Read more at https://www.channelnewsasia.com/news/world/trump-taps-tv-pundit-kudlow-for-top-economic-post-10044246
(Updated: )
Ricky Lim ·
Kudlow has strongly backed Trump's moves to cut taxes and reduce business regulations - but he has openly criticised the president's tariffs move, arguing in a recent column that any benefits would be vastly outweighed by the costs.
"Steel and aluminium may win in the short term, but steel and aluminium users and consumers will lose. In fact, tariff hikes are really tax hikes," Kudlow said in a Mar 3 column for CNBC, that noted that five million jobs are tied to companies that use steel.
"Some of those five million jobs will be put in harm's way. And if they sell less to foreigners, the trade deficit goes up, not down."
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Posted on :- 02 Mar 2018
Ricky Lim ·
Singapore
I think you may not really understand World trade.
If all Countries in the World is ripping off US, will US be the largest Economy in the World?
Use math to calculate - don't just listen to what Trump say.
US companies are investing everywhere in the World to tap the cheap resources worldwide and sell to Countries worldwide ---- and thus they reap tremendous profit - and contribute to US wealth - and thus become the largest economy in the World.
Now Trump want the cake and eat it as well.
Like · Reply · 1m
Ricky Lim ·
Singapore
US are importing more than they export - because US companies are making goods and services in other Countries and then sell back to US at a cheaper price to US consumers.
If US companies make everything in US, then US consumers will buy American made goods and services at very high price.
This is the mechanics of World trade and investment and division of labour - and is making US economy rich ---- but yet Trump is complaining like crazy.
If Trump mess around with this trade mechanics - it will end up US companies making loss, and worldwide, consumers will turn away from US made good and services due to its high price --- and US Economy will turn for the worst.
And at that time, you can start to praise Trump for single-handedly bring US economy down !
Like · Reply · 1m
Ricky Lim ·
Singapore
Ultimately, who will suffer?
(1) Consumers will have to pay higher price to tariff or inefficient US resources suppliers.
(2) Domestic demand and overseas demand for US goods will fall due to higher prices.
(3) Businesses will suffer lower demand, lead to lower profit or make losses.
(4) Businesses will fire more workers to save cost - lead to job losses.
(5) Economy will suffer, as export and import fall, tax revenue fall, businesses fall, job losses.
US will suffer most - because the whole World will turn against US and its businesses.
Collateral damages will be felt by the World due to Trump's action.
Outcome :- World Economy suffers.
Like · Reply · 1m
Ricky Lim ·
Singapore
For a start, US consumers will see a rise in price of cars, smartphones, computers, electrical appliances like fridge, TVs, aircon, furnitures, windows, doors, chairs, tables, cabinets, ships, planes, roads, bridges, houses etc that are using steel or irons.
And US exports of such items will see a fall into overseas market because it will raise prices - and US exports will become less competitive.
This means that US will start losing business and losing jobs --- because domestic demands and export demands will fall.
Like · Reply · 1m
Ricky Lim ·
Singapore
Trump is starting and will trigger a Global Trade War by levying tariff.
(1) US importing Countries will retaliate by reciprocal tariff on US goods - and US importers suffer as it will have to pay higher prices.
(2) US producers such as shipbuilders, plane builders, fridge builders, bridge builders, housebuilders, car builders etc that require alumininum or steel will have to buy them at higher cost from domestic or overseas market.
(3) US consumers and taxpayers will suffer as they have to buy goods at much higher prices.
(4) Overseas consumers will no longer buy US goods because it will be price much higher due to the higher alumininum and steel cost. Overall it will has an impact on US economy - as domestic and overseas demand for US goods fall.
(5) In 1930s Deep Depression - it is trigger by US starting a trade war by introducing tariff on imports and subsequently lead to World War 2.
Trump is not learning from all the past lessons.
Like · Reply · 1m
"Steel and aluminium may win in the short term, but steel and aluminium users and consumers will lose. In fact, tariff hikes are really tax hikes," Kudlow said in a Mar 3 column for CNBC, that noted that five million jobs are tied to companies that use steel.
"Some of those five million jobs will be put in harm's way. And if they sell less to foreigners, the trade deficit goes up, not down."
---
Posted on :- 02 Mar 2018
Ricky Lim ·
Singapore
I think you may not really understand World trade.
If all Countries in the World is ripping off US, will US be the largest Economy in the World?
Use math to calculate - don't just listen to what Trump say.
US companies are investing everywhere in the World to tap the cheap resources worldwide and sell to Countries worldwide ---- and thus they reap tremendous profit - and contribute to US wealth - and thus become the largest economy in the World.
Now Trump want the cake and eat it as well.
Like · Reply · 1m
Ricky Lim ·
Singapore
US are importing more than they export - because US companies are making goods and services in other Countries and then sell back to US at a cheaper price to US consumers.
If US companies make everything in US, then US consumers will buy American made goods and services at very high price.
This is the mechanics of World trade and investment and division of labour - and is making US economy rich ---- but yet Trump is complaining like crazy.
If Trump mess around with this trade mechanics - it will end up US companies making loss, and worldwide, consumers will turn away from US made good and services due to its high price --- and US Economy will turn for the worst.
And at that time, you can start to praise Trump for single-handedly bring US economy down !
Like · Reply · 1m
Ricky Lim ·
Singapore
Ultimately, who will suffer?
(1) Consumers will have to pay higher price to tariff or inefficient US resources suppliers.
(2) Domestic demand and overseas demand for US goods will fall due to higher prices.
(3) Businesses will suffer lower demand, lead to lower profit or make losses.
(4) Businesses will fire more workers to save cost - lead to job losses.
(5) Economy will suffer, as export and import fall, tax revenue fall, businesses fall, job losses.
US will suffer most - because the whole World will turn against US and its businesses.
Collateral damages will be felt by the World due to Trump's action.
Outcome :- World Economy suffers.
Like · Reply · 1m
Ricky Lim ·
Singapore
For a start, US consumers will see a rise in price of cars, smartphones, computers, electrical appliances like fridge, TVs, aircon, furnitures, windows, doors, chairs, tables, cabinets, ships, planes, roads, bridges, houses etc that are using steel or irons.
And US exports of such items will see a fall into overseas market because it will raise prices - and US exports will become less competitive.
This means that US will start losing business and losing jobs --- because domestic demands and export demands will fall.
Like · Reply · 1m
Ricky Lim ·
Singapore
Trump is starting and will trigger a Global Trade War by levying tariff.
(1) US importing Countries will retaliate by reciprocal tariff on US goods - and US importers suffer as it will have to pay higher prices.
(2) US producers such as shipbuilders, plane builders, fridge builders, bridge builders, housebuilders, car builders etc that require alumininum or steel will have to buy them at higher cost from domestic or overseas market.
(3) US consumers and taxpayers will suffer as they have to buy goods at much higher prices.
(4) Overseas consumers will no longer buy US goods because it will be price much higher due to the higher alumininum and steel cost. Overall it will has an impact on US economy - as domestic and overseas demand for US goods fall.
(5) In 1930s Deep Depression - it is trigger by US starting a trade war by introducing tariff on imports and subsequently lead to World War 2.
Trump is not learning from all the past lessons.
Like · Reply · 1m
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