In order to "win" a trade war, a country must first have something that other countries want or need. This basic rule defines every other aspect of the conflict, from tariffs to monetary isolation. When it comes to the US there has long been a misconception that Americans "feed off global labor" and that the dollar's world reserve status is the country's only point of leverage.
This is not really the whole story.
Reserve status is helpful, but another thing the US has that most countries do not is (greater) free market access, which generates economic momentum. In other words, even in blue states like California, the US does business more freely and has less socialist regulation than the vast majority of the world and this is why foreign exporters see America as a golden market for their goods.
It's a bit ironic, but, there are many countries that could, over time, match or surpass the US as a coveted consumer market; "winning" a trade war by becoming more independent and successful. However, none of them will do it because this would mean giving more freedom to their citizens to purchase what they like and operate businesses without constant bureaucratic constraints.
This is why socialism and communism will always lose in an economic war with a country that has free markets. They cannot compete because they restrict their own population's ability to compete. Without a healthy consumer market the only thing these nations can do is produce and export to more free economies willing to buy.
“We need to fight these tariffs dollar to dollar” -Doug Ford
“As Donald trump is trying to inflict pain on every Canadian, that we inflict pain right back” -Also Doug Ford@fordnation READ MORE AT SOURCE »Originally reported by ZeroHedge NewsHOW DO YOU SEE THIS STORY?Choose your pill. Your vote is anonymous.0 TOTAL VOTES
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