We’ve been hearing a lot about the direct human impact of President Donald Trump’s isolationist tendencies and policy proposals. But what do they mean for the U.S. economy?
One thing we keep hearing when we talk about his economic policy goals is that we risk sparking a trade war.
But what exactly is a trade war? What does that look like? What would it mean for your own personal and financial security? And what could it mean specifically here in Southeast Michigan and Detroit?
Detroit Today host Stephen Henderson speaks with economist Dean Baker, director of the Center for Economic and Policy Research, about those questions. He says Trump’s protectionism could pit himself against some of America’s largest corporations.
“If (Trump) tries to beat up Mexico, what happens is… Mexico might just say, ‘Oh, guess what? We’re not going to honor Pfizer’s patents on prescription drugs.’ So these drugs that they’re charging $20,000, $30,000, $100,000 for in the U.S., you can get them for $200. Pfizer would be very upset,” says Baker.
“I don’t think the prospects for a trade war look very good from the standpoint of the United States if Trump were to go that route,” he says.
Click on the audio player above to hear the full conversation.