The USMCA is nothing more than a cronyist arrangement. The U.S.-China agreement is a crapshoot; anything can happen.
But the White House is optimistic about these trade deals, predicting that they will add to the gross domestic product next year.
Speaking in an interview with Maria Bartiromo on the Fox Business Network, White House economic adviser Larry Kudlow believes these developments will lead to the “economy heating up again.” The main premise is the reduction in uncertainty, which he thinks is enough to add about 0.5 percent in GDP.
He told the lovely Bartiromo:
“These trade deals are going to be very helpful. They’re going to reduce uncertainty and probably pick up some important business spending,” Kudlow said. “In ballpark numbers, Maria, I would say we will do half a percent better GDP in 2020 than otherwise would have been case.”
Kudlow added that President Donald Trump is accomplishing stuff, despite being accused of being an isolationist.
“It does show that President [Donald] Trump’s example of being a tough, hard-nosed bargainer on trade and economic matters works,” Kudlow added. “He’s been accused of being an isolationist and every other name around. The fact is he has accomplished stuff here in the trading area that no one, and I mean no one, in our memory has been able to achieve.”
Nothing about the Federal Reserve’s printing presses heating up, of course.
Leave a Comment