You read the title right. Since Trump assumed office, $9 trillion with a 'T' has been swept away. Fears of an economic recession are growing as investors and businesses deal with the aftermath of Trump's massive tariffs, which wiped out roughly $5 trillion from the American stock market within two days of their introduction.
Since Trump's return to the White House, Americans have had to become accustomed to high drama and rapid-fire headlines, as executive orders from the Oval Office have reshaped the country, from repealing LGBTQ rights to gutting environmental regulations, amid fears that America is slipping into authoritarianism. All eyes are now on Monday's markets, as investors fear that the declines will continue. As of Friday, the Nasdaq has confirmed a bear market, closing more than 20% lower than its record high, while oil and other commodity prices have fallen. JP Morgan analysts have also increased their probabilities of a worldwide recession to 60%, warning Americans to brace themselves for the return of inflation. ..
Trump made this latest action because he believes tariffs would drive companies to return to the United States, despite the fact that virtually all economists believe this is very improbable. Working in manufacturing, I see that this concept is faulty. Most Americans would not accept low-wage manufacturing employment, hence the country cannot produce low-cost goods. For example, in Asia, you can recruit 200:1 workers at the typical US manufacturing job wage. If you wanted your fundamental low-cost things to be double or treble the price, we could, but why? For such a big choice, it appears that it was not well thought out, and stories this weekend suggest that this may be the case, since Trump apparently made up his mind at the last minute. According to the Washington Post, Trump did not finalize his plans until three hours before the Rose Garden presentation.