Post-World War 2 System

In the world of economy, quite a few things are as obscure as what goes around the mind of the ones in charge. That is what appears to be the case in the article written by Douglas Irwin, where he tries to analyze Trump’s economy policy and what it means in the long run. It does starts pointing out that nothing is known about where the leader of U.S. aims to, since all his moves seems to either be erratic or to empower the country while changing the post-World War 2 system that was, ironically, imposed by the U.S. in the aftermath of the chaos due the lack of international cooperation.

The main point to prove this apparent effort to break paradigms is the sudden departure of the U.S. from one of its biggest treaties, the Trans-Pacific Partnership, and the menace of either leaving the NAFTA too or reshaping it to better fit their interest. In the same line of thinking there is also a signalization to the levies to importation of steel and aluminum, a strategy that retailed quite bad among the European Union and the neighboring countries.

The same analysis points to the risqué of doing the same kind of movements in other markets like the automotive and imported parts, a movement that is also signaled as bad, and a declaration of war not to commercial partners, but internal producers, since most of the factories do hire external work force. This has already happened with the example of several agreements of factories in Mexico that got last minute cancelations, which in turn dropped the stocks of said companies and resulted in losses and the consequential impact in the U.S. economy.

The same analysis does keep going with the line of thinking; about either Trump’s goals being to force partners to offer them a better deal; or reshaping their actual supply chains and production schemes to become an inbound market instead of relying in importations as a way of satisfying their internal market needs. As later in the article is

mentioned, the fact that American trade deficit is due the argumentation in consumerism, which collides with Trump’s intentions of increasing exports while diminishing imports. But this will be covered later at better extents.

There is also the mention of U.S. stance against China, an economic competitor, that is rising quite fast and menaces the economic supremacy, of U.S. As said in the opinion article written by Gary Shapiro for the Fox News: “In short, we are chasing butterflies, while China is investing in its future. We have switched roles, accepting passivity and dysfunction, while China speeds to surpass us.” (Gary, 2018). This in reference to how China is setting its aim to invest into the education and also to develop work force while America is busy blaming the others for their own inner failure due to their inability to cope with consumerism.

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