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Trump Declares A Trade War On Uninhabited Islands, US Military, And Economic Logic (www.techdirt.com)

submitted 2 weeks ago by [email protected] to c/[email protected]

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A bit late (published Thursday, but I read it last night), but it's astute.

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[–] [email protected] 12 points 2 weeks ago* (last edited 2 weeks ago) (1 children)

Remember that 5th grader from earlier? They already understood what Trump doesn’t: when you buy a toy for $50 at a store, you have a “trade deficit” with that store. You gave them $50, they gave you $0. But you also got a toy. That’s not the store cheating you — that’s just how buying things works.

Obviously this would be more difficult for Trump to grasp given his longstanding habit of not paying for things. People giving him money is a win, him giving other people money is a loss. Clearly the same must be true for trade.

[–] [email protected] 5 points 2 weeks ago

You have to understand trumps frame of reference is in the 60s and 70s. During that time frame, the US was beginning to transition from a manufacturing economy to a more service based economy. There was a huge backlash at that time at the loss of manufacturing jobs to cheaper overseas labor. This was often cited as a trade deficit, and you saw things like "Made in America" take off. Unfortunately, trump, never having worked a day in his life, didn't really understand this beyond "trade deficit bad" and , not being a lifelong learner, has held that belief for 50 some odd years. Furthermore, he doesn't understand that we are a nation of consumers, I'm fairly certain the largest consumers per caps in the world. We have neither the capacity nor desire to meet the demands of our gluttony, including within many sectors of own economy. This also explains his failure and, the failure of his simpleton base, to understand why migrant labor is essential in propping up our agricultural sector. Well, that, and racism.

[–] [email protected] 8 points 2 weeks ago (1 children)

The last world-wide depression helped spur the rise of fascism. I am nearly certain that process is what tRump is trying to duplicate.

Let's party like its 1929!

[–] [email protected] 3 points 2 weeks ago

It also followed a recent pandemic. We're on course to do it all again.

[–] [email protected] 6 points 2 weeks ago

If the stock market crashes, then institutional investors will jump ship and look to put their capital elsewhere. Real estate for example.

With demand for real estate going up, so too will prices. The current owners will be able to sell & make a nice profit.

That profit from the sale of real estate can then be used to buy cheap stocks that will eventually rebound.

A shady real estate developer could get paid twice by ruining the world economy.