I3BrigPvSk
The Viking
We might face a trade war between the US and the rest of the world. What do you think about? Is it good or is it bad?
Trade War
BritinBritain
Per Ardua Ad Astra
Wasn't this the cause of the 1929 Wall Street crash and the depression?
Capt Frogman
Brit Pack (Troop Commander)
America needs the rest of the world more than they need America.
Watch their economy collapse.
I3BrigPvSk
The Viking
Not really. countries were lesser dependent on each other prior the crash. They were trading with each other, but not like how they do it today when almost all countries are a part of the global economy.
The recession in 2008-2009 reminds a little of the depression in 1929 when the banks began to crumbling down. They were saved by the govt around the world. The govt didn't do that in 1929. Roosevelt administration responded to the depression with "The New Deal". Projects to build up the infrastructure, the US got the Hoover Dam as a result of the depression.
No. the primary cause was an inexperienced Federal Reserve Board that strangled the economy fighting the post WWI Inflation. the trade Wars caused by Smoot-Hawley made it worse, and the Stock Market crash was a result of "Margin" buying that pushed the Market higher than it should have gone and then magnified the down turn in to a rout.
"Life support" at best, only saved by the economic impact of WWII.
MontyB
All-Blacks Supporter
Depends on who's side you look at it from.
From the American side it should be worrying as they are going to be forced into relying on their domestic market to make their industry viable, for the rest of us there are few negatives as we can carry on working on free trade deals with each other and the excess production from a closed US market should lower the price for the rest of us.
Briefly, then industry will adjust production & the lower production increases cost per unit. Back in the 70s the US limited the number of Japanese cars that could be imported. As a result they sent more expensive units & the domestic car companies could have sold more cars at the same price they had been selling at but chose to raise prices. The higher prices of cars caused an increase in profit causing the UAW to demand higher wages. In the end we just payed more for cars do to reduced competition.
MontyB
All-Blacks Supporter
In the long term that is partially correct prices will return to where they were once stockpiles are used up and production is adjusted to meet new sales numbers but in the short term it will be all smiles.
Further to that the US exports very little to the area (most of our imports in technology and machinery are Japanese, Chinese and Australian) and what it does export is usually in competition with us so for smaller economies who maintain maximum production seeing US products costing 25% more makes our industries very happy.
I suspect the two big losers from the US view point will be Automotive (Comercialand private vehicles) and Agricultural.
Capt Frogman
Brit Pack (Troop Commander)
If it goes back to the status quo, but if it goes to zero.....Or more like the EU got Trump to back down.
I meant zero Tariffs with the EU.
BritinBritain
Per Ardua Ad Astra
We should charge the Yank treble for using the English language.
Capt Frogman
Brit Pack (Troop Commander)
We should charge the Yank treble for using the English language.
Don't you mean for ruining the English language? :lol:
I3BrigPvSk
The Viking
The Americans speak something we all can understand. The Brits speak something else and nobody outside the British Isles understands it