https://edition.cnn.com/2020/05/01/business/trump-china-coronavirus-trade-war/index.html
The coronavirus pandemic is crushing the US and global economies. Unemployment is soaring. GDP is collapsing at an unprecedented pace. Corporate profits are plunging. Manufacturing is contracting.
Yet Trump could amplify that
financial pain by attempting to use tariffs or other sanctions to punish
China for its role in the health crisis. Economists warn that such a
strategy could badly backfire, potentially turning what is now a deep
recession into a full-blown depression.
"This is pure folly. It's exactly what the US economy doesn't need," Joe Brusuelas, chief economist at RSM, told CNN Business.
Wall Street is not happy about the
return of Tariff Man, as Trump calls himself. The Dow tumbled 600
points, or 2.4%, Friday afternoon on concerns about renewed US-China
tensions.
Back in the late 1930's there was never a good time to stand up to the Axis. The Allies didn't want to remilitarize. They didn't have the money. It would hurt the economy. But if they'd have taken the hit in 1937 or 1938, millions of lives might have been saved.
ReplyDeleteThe same thing is happening now. This is when China is most vulnerable because of the economic damage its taken from this crisis. Yes, it'll hurt the Western economies but quite possibly the damage the West will take in a few years if they don't do it now will be worse.