- Economists say Trump Trade Policy may Cause Recession

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Well, it seems like the whole country is wondering what to expect from our new President Elect Donald Trump. With things like a complete ban on Muslims entering the country to a wall along the southern border many have placed his foreign trade policy(or lack thereof) plans on the back burner of importance, however, it could be more far-reaching than most of his other ideas.

The whole Make America Great Campaign Donald Trump ran to bring back American jobs have some economists saying his plans for curtailing or outright abandoning decades’ worth of global trade networks won’t bring back 1950s-era manufacturing jobs and could instead produce recession-triggering levels of inflation and higher prices for American shoppers.

Is it reasonable that Nike shoes, who have been manufacturing their products in other countries from the dawn of existence suddenly say, “well its so expensive to do trade with America now so we will just bring the product home now and give Americans the jobs.” Not likely, and this stands for all of the like companies. Two things will happen. They will lower the wage paid to their already low salaried workers and charge more for their product.

Donald Trump attained wealth, he should know that business 101 is to do whatever it takes to maintain profits. The problem people, and not just Trump people but a lot of people have is the ignorance to just how business works. It’s true businesses do sometimes have goals to help people. Though all for profit business has one main goal, see profits.

Most businesses that sell a product work on this principal, how much is the consumer willing or more able to pay for our product? They could care less if its expensive, causes distress, as long as you buy, they sell at the price they can get. It will always be like this. If not, it’s not a free market economy.

“What most people don’t realize is that those jobs were doomed anyway, and no amount of protectionist trade barriers are going to bring them back,” said James J. Angel, an associate professor at Georgetown University’s McDonough School of Business