In a trade war everyone loses. Living standards go down. Economy tanks. Jobs tank.
In a trade war everyone loses. Living standards go down. Economy tanks. Jobs tank.
Sort of like we have been living for the past 8 years
/s
Not necessarily
Part of the problem with Chinas growth is they have been sucking jobs away form the US, while keeping their own wages down, so a tiny minority of folks on both sides of the pond garner the gains. As the US middle class declines that is more and more of a losing proposition for everybody and the situation can continue only because of the US current status as a the reserve currency for the world.
Presumably China is threatening that status if we invoke a trade war to bring back jobs to the US.
Now if a trade war makes china go the route of Henry Ford, that is develop their home market and while the US has to employ US folks to make US products it means less profits for the very rich, while more money spread out over a wider population. Ultimately good for both nations. Of course it may well threaten our status as “the” reserve currency.
Ponder this: It was very possible pre 1974 for a young man and women to get married at age 20 to 22, the husband to work a conventional job and the family to get by comfortably. No college degree required, houses cost around 3 times the yearly salary of the hubby alone. To stop the decline in the domestic populations birth rate (~1.73 right now, need 2.07) you need to go back to the time when such a life was possible. People do not need cheap plastic crap to have a fulfilling life, they need a spouse and breeding territory sufficiently secure that they have kids. Nature takes care of fulfillment from there.
Economic efficiency in international trade may make winner take all markets, which allow famously rich folks like Gates, Jobs and Zukerburg. Being the reserve currency of the world may allow self important politicians a lot of glory as the predominate military power. Neither does nothing for the common Joe and Jane.