I think that in a few months, we will see the U.S. economy doing very well and somehow rebuilding its industrial base. In the long term, U.S. influence and wealth will make up a much smaller share of the world’s wealth than it does today.
https://www.independent.co.uk/news/world/americas/us-politic...
Note: it is my prediction at 70% (e.g. I think there is 70% that it will happen).
> US imports and exports will decrease over time.
So prices will rise and and government expenditures will fall. Where exactly will that growth come from?
Your labour market has been running at full employment for a while, 4-5% unemployment, there's no leftover hands to help with building up multiple industrial bases. Unless you want massive inflation when all these openings for the rebuilding of USA's industrial base, and need to pay a lot to absorb as much labour as possible to actually happen.
Not even considering in how much risk the investors of this new industrial base will be having to hedge against, who knows when Trump will increase tariffs on their inputs until everything rebuilds internally, financial hedging, oversupplying their warehouses to prepare for shocks, etc. are all quite expensive. Who will pay for it?
Unbelievable amount of damage done in just a month.
Honestly I expected it on his last term.
Oh, that's why Trump is trying to speed up TSMC to build chips on US soil! Now everything makes sense! Surely, TSMC will just do it! And the Chinese will wait for the transition period to finish before they attack the island!
This is absolutely intended to be sarcastic and demonstrate the absurdity that someone who cuts ties with allies would ever do anything to help the next one. And if that next one is threatened with war, it would ever feel comfortable to effectively destroy their only bargaining chip for assured US military help afterwards.
Man, all I know is this year isn't going to end well. For anyone.
Not seeing much restraint there.
I'd say the other way round - rebuilding everything that was outsourced will take a long time, so hard times are ahead. In the long term, I hope the USA will be less dependent on China.
But at the same time the way it was done completely destroyed the credibility of the USA as a reliable partner, both in trade as well as military relations. Countries will organize new treaties, and the USA will be a powerful player but with far less influence than before.
For the coal mines, maybe you could fund them through some museum budget?