Thursday, August 9, 2018

Economics will win

The trade war is progressing and one thing is clear, no one will win.

In fact the public is pretty much guaranteed to lose with higher prices on more and more things.

The idea that some increase in jobs will make that worthwhile is problematic considering that we have very little surplus labor to fill those jobs.

Reversing the economic forces that takes production to the most efficient supplier is a major component of capitalism and competition and the attempt to interfere in economic forces is unlikely to succeed.

Still we see action and retaliations escalating and we are also seeing some of the fallout as companies lose profits and sales and costs rise.

The one industry which was most in favor of this was the steel industry and the price of steel has risen dramatically.

American producers freed from competitive forces have raised prices on items already in production.

This is just additional profits and higher prices will by the laws of economics reduce demand, reducing jobs in general.

In fact as prices go up for other items the reduced demand will have exactly the opposite impact that the dontard expected.

No surprise there.


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