G7, The United States and Unrest
The start of another G-7 with both Britain and the United States represented by less than wonderful leaders has begun. In Britain, the pro-Brexit party is quickly going to experience what economic chaos feels like. Without an orderly separation from the European Union, Britain and the European Union are preparing for backlogs of goods and essentials. The lack of easy access will bring commerce to a lethargic pace as each side stumbles to approve or reject shipments bound for each side. Trading partners across Europe and elsewhere are raising the barriers to entry at exactly a time where economies are slowing. The unnecessary separation because of nationalist tendencies, pride, leaves all parties worse off. History is littered with examples of economic demise.
In the United States, the current President has gathered enough followers to embody his irrationality. China may be the second strongest market in the world, but the American Consumer is likely not going to be willing to foot the Trump bill. Again Nationalism vs Capitalism is leading to bad policies which inevitably land countries into unnecessary economic problems. Unquestionably, protecting intellectual property is one basis for the current administration’s rift with China. China has worked with international companies, many from the United States, to make products which required a willing and capable workforce. The knowledge transfer by “Designed in Cupertino” products, as well as essentials like agriculture, has allowed insight for Chinese trading partners and economic prosperity for cities that once were dust bowls. The ability of those citizens to peacefully participate in demanding products and services is essential to global stability. Quite simply, protectionism places prosperity in peril.
The concerns raised by demanding compensation for goods and services previously free of tariffs means that prices will inevitably rise. Consumers will pay more and have less. Workers will earn the same while their governments increase tax revenues. These are revenues which hardly assist or filter down, especially to the working class pre-occupied with proud protests and blind support for politicians prancing and pandering for votes. Many in America, and presumably in Britain, believe they deserve better. We do – as long as we vote out fools focused on theatrics.