For example, american car factories only make 70% of their capacity. European car factories currently export 50-60% of their product to the USA.
So if there is any idea with the tarriffs (debatable), it’s that the USA will have to grow domestic production (easy) while the rest of the world needs to shrink production (hard).
In other words, there are no other consumers rich enough to buy all this stuff.
Yes, I agree. Just as with the production/consumption disruption, the current US administration seems to be abandoning the Pax Americana commitments that led to a world of interrelations and dependencies that went beyond trade and economics. This has huge implications. The usa still has a very large military capacity, but the balance of power and what it is going to be used for…these are now in flux in a way we have not seen in living memory.
In a way, its the same logic being applied: that Europe or south America or whatever places are not capable of becoming a rival global power.
This is exactly what they think.
For example, american car factories only make 70% of their capacity. European car factories currently export 50-60% of their product to the USA.
So if there is any idea with the tarriffs (debatable), it’s that the USA will have to grow domestic production (easy) while the rest of the world needs to shrink production (hard).
In other words, there are no other consumers rich enough to buy all this stuff.
Be that as it may, when security considerations become involved - and they are now involved - economic matters largely take a back seat.
Yes, I agree. Just as with the production/consumption disruption, the current US administration seems to be abandoning the Pax Americana commitments that led to a world of interrelations and dependencies that went beyond trade and economics. This has huge implications. The usa still has a very large military capacity, but the balance of power and what it is going to be used for…these are now in flux in a way we have not seen in living memory.
In a way, its the same logic being applied: that Europe or south America or whatever places are not capable of becoming a rival global power.