If you listen to leftist politicians and the mainstream media, we are constantly on the verge of a major recession and President Donald Trump is losing the trade war with China.
However, the facts tell a very different story.
The economy is growing far more than it ever did under Barack Obama, and economists are arguing that Trump’s tariff strategy with China is working in the United States’ favor.
“Today, it’s hard to turn on the financial news, open a business paper or browse an investment website without seeing some doomsayers predicting the impending collapse of the U.S. economy and equity markets because of the latest tariff or presidential tweet. When the markets invariably resume their upward trends the next day, it’s crickets,” Greg Autry, an assistant professor of clinical entrepreneurship in the Marshall School of Business at USC, wrote in an issue of the Los Angeles Times detailing exactly how Trump is winning when it comes to China.
Autry argues that despite many predicting that tariffs would lead to more of a cost burden on American consumers, they are actually hurting China where it counts.
“While economists differ on the effects of the tariffs, there is considerable evidence that they are having the desired effect. Modeling by European economists Benedikt Zoller-Rydzek and Gabriel Felbermayr concluded that, although U.S. consumer prices for affected Chinese products will rise by about 4.5%, Chinese firms will pay approximately 75% of the tariff burden. And as of the end of August, the treasury had collected more than $25 billion in tariffs from China,” he wrote.
Autry notes in his piece that one of the main platforms that helped elect Trump was his dismissal of globalism, an economic theory that had led to an American economy that was struggling while countries like China benefitted.
“The administration is the first to fully recognize that globalization hasn’t delivered for Americans and that China is an existential threat. Moving from awareness to action is now a global challenge,” he wrote. “American firms are on notice that the U.S. government once again sees American workers and national security as top priorities in its dealings with China. And the administration has drawn a clear line in the sand for China, requiring it to embrace global norms and structural reforms that would lead to mutually beneficial trade.”
Autry co-authored “Death by China” with Pete Navarro, who currently serves as the Assistant to the President, and Director of Trade and Manufacturing Policy. Navarro has been seen as key to the new economic policies introduced by the administration.
Again, none of the economic successes of the administration matter all that much to the media, which still fear mongers when it comes to the economy. The Wall Street Journal recently published a piece arguing that a “Navarro recession” could be around the corner.
Whatever you think about the specific steps the administration has taken, there is little argument to be made for globalism. It is a tactic that saw the American economy turn to dust under George W. Bush and Barack Obama. The sole fact that this is the first administration able to recognize the negative effects of globalism on Americans should be reason enough to hope.
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