While a meeting with the Trump administration on Wednesday with the head of the European Union signifies a possible deal to make a deal between some of the traditional allies regarding trade, there is still a tremendous amount of uncertainty that has put somewhat of a drag on a robust economy. Recently, in a Facebook Live interview, I asked Tulane Economist Peter Ricchuiti about the trade battle among the allies and how it appears to trigger a sense of economic nationalism.
Below is his response and a continuation of a discussion about the US economy, repatriation of dollars due to the recent Republican tax cut, the stock market and natural gas and boom within Louisiana. Below, you can watch the entire video of our conversation.
Louisiana supported Donald Trump like no other state in the country. This is Trump Country. So is Iowa, Kansas, parts of Michigan, Pennsylvania and others. However, according to many experts, including Tulane's economist Peter Ricchuitti, Louisiana is being hit the hardest now than most states and has a significant amount to lose, should the tariffs keep coming.
Ricchutti discussed this issue during the fourth segment of our Live Stream interview recently.
According to President Donald Trump, the United States cannot compete in global trade because of import tariffs. Ultimately, the president says, the cost at the market is too high for American products. But, is this the only issue for whatever deficit this country might possess as we engage in a trade war of sorts with our closest allies and against one major competitor, China?
According to Tulane economist, Peter Ricchuiti, there are a number of reasons for the inbalance and not just tariffs.
Make America Great Again has been the rallying cry since the onset of Donald Trump’s bid for the presidency. In fact, according to many experts, during the course of his brief presidency, the economy pretty much has been great. Part of the reason so far has been Trump’s relaxation of regulations which businesses have found suffocating. Also, many experts and business people point to the recent tax break. But, what exactly does “Make America Great Again” mean in the area of its economy?
How is Louisiana's economy doing now that the oil prices have improved, especially since Louisiana is so dependent upon that industry? There have been reports about a poor Louisiana economy, so is it fair to blame the current governor, John Bel Edwards? Is the United States losing the manufacturing battle against the world as President Donald Trump has been claiming?
The US economy is booming. Stock market has soared yet, the first six months of 2018, it has sputtered. Oil prices have climbed, yet, the industry has not yet gushed back. We're in the middle of the second longest economic recovery in history, yet, fears of slow down persists. The US is taking on China and its best allies in the first shots of a trade battle due to tariffs. Economically, all systems are on “go”, full speed ahead, but uncertainty linger.
So, what gives? Has the economy been too good? You know, what goes up, must come down? Or, have deregulation, tax cuts and a bubbling business climate built up such a mighty buffer that any economic leaks due to shifting alliances and trade strategies won't penetrate the optimism?