Comment by Kye
12 days ago
Maybe I never got to the part of an economics education that covers exceptions having stopped at intro econ, but don't trade wars almost always lead to bad times?
12 days ago
Maybe I never got to the part of an economics education that covers exceptions having stopped at intro econ, but don't trade wars almost always lead to bad times?
The theory is that it leads to worse outcomes for the weaker partner and less-bad outcomes for the stronger one.
- People used to think Japan was going to overtake the USA, until a short trade war in the 80's sent Japan on a downward spiral.
- The trade war against Russia hurt the West a lot with higher energy and food prices, but it whacked the Russian economy very much harder.
- The same thing can be said for the West vs USSR - it hurt the West, but bankrupted the USSR
Isn’t the US the weaker partner here?
Struggling to understand in which context the US is the weaker partner.
- GDP [0]
- Total wealth [1]
- Military
- Demographics (US - growing, China - aging and shrinking)
- Soft power
[0] https://tradingeconomics.com/
[1] [https://www.ubs.com/global/en/family-office-uhnw/reports/glo...]
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