A tariff war hurts the United States more than anyone else

It's quite interesting that a lot of people believe that everyone loses in a trade war. That seems to be the general consensus right now and I can't wrap my head around how everyone simply thinks that everyone loses at the end of the day whichout considering the length or extent of losses.

I mean, if you're asking on the national level, then you have to look at who already is overleveraged and has more to lose if capable competitors don't opt for negotiations. In the current world, there's nobody more overleveraged/disadvantaged than the United States and it's weird they believe that individuals that are completely crushed by this market crash were bad at their investment strategies.

Hello? The United States government incurred bad debt and is now purposely tanking the stock markets which is primarily backed by United States capital through the numerous investment firms and billionaires that reside in the country.

This is a known attack by the ruling administration, we shouldn't be talking about individuals overleveraging here because this isn't free market events.

Weight plays a crucial role in how you define a loss. If I lose -9% on a trade and a competitor loses -33%, I essentially have a 24% advantage irrespective of how much capital we are playing with.

But somehow, people believe that everyone loses. No, you can't just look at the entire industry and conclude that everyone feels the pain equally when there are clear cases of specific groups taking on more losses.

Generally speaking, everyone may have experienced some degree of losses, but when you move to loss comparison, you find a situation where some people are in shit and others are in positions where it's quite comfortable.

If we pay close attention to what's happening we'd realize that only the popular names are getting mentioned on the news. The US, Europe, China, Vietnam, Canada, and not much else.

Why really is that?

Without looking at any data, I'll guess that most other countries have very little exposure to things that are greatly affected by these tariffs, so if the war is largely amongst the names mentioned above, which recent events have shown that most of them now have some degree of hatred for the United States, what do we think will be the outcome of this all?

A general heavy cost for every country globally or the United States taking a huge hit tanking its stock markets, manufacturing industries and reputation?

Will it be worth it? Afterall, the MAGAs call it short-term pain for long-term benefits.

Wages don't increase across the board

One thing I've seen come up a lot since Trump began his game of tariffs is how many people seem to believe that tariffs will magical force jobs to come to the United States and that wages will simply increase across the board.

I have never seen a more false assessment of how the business world works. If any of these people cared to look at historical numbers there'd see that rising costs does not lead to equivalent percentage increase in wages as companies restructure their goods and services prices.

In fact, most people lose their jobs and the few that remain don't get compensated enough.

You think because a company increases their prices by 34% that your wages would grow by 34%? And even if it did, do you think this would simply be the case across every sector and industry of an economy?

Well think again.

The reality is that even if companies were to move to the United States, and lots of jobs gets created, wages would not grow enough to compensate for the cost of whatever gets produced and this creates a general imbalance that keeps cost of living higher despite the domestication of production.

Besides, businesses differ on how their reward labour, some AI or Nuclear company moving to the US will not largely impact what the farm lands can afford to pay to keep their produce reasonably priced.

Certainly, none of what is said here is intended to discredit whatever plan it is that Trump has, at least, not today. The focus rather is on what the general public tends to be thinking and voicing, in consensus of the situation.

The United States is in deep waters evidently, most just don't know it yet and Trump doesn't care because he's not very exposed to what's getting hit. Unless others bend a knee or Trump reverses it all or this brings about great financial damages to the United States.

Posted Using INLEO