As controversy and speculation have arisen in recent weeks, Trump’s plan is nearing a roadblock, imposing tariffs on almost every country worldwide, and plummeting Wall Street. Goldman Sachs, JP Morgan & Chase have predicted a 60% chance that America will go into a recession. However, Trump’s mastermind plan has a chance to work and expand the economy more than ever.
The stock market has crashed over 20% in the past month, but he’s doing it intentionally. The target is to push cash flow into treasuries, forcing the Federal Reserve to slash interest rates in May. With these lower rates, the Federal Reserve can refinance trillions of national debt inexpensively while weakening the dollar and lowering mortgage rates.
Now, why the tariffs?
Tariffs force companies to build in the US to dodge them, and they also force farmers to sell more of their products in the US, which ultimately lowers grocery prices. There’s a controversy that he is burying the United States, but the memo seems to be “Short-term pain, for long-term gain.” The United States is currently 36 trillion dollars in debt, whereas in 2024, when Joe Biden was still in office, the United States generated a total income of 4.9 trillion in revenue, but spent a whopping 6.8 trillion dollars, where a spending deficit is 1.9 trillion dollars. The United States ended up paying 1.2 trillion dollars in interest rates on its 36 trillion in debt. To put that into perspective, the military funding is 800 billion dollars, 400 billion less than what we pay in taxes. The real question that Americans ask is, “How many more years will it be until our interest rates are more than our total revenue?” The entire problem is through the building debt, and the most efficient way to cut back on our debt is through Tariffs. For example, in 1995, Nancy Pelosi, a Democrat and former Speaker of the House, had a presentation in which she advocated for imposing tariffs on China due to the unfairness in the eyes of America. (https://www.youtube.com/watch?v=LayOiPkvKBw) In 1995, the US Trade deficit with China was 34 billion dollars, where the average Tariff on Chinese products was 2% and the average tariff on American goods in China was 34%. The percentage of allowed American exports in China was 2%, and the percentage of Chinese exports allowed in America was 33%. The number of jobs supported by US trade in China was 10 million jobs in comparison to America’s 170,000. Fast forward to 2024, the 2024 trade deficit with China is now 295 billion dollars, which is a 261 billion dollar increase since. Why has it taken so long for anybody to make a change to this?
The US economy is viable for 39% of the world’s purchases, meaning we are the largest consumers by far. China is one of the biggest exporters and tribes in our market. To cut back on our debt crisis, we must impose tariffs on Chinese goods to see any profit within the next couple of years. The tariffs on other countries have shown some sort of hope, because they are willing to discuss trade negotiations with the US.
The National Debt Crisis is something that needs to be fixed, and if not taken care of soon, the debt will keep rising, which will bring the economy to a standstill within the next 10-20 years. It’s about time that we cut back on our debt and focus on the future.
