Alfonso Llanes, Master Degree in International Development
Trade deficit is more about political rhetoric than economics. Trump made use of his propaganda machine during the campaign to gain support from those he perceived as being left out of the world economy. This might have given him the presidency but his slogans have nothing to do with trade economics.
Business decisions are made based on market economics not on presidential edicts of where to locate a new factory or how many jobs to create in a given sector of the country-economy. His stances are popular with the unemployed because no one wants unemployment or be left out of the domestic budget, however, his bombastic speeches don’t transform economic realities. Current jobs are being created in green energy but the president wants to create jobs in the coal industry which is a dying occupation in the economic cycle started by the industrial revolution.
Abandoning innovation and technological change will only lead to more deficits as other countries modify and adapt to a changing world economy and the US stays stuck in the mud of political rhetoric and pompous empty promises.
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