The trade battle that has been actively rising between the two super powers of the world is resulting in the rising of the level of tensions within the U.S and the ever rising trading giant, China. This rising of the tensions is likely to result in ramifications on the global level. The economics professor at the well-known Wellesley College, Mr. David Lindauer discussed the likely causes as well as the impacts of the trade wars, resulting in the rising amounts of the tariffs, along with the international matters that the labor in addition to the policies that are related to the economy on the whole.
According to most of the renowned credibles economists throughout the world this budget deficit on the fiscal scales has been the direct consequence of the decisions by the president of the U.S. Mr. Donald J. Trump and the congress’ decisions which led to a major reduction in the level of the taxes implemented on the people which led to a ginormous rise in the expenditures of the govt., which is basically the consequence of the trade deficit more than that of the Chinese companies’ behavior as well as the Mexican public.
According to Mr. Lindauer, the alternate of trade wars which would effectively help the world would be in his words: “Reducing trade deficits, whether with individual countries or for the nation as a whole, should not be a target of U.S. trade policy. The U.S. has run a trade deficit continuously for over four decades, in good economic times and bad ones. The trade deficit simply is not the terrible outcome the president suggests.”
The Trading with various nations was not the reason which the U.S working class is facing all these problems. The misconception that these problems could be solved by an increase in the level of the tariffs and the trade war between the two countries are totally vague. The trade at international level is not the major issues that the world is facing, but it is the rise of the unmanaged and ill-organized economic rationalist approach which seems to grow without any stopping.