You read that title correctly. $9 Trillion with 'T' has been wiped away since Trump took Office. Now fears of an economic recession grow as investors and businesses grapple with the fallout of Trump’s sweeping tariffs that have wiped out nearly $5 trillion from the American stock market within two days of the announcement.
Since Trump returned to the White House, Americans have had to grow used to high drama and rapid-fire headlines, as executive orders from the Oval Office have reshaped the US, from stripping back LGBTQ rights to gutting environmental regulations amid a sense that America is slipping into authoritarianism. Now, all eyes are on Monday’s markets amid fears that the drops will continue. As it stand Friday, the Nasdaq has confirmed it is in a bear market, ending more than 20% below its record high close, while the prices of oil and other commodities have been in decline. JP Morgan analysts also boosted their odds on a global recession to 60% and has warned Americans to brace for a return of inflation...
Trump made this most recent move because he dreams of a return of American manufacturing might, convinced that tariffs will force factories home to the US, even though almost all economists think that is highly unlikely. Working in manufacturing I understand that this premise is flawed. American cannot manufacture low cost good as most Americans would not take these low paying factory jobs. For example in Asia you can hire 200:1 workers at the average US manufacturing job pay rate. If you wanted you basic low cost goods double or triple in price sure we could do that, but why? For such a momentous decision it sure seems like it was not thought out and from reports this weekend this may be true as Trump reportedly made up his mind at the last minute. According to the Washington Post, Trump didn’t arrive on an exact plan until just three hours before the Rose Garden announcement.
The only thing “liberation day” did was start the liberation of the money from the middle class!
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