With less than two weeks remaining before Donald Trump pledges the oath of office and takes over the reins for the U.S. government, one thing has become abundantly clear… he intends to lead rather than react as had been the case for the retiring President Barack Obama.
And what we mean by leading is that rather than waiting for events to unfold, and react to situations or crises, Trump has already proven that he intends to flex his will on economic, foreign, and governmental policies from day one.
That type of leadership can quite often be infectious, and it is now including the leading candidate in France who may very well take over once Francois Hollande’s term in office is over.
Far-right French presidential candidate Marine Le Pen has been inspired by US President-elect Donald Trump’s initiative to repatriate car production. She wants to see manufacturing back in France.
Speaking about Trump’s policy on France 2 television, Le Pen said it was “economic patriotism, (and) intelligent protectionism.”
“I don’t mind explaining to French companies that they can not escape tax that they should be paying in France, that they cannot go offshore without suffering the consequences… A choice has to be made, a choice of patriotism,” she said, as quoted by Reuters.
French car makers Renault and Peugeot have big plants in Spain, Russia and Eastern Europe.
Trump has pledged to dramatically hike tariffs on US cars made abroad, as moving production out of the country costs American jobs. The president-elect also praised Ford for scrapping a plan to build a plant in Mexico and Fiat-Chrysler’s announcement to create 2,000 jobs in the US.
Socialist Arnaud Montebourg and left-wing independent Jean-Luc Melenchon also praised Trump’s policy. – Russia Today
Nationalism and protectionism aren’t new in themselves, and if performed incorrectly can lead to dire consequences… such as the Smoot-Hawley Tariff which helped precipitate the Great Depression in both Europe and the United States. However here in 2017 the outlay of global production is much different than in the 1920’s, since it is not foreign goods and businesses that would be affected from trade or tariff policies, but rather American businesses who produce in foreign countries and then ship those goods back to the U.S. to sell them to the American people.
In essence most tariff policies today are directed at U.S. companies, not foreign ones.
Industrialization and growth are beneficial to all, and free trade as defined before NAFTA and GATT are actually good things as all one has to do is look at what Russia and China are doing through their creation of free trade zones in both Asia and Eurasia. But when trade policies are focused solely on benefiting multi-national corporations at the expense of the countries they claim to call home, then the responses to this will be a death knell to the politicians who promote it, and bring the pendulum swinging back to the other side in the electing of nationalists like Trump and Le Pen.
Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.