DONALD TRUMP'S FEAR FACTOR FOR AMERICAN AND GLOBAL ECONOMY.

So, is President Elect Donald Trump going to attempt to rule America and the global economy with fear and threats?

With Ford Motors now having buckled to the fear and threat of not doing what PEDT wants it to do, and cancelling its planned investment in Mexico, many other companies in the United States will have to consider the implications of not doing what the incoming President wants them to do.

I said President, but I could easily have said the Dictator, because, I fear that that is actually what Donald Trump will represents upon taking office. Ford Motors, I suspect, has not made the volte face decision based on sound economic and financial reasons, but is doing so because it fears the consequences of going against Donald Trump. It is making this decision based on political reasons.

With the incoming Dictator already announcing his intention to inflict a massive 30 per cent import duty on some goods being imported into the United States, Fords Motor might well have calculated whether it might not be more economical and profitable for it to down tools and building in Mexico and transfer its planned factory back to the United States. 

However, if this is the case, it is rather surprising that it has capitulated without even a fight or any attempt to wait and see and test out whether Dictator Trump will be able to really extort compliance from the industries he is literally dictating to.

After all, with labour and manufacturing costs probably significantly higher in the Unite States, it does beggars belief as to whether Ford Motors will be able to make as much profit, making its cars in the US, as opposed to in Mexico. Unless it is going to charge more for selling them in the United States and abroad, than it otherwise would have done.

All of which could lead to less cars being built at higher cost and fewer being sold. The upside, arguably, will be that 700 new jobs will be created in the United States, excluding jobs created or maintained in the relevant supplying industries, as well as other multiplier effect these jobs will have on the American economy.

Whatever is the starting point of ones analysis of this fear factor which President Elect Donald Trump has introduced into the America's national economy and industry, and its likely negative impact on other countries, one thing which everybody should be concerned about, is the fact that it has introduced the concept and practice of a 'command economy' into the 'free market' free for all concept  of the American industry.

Donald Trump's message to American companies which are considering setting up businesses abroad, is that they could be doing so at their great peril, because his administration will do everything to discourage them from doing so. Including taxing them into the ground, even at a time when his administration might be looking at reducing taxation on the rich and removing Obamacare support from the people who are in great need of it.

If Donald Trump was running a private or public company and placing this kind of pressure on his competitors, he might well be in breach of some company regulations. If we consider him to be in charge of USA PLC, he might also be considered at risk of breaching some legal and ethical regulations.

While it makes alot of sense for a country  to try to create and maintain jobs nationally, how it does so is of crucial importance, as no country, even the United States, can maintain a health economic life, behaving as if it is an island unto itself. Markets are very important to all countries and economies, and no nation should expect to have an unfair and preferential position of being  the main or sole producer, but consuming nothing or as little as possible of what other countries produce.

In giving in to Donald Trump's threats, American companies, such as Fords Motor, could be helping to create a very unhealthy, undesirable and 'undemocratic' development in the relationship between their government and industry. Especially at a time when there is already serious concerns about the relationship between business and the American government.
It is a most concerning situation, and one which could lead to 'nationalism' being paraded as 'patriotism.'


Americans should be afraid; very afraid of and struggle to avoid the entrenchment of this unhealthy development.