Main image courtesy of Pixabay.com
By Darius Dunn
If President Trump is trying not to look like an eco-terrorist, than proposing economic sanctions on American corporations with overseas manufacture plants, ill-advised tariffs on foreign imports, and halting Muslim immigration are not tactics that help shape that image.
Trump’s Mexican import tax, a proposed twenty percent tariffs on all imported goods as a measure to pay for his “Big beautiful wall,” will slow the economy to a crawl; as, workers, whose wages will surely remain constant, will be forced to pay higher prices for unnecessary consumer goods like mobile devices and automobiles. Of course, the costs are passed onto taxpayers. What this means for consumers is, their money will have less purchasing power; so, they’ll buy less, goods will sit on store shelves un-purchased, and the economy will stagnate.
“I will build a great wall — and nobody builds walls better than me, believe me –and I’ll build them very inexpensively. I will build a great, great wall on our southern border, and I will make Mexico pay for that wall. Mark my words.”—President, Donald J. Trump
Image courtesy of Pixabay.com
American corporations rely so heavily on foreign talent to staff their technology research and development jobs that barring Muslim immigrants from entering the US could dampen productivity. I’m certain it’s common knowledge that most tech talent in American corporations is outsourced from foreign intellectuals, heavily concentrated in Asian nations—including those in the Middle East. Google, in a statement given to USA today said “We’re concerned about the impact of this order and any proposals that could impose restriction on Googlers and their families, or that could create carriers to bringing great talent to the U.S.” In the same article, Netflix founder and chief executive, Reed Hastings mirrored Google’s statement, “Trump’s actions are hurting Netflix employees around the world, and are so un-American it pains us all,” adding, “It is time to link arms together to protect American values of freedom and opportunity.” And where do those highly skilled, technically proficient workers go, facing a drought of American employment? To competing states of course, ones that would gladly pay for the privilege of finally outpacing American technological supremacy in world markets. Furthermore, Trump’s immigration policy will undoubtedly force some American companies to hire from within the US to fill those much-needed technology research seats. The problem is, due to poor education and training in American school systems, companies won’t be able to adequately staff those departments.
Recently, Trump canceled the Trans-Pacific Partnership, which will likely also result in higher prices on Chinese imports. All this economic bedlam in only his first two weeks in office. What may our new president work up to during his four years in office? That is a frightening thought. A better question might be, who is he doing this for?
He claims its all for you, the American people, the disenfranchised workers, the fringe middle class whose voice is muted amongst establishment bickering and corporate lobbyists. But with stagnating wages, higher prices on goods, and no foreseeable job growth (that based on Trump’s thus far unveiled economic policies), how are your interest being aided? If you’re still on your couch, unemployed, dreaming about the products you’d love to buy for your wife, while your kids spend another night, hungry in bed, clutching tummies, growling loud enough to wake the neighbors’ kids, who only got to sleep because of the Nyquil their parents dosed them with to shut up their incessant crowing for food, is America really “great again?”
The economic recession or depression that may result from Trump’s misinformed economic policies wouldn’t benefit the wealthy barons who aided his victory in the presidential elections either.
Image courtesy Pixabay.com
Money must be poured into the economy from the lowest level, consumer spending, for the corporate owners to see profits. Pushing money top-down won’t stimulate anything because that money is consumed in research, development, supply chain, and marketing products that then must be bought by consumers. If consumers’ wages remain constant while inflation and economy-slowing tariffs drive prices up, the very people these products are produced for won’t be able to afford them; consequently, bare necessities like housing and food, rather than the unnecessary consumer goods flooding store shelves in the wake of unregulated price gouging will compete for consumer dollars. Baring that in mind, Donald Trump’s promise to make America great again by stimulating a slowing economy and creating jobs for unemployed workers is incongruous with the policies he’s so far enacted and proposed.
Opponents to this view may note that Trump’s policies are aimed at forcing American corporations to hire Americans and manufacture goods within the US. They may argue that once employment kicks up, consumer spending will follow. This view is optimistic and presupposes that American corporations are willing to support the child emperor, Donald Trump. But what if ransoming American consumer goods backfires?
The President’s brinkmanship, which would force American corporations toward hiring Americans by raising tariffs on US imports, may force American Companies to focus on overseas markets rather than supplying their goods to US consumers. That could cause more corporate headquarters to migrate overseas, bypassing American laws altogether. If less spending, higher unemployment, and an unstable dollar sound like the economic stimulus package you’ve been waiting for to prop up our staggering economy, keep waiting.
These effects are the ingredients in a cocktail of catastrophic economic decline that would further threaten American jobs, while simultaneously weakening our economy. American goods shipped exclusively overseas, combined with high markups on imported goods due to ridiculous tariffs, and the dearth in industrial talent (lost to competing foreign nations), would certainly send our economy into tailspin. That chaos, produced by producing fear and uncertainty, sounds precisely like the handiwork of a terrorist to me.
Image courtesy Pixabay.com
Guynn, Jessica and Laura Mandaro. “Trump Immigration Ban Sends Shockwaves Through
Tech.” USAToday.com. Accessed 29 January 2017. Web.
“Wild Donald Trump Quotes.” CBSNews.com Accessed 29 January 2017. Web. (http://www.cbsnews.com/pictures/wild-donald-trump-quotes/16/)