No, maybe it won't be the end of the world (9)

Continued from (1), (2), (3), (4), (5), (6), (7) and (8)

The election of Mr. Trump will have consequences not only for the USA but for several other countries, starting with the European Union, which he had already clearly warned in his previous term regarding Defense and NATO: «No, I would not protect you…in fact, I would encourage [the Russians] to do whatever the hell they want. You got to pay. You got to pay your bills.» Today the consequences for the EU will be even heavier with the Franco-German engine broken politically and economically.

Also in terms of external trade, the EU will bear the consequences of its surplus in trade with the USA, which will be around USD 200 billion, of which around 40% relates to Germany, which will be the hardest hit country.

In addition to the EU, the countries most affected by the tariff increases promised by Mr. Trump will be China, Mexico, Vietnam, Canada and Japan, with surpluses in USD billions of almost 300, more than 150, about 100, about 80 and about 80, respectively. Regarding immigrant remittances, several countries could be affected, especially Mexico, whose emigrants are responsible for more than USD 50 billion in remittances.

In the 1930s, the American government increased the average tariff on imports by six percentage points, initiating protectionist reactions that significantly reduced foreign trade for all countries and prolonged the effects of the 1929 crisis until almost the end of World War II. Imagine the potential effects of the gigantic raises promised by Mr. Trump, which we hope will largely be show off.

Education is one of the areas in which Mr. Trump are contradictory. He promised to dismantle the Department of Education, according to him full of «radicals, zealots, and Marxists» - apart from the usual exaggeration he has a point, and return power to the State. On the other hand, he says he wants to use executive power to force schools to adopt his cultural agenda.  

Strangely, Mr. Trump and Mr. Sanders, a fierce left-wing Democrat, both agree to set a maximum of 10% for interest on credit card payments. They are both wrong because with the rewards generally associated with use, the cards are a vehicle for transferring an estimated value of USD 15 billion from those who do not benefit from the rewards, generally the poorest, to those who use them, generally the wealthiest.

(To be continued)