The World Economy And The Reaction To Tariffs

 

The United States of America has imposed tariffs on multiple countries. This impacted the stock market causing a degree of alarm. The trade war with China never ended. The Biden administration did not make an attempt to reverse Trump's economic policies from 2017. Mexico, Canada, and the European Union countries are going to see an increase in tariffs on their products coming into the United States. The response from France, the United Kingdom, and Germany was to impose tariffs of their own in retaliation. What the Trump administration is trying to do is exploit economically counties of Europe, Africa, Asia, and South America. The funds that come from tariffs those believe will enable the government to increase revenue without federal income tax. The problem is that the United States does not have the manufacturing base. To an extent the country has been deindustrialized from globalization. Inflation is not under control and higher prices on goods causes more challenges for the public. Developing nations are going to be disproportionately effected. Consumers might begin to panic buy various items. The corporate elite are not going to face any hardship. Tariffs can indirectly benefit the wealthiest business owners. Foreign products are going to disadvantaged to favor American goods. Consumers around the world are going to pay more for food, clothing, cars, and other services. The new wave of tariffs causes concerns about a coming economic crisis.    

The Professional job Recession

 

Economists have noted there is a decline  related to industries such a tech, consulting, and finance. Various corporation across numerous industries are doing layoffs. The traditional office job could be experiencing what occurred with manufacturing. The common description of this is white collar recession. To be precise, it is a professional job recession. The common term is misleading, because it claims to be only happening in certain occupations. Workers with higher education and multiple skills are still subject to the exploitation of a capitalist system. Education and working for a particular company was claimed to protect workers from layoffs or job loss. Since 2022, layoffs have increased in the white collar classified jobs. Searching for positions has become more difficult or companies slowdown hiring. Those who remain employed are doing more work for less pay. What the global economy is experiencing looks closer to the 2008 financial meltdown. The professional worker class is not protected. Blue collar work was subject to disruptions in the economy. White collar work was shielded to an extent. The professional worker is getting closer to the conditions faced by the working class on a regular basis. The reason most cannot recognize the exploitation of the professional class was related to job benefits. Paid vacations, healthcare, and possible promotion were common benefits corporations offered. Overtime, such benefits were either reduced or disappeared. The professional managerial class and business elite can exploit the workforce to their benefit. The professional job recession will be exacerbated by more supply side economic policies, automation, and outsourcing.  

The Kenya-Germany Migration Deal

 

Germany and Kenya have reached a migration pact. The agreement allows Kenyans who are skilled and semi-skilled to work in Germany. Those skilled professionals of Kenya are not be provided jobs in their country. Germany wants to fill certain positions. This might sound like a positive economic development, but there are some concerning stipulations. Kenyans in Germany could be repatriated who have uncertain legal status. The pact could create a brain drain for Kenya and subject Kenyans in Germany to labor exploitation. There are Germans who could work certain jobs, but employers want workers who would not demand higher wages or salaries. Germany has taken a number of migrants, asylum seekers, and refugees. Syrians, Ukrainians, and now Kenyans are becoming a part of Germany. Immigration has become a major issue and has caused a surge in far-right political parties. Kenyan doctors, nurses, and teachers can now come to work in Germany. The loss of these professionals only hurt Kenya. Most will probably not return to Kenya and seek to get German citizenship. This only makes Germany economically more powerful by using the Kenyan workforce. President William Ruto's choice could have negative consequences long after his administration. Rarely does Germany send its expertise to African countries. Kenya must find an incentive to keep their workforce in the country. Increasing pay and the standard of living will make citizens remain in Kenya.