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Originally Posted by Illuminaughty
Well the idea is to make it cheaper for businesses to operate in the US, instead of foreign countries by cutting taxes. If businesses stay in the US or come back that will create more jobs, which will help people pay for these goods. The import tax should help keep American goods produced in the country somewhat competitive with foreign countries like China, who's overhead is so much lower because of lets call it lax regulations and treatment of workers. There should be a duty paid to do business in the worlds largest market. Then the government has more money to invest in infrastructure. I think it's a better idea then getting ripped off in every trade deal, with this globalization trend. Just relying on importing foreign goods isn't good for the employment rate of that country.
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the problem with this is China owns a huge chunk of US debt so the US risks having the cost of its debt going through the roof if it screws with the balance of trade, the US is like your stupid kid that pays off one credit card with another card, constantly juggling debt it can never pay back.
Businesses that return to the US will do so with massively automated factories, so wont employ many to do the work, those that cant automate will stay in the cheapest countries because Labour will always be cheaper than taxes in labour intensive industry.
Nothing about Trumps plan works outside of a being a good soundbite to get a not particularly bright electorate to vote for him.
The parallels with Brexit are very close, both are insane for the economies of the countries involved, but are attractive to a populous that wishes their countries could go back in time to some idyllic past when Britain had an empire and the US was supreme