies from investing. Not all the companies have pockets deep enough to outlast such a change.