Senior economics lecturer Renaud Foucart argues that Trump’s threat to introduce more tariffs on goods coming into the US is in some ways a continuation of Biden’s approach, and the problems in the global economy go far beyond Trump’s protectionism.
China, after decades of mostly export-based growth, must now deal with massive problems of industrial overcapacity. The country is now trying to encourage more domestic consumption and to diversify its trading partners.
Europe, despite a very tight budget constraint, spends a lot of money in the subsidy race … All those subsidies are hurting the world economy and could have easily financed urgent needs such as the electrification of the entire African continent with solar panels and batteries.
