Tuesday, January 3, 2017

#Trump Blasts General Motors, Other Companies Fear Similar Attacks

News
Politicians say potentially foolish things, well, because once they take office things get 'political' really fast. Populous Tweets such as "Make in U.S.A.or pay big border tax!" may boost his approval ratings, but trade is far more complex than trade deals, taxation, and bold words. Imposing tariffs without considering currency fluctuations will lead to declining investment and economic activity, retaliatory tariffs, and increasing protectionism. Humanity has already done that with serious consequences.

A repeat of history, however, is likely since human behavior, regardless of quiet or blustery leadership, is relatively constant over time. While America is riding a wave of optimism over the Trump Presidency, it's highly likely it will fade quickly unless politicians start thinking in terms of the invisible hand rather than individually.

Headline: Trump blasts GM for Mexican-made Chevy Cruze

President-elect Donald Trump took aim at General Motors (GM) for making a version of the Chevrolet Cruze in Mexico and selling it in the U.S., further signaling the likelihood of a showdown with the auto industry over free-trade policies.

"Make in U.S.A.or pay big border tax!" Trump said on Twitter.


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