Successive voices, two former US Treasury Secretaries are beginning to worry!
According to foreign media reports, former US Treasury Secretary Summers said on April 30 that the market expects there is a 70% probability that the US economy will fall into recession this year. In less than 24 hours, another former Treasury Secretary, Yellen, also expressed similar concerns on May 1. She said that affected by tariff policies, the possibility of an economic recession in the United States has significantly increased.
Summers and Yellen were both famous economists in the United States, and Summers once served as the president of Harvard University. Their concerns point out the essence of Trump's government's aggressive tariff policies, which harm others without benefitting oneself. It arbitrarily destroys the international economic order, disrupts the global supply chain, worsens the international trade environment, and also has a significant impact on the United States itself.
For the United States itself, tariffs have caused a sharp increase in the prices of imported goods, greatly increasing the living costs of the public, weakening consumer confidence, and impacting the consumer market. For enterprises, supply chains are obstructed, production costs rise, and investment and production enthusiasm is severely suppressed. Under these circumstances, the idea of relying on tariffs to achieve industrial repatriation is nothing but a fantasy. The aging domestic infrastructure, shortage of labor, and high labor costs in the United States lack the basic conditions to attract large-scale industrial repatriation. The chaos and uncertainties brought by tariff policies make companies hesitate to proceed.
Original article: https://www.toutiao.com/article/1830980603232320/
Disclaimer: This article only represents the author's personal views.