4chan theory of Trump's plan
(media.kotakuinaction2.win)
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (27)
sorted by:
Trump has no intention to deliberately crash the market.
He took the risk ( as he should have ) that any hit to Wall Street was worth the benefit of incentivising domestic manufacturing via tarifs on imports.
The thing is, everything that has been outsourced overseas was done so because it was cheaper. And it wasn't a decision made overnight or just one thing that prompted it. It was a combination of factors such as taxation, unions, safety laws, etc.
This presidency will last 4 years; maybe we get another Republican after, but eventually they will be another Democrat president.
All these companies that are being incentivized to bring jobs back to the US have to be doing the math and deciding whether it's cheaper to bring the jobs back to the US and take the hit in four or eight years when all the tariffs get dropped again, or to just suffer through the tariffs for the current presidency until things return to status quo and it again becomes cheaper to have everything made overseas.
That's why you have to break the paradigm in the first place.
People look at it as a crash. I look at it as a haphazard reevaluation of the multiplier that security should have given macroeconomic conditions which the president just shifted. That is to say, they were going to go down. The stock market always goes down and then goes back up again, and it has been up. The president just gave people a reason to shift into fear mode whereas they were already looking for a reason.