Trump Targets Canada for retaliatory tariffs in WTO complaint
I’ve read a lot of articles regarding Trump Targeting Canada for retaliatory tariffs in his new WTO complaint. All of the articles read as biased in my view, biased toward Canadian big industry and biased towards the political class in Canada. Canada is putting itself in a position where it’s cheerleading to make the Trump administration change it’s ways. This trade war could have been an easy win for Canada if you ask me, it also could have made Trudeau look like a genius.
In my view, all Trudeau had to do to stop Trump’s tariff’s in their tracks was to match the Trump administration’s regulatory policies as well as their tax incentives for business. Canadian businesses would have loved it, Canadian consumers would have loved it and Trump would have looked like a moron for screwing with Canada. Why? you ask because nothing else would have changed and these changes wouldn’t even have to be permanent. Being that on the global stage Trudeau at least presently is more beloved than Trump is, what I proposed would have been a dagger right in the heart of Trump’s boisterous posturing.
Instead, the mistake made by Trudeau’s Liberals was to do what he was told by his entitled welfare receiving corporate masters. Most of the industries Trudeau’s protecting based on his parties tariffs are all receiving some type of government welfare the rest of us lowly surfs aren’t entitled too. Based on his arrogant attitude, Trudeau wouldn’t even need to explain anything to them, they’d get a tax break and automatic subsidies as long as the trade war lasts. What would have been great about Trudeau doing my proposed plan is how it would be received by the U.S press. Trudeau more conservative the U.S president, Trudeau slashes taxes to protect Canadian industry while also protecting the U.S consumer.
Based on my proposed plan the Canadian consumer wouldn’t feel a thing, furthermore because the Loonie is lower than the USD Canadian businesses could still compete in the U.S with Trump’s tariffs. My plan would also allow Trudeau to be as arrogant social justice self. But no, that’s not what happened, what Canada is experiencing right now is absolutely moronic. I’m not sure how this will play out, but if I were Trump I would play cat and mouse until Canada renegotiate NAFTA. Canada is only 2% of U.S exports, many U.S citizens might forget there’s a trade war with Canada in a few months, furthermore with Canada out of the picture, U.S businesses can then start to focus on U.S buyers.
Another thing being overlooked is the possibility that a lot of Canadian companies reliant on the U.S to survive simply closing their doors and heading to the United States. Trudeau’s Liberals have been growing the public sector rapidly, well without the private sector, those public sector jobs become a huge burden on the taxpayers. Furthermore, Trudeau’s Liberals intentionally ran a deficit, this trade war is putting a lot of pressure on the Bank of Canada to raise interest rates. I have to be honest when I say that I don’t know why the Canadian dollar is so high now. In my view, there’s only one way to fix the credit disaster in Canada and that’s to inflate the currency and raise interest rates.
Actually, a crash would be preferred in my opinion because economic crashes tend to wake people up. Canadians, for the most part, have been riding high which on Keynesian economics and the longer it takes for a crash to happen the worse it will be when it arrives. The worst part of a Keynesian economic crash is not the money, it’s attitudes of the people. Because the average person has no idea what’s going on, if the Canadian economy crashes say 15 years from now, chances are no one will know how to fix, nor will any Canadian have any desire to solve the problem. Argentina as an example has a hyperinflation problem that stems from 35% of the employed workforce being in the public sector, not only are 35% of Argentinians working for the government but many are of these government workers are unionized.
money can’t solve this problem, Gold can’t solve that problem, even a dirt monetary standard can’t solve their hyper-inflationary problems because it’s embedded in their culture. The people expect the government to fix the ‘insignificant’ economic problem, the people expect a golden calf and if Moses comes down from the mountains with ancient rules of free market economics, the people will demand Moses bring back the good times the Pharaohs of Egypt provided. There was a lot of wandering in the desert before the ancient Hebrews were able to create a sustainable economic model. Trump is providing Canadian governments with an opportunity to look themselves in the mirror.
What’s not being talked about is that Trump’s protectionist, America first type of governance might become the new norm for Republicans and Democrats moving forward. If this happens, these trade disputes with Canada and the U.S will continue, maybe the future president of the U.S might not be as boisterous as Trump, but he might have the same policies and anytime this future president feels like Canada is being unfair, he might retaliate, because remember what Donald Trump is doing is setting a precedence. If one of the U.S allies budges on their economic policies Trumps won! Meaning that the people know it’s possible which translates to future U.S Presidents being forced to add some of Trump’s economic policies on their political platforms.
Interesting times ahead.