Trump and Trade

DSC_7176.jpg

Drake University students stand outside of the Commodity Futures Trading Commission (Jack Hellie)

By Jack Hellie

Americans across the country remain uneasy with the incoming administration of Donald Trump for a variety of reasons. He promises a strong national defense and a return of manufacturing jobs to the rust belt. How do those two promises interact?

We don’t know how Donald Trump will accomplish either of these promises, but we have a hint when it comes to trade. While campaigning hard on negotiating better trade deals for the U.S. and keeping manufacturing jobs here, we have an indication on how we could see that take effect. The Carrier deal that Trump claims to have negotiated was unprecedented. The president directly intervening with a private corporation is unheard of, and a frightening prospect depending on one’s viewpoint.

But history should be considered. In the study of political economy, a quote that often comes up is, “when goods stop crossing borders, soldiers will.” There is a concern that if a Trump Presidency rejects trade agreements, that our diplomatic ties will crumble under the vices of isolationism.

Economics gives nations a shared interest. From what we’ve seen from Donald Trump as president elect, we can not predict what he will do as president, nor what effects his policies will have on the global economy.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s