Trump’s trade war will not push America into a collapse

Listen to this article

On Monday, the Labor Day in the United States was a national holiday and marked the end of the summer holidays. Now, it is time back to business and school. But, the grinding political agitation of Washington never eased this year. It escalated tension showing even in the memorial events, including the funeral of John McCain. The behavior of the U.S President Trump was considered disgraceful. But the U.S President knows his worth and presumably thinks that for his supporters partisanship tops everything else. There is the strange contrast that dominates just about everything in America at the moment. There is seemingly a successful economy and the dysfunctional politics at both a national and international level. The United States is on an economic roll on nearly all conventional measures. You see this in company profits, running at record levels.

There are always a host of Labor Day shopping deals, everything from shirts at Brooks Brothers to Canadian pork tenderloin at Whole Foods. But this year apparently one of the key indicators that Americans are feeling good regarding their finances is the switch from cheaper meats, notably chicken, to beef for their barbecues. An estimate by the Conference Board indicated last week that consumer confidence is at an 18-year high. Demand will be further boosted by the tax cuts that come in during the next few months. Interest rates will rise, but we have been assured by the new chair of the Federal Reserve Board, Jerome Powell said that there will be gradual, and of course, if the economy falters, then the Fed will ease off. Last week talks on a redesigned Nafta were considered to be going fine. The US-Canada trade relationship shouldn’t be considered the great global issue.