If you listen to leftist politicians and the mainstream media, we are constantly on the verge of a major recession and President Donald Trump is losing the trade war with China.
However, the facts tell a very different story.
The economy is growing far more than it ever did under Barack Obama, and economists are arguing that Trump’s tariff strategy with China is working in the United States’ favor.
“Today, it’s hard to turn on the financial news, open a business paper or browse an investment website without seeing some doomsayers predicting the impending collapse of the U.S. economy and equity markets because of the latest tariff or presidential tweet. When the markets invariably resume their upward trends the next day, it’s crickets,” Greg Autry, an assistant professor of clinical entrepreneurship in the Marshall School of Business at USC, wrote in an issue of the Los Angeles Times detailing exactly how Trump is winning when it comes to China.
Autry argues that despite many predicting that tariffs would lead to more of a cost burden on American consumers, they are actually hurting China where it counts.
“While economists differ on the effects of the tariffs, there is considerable evidence that they are having the desired effect. Modeling by European economists Benedikt Zoller-Rydzek and Gabriel Felbermayr concluded that, although U.S. consumer prices for affected Chinese products will rise by about 4.5%, Chinese firms will pay approximately 75% of the tariff burden. And as of the end of August, the treasury had collected more than $25 billion in tariffs from China,” he wrote.
This really flies in the face of leftists like Maxine Waters, a lawmaker who suggested that Trump did not have the “expertise” to negotiate new trade deals with China.
Autry notes in his piece that one of the main platforms that helped elect Trump was his dismissal of globalism, an economic theory that had led to an American economy that was struggling while countries like China benefitted.
