Re:A strengthening dollar is bad for the world economy
by swiftisthebest on Thursday December 01, 2016 @11:34AM
(#13080661)
USA wins the trade war. We have all the money.
Re:A strengthening dollar is bad for the world economy
by tdb7893 on Thursday December 01, 2016 @11:45AM
(#13080778)
I don't think people really "win" trade wars. My impression is that you only lose less badly.
Re:A strengthening dollar is bad for the world economy
by dragonwriter on Thursday December 01, 2016 @11:50AM
(#13080828)
As with any war, trade wars are "won" to the extent that the ends sought are attained, usually by the political capitulation of the opposing party to end the war, rather than directly by the actions used to fight the war.
Also as with traditional armed conflict, it's rather often the case that neither side achieves a clear and unequivocal realization of its aims and that both claim a vindication unsupported by the concrete outcomes, with serious questions as to whether either achieved anything worth the cost suffered.
Re:A strengthening dollar is bad for the world economy
by tdb7893 on Thursday December 01, 2016 @11:57AM
(#13080916)
It's true that you might win by forcing demands. Trade isn't a zero sum game and requires cooperation so achieving a favorable result via "war" is unlikely. I guess I didn't state it well but even if we "win" we are unlikely to be any better off.
This ignores the reciprocal actions of our trade partners. You can bet that if we raise tariffs on goods from other countries, those countries are going to do likewise to our goods (populism is all the rage everywhere these days). Along with the strong dollar, US goods will be doubly uncompetitive. Export sectors of the US economy will crash.