Trump Prepared to Hurt the Economy: “Security is More Important Than Trade"
The New York Times reports Trump Vows to Close Border, Even if It Hurts the Economy.
President Trump acknowledged Tuesday that closing the southern border with Mexico could damage the United States economy, but said protecting America’s security was more important than trade.
In remarks from the Oval Office, Mr. Trump reiterated his threat to shut the border if Mexico, America’s third largest trading partner, cannot restrict a flow of asylum seekers trying to cross into the United States. But the president’s economic team, concerned about the damage from such a move, said it was looking for ways to limit the fallout if Mr. Trump does do so.
“Sure, it’s going to have a negative impact on the economy,” Mr. Trump said, adding, “but security is most important.”
“Security is more important to me than trade,” he said.
Republican lawmakers, economists and business groups largely disagree with that assessment and warned this week that closing the border could cripple the flow of goods and workers and devastate American automakers and farmers, as well as other industries that depend on Mexico for sales and goods.
It's not often I agree with the collective wisdom of economists, but this is one of those times.
I am aware of companies holding war room scenarios on how to circumvent traffic lines at border crossing choke points. Food, auto parts, medical supplies are among the impacts.
A few days ago when these threats first emerged, I commented Trump Threatens to Close Entire Mexican Border: Instant Recession If Carried Out.
I am not the only one to mention the R-word. Here are some snips from the article above.
“Closing down the border would have a potentially catastrophic economic impact on our country,” Senator Mitch McConnell, Republican of Kentucky and the majority leader, said in an interview. “I would hope that we would not be doing that sort of thing.”
Mark Zandi, the chief economist at Moody’s Analytics, said that “a full shutdown of the U.S.-Mexican border of more than several weeks would be the fodder for recessions in both Mexico and the U.S.”
Severe and Sudden Impact
The impact will be so severe and sudden, if Trump is foolish enough to try this, he will be forced to quickly drop it.
Mike "Mish" Shedlock