by Tom Aswell, Publisher of Louisiana Voice
As Vice President Pence QUIETLY CATNAPPED through the State of the Union Address on Feb. 5, Donald Trump declared, “We will never be a socialist country.”
Fast forward to May 13 (that’s the day before yesterday and barely three months after that SOTU declaration.
Trump ramps up his trade war with China, imposing new tariffs on Chinese imports that he claims will bring money into the U.S. treasury when, in fact, the proposed tariffs only mean that U.S. consumers will be paying more for goods from China.
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.
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?
Tariffs. Trade war. Who wins? Who loses? What might the impact be on the State of Louisiana and its businesses?
From a pure theoretical economic standpoint, which states would be hurt by a trade war?
If you looked only at two numbers, GDP and percentage of the GDP, two states, very important to the political future of Donald Trump and the Republican Party, are Michigan and Louisiana.