Talking Tariffs and Trade Wars with Grace Blakeley and Kathryn Edwards
Apr 23, 2025
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Join economist Kathryn Edwards, known for her labor economics insights, and writer Grace Blakeley, a vocal critic of capitalism, as they dive into the complexities of tariffs and trade wars. They explore how U.S. trade policies are reshaping global trust and financial dynamics. The discussion reveals the potential decline of the dollar's dominance and the impacts of rising inequality and corporate behaviors in America. Listeners will discover the urgent need for collective action to address these pressing economic inequities.
Automating investments simplifies the process, promoting consistent investment habits and helping individuals build wealth gradually over time.
The growing economic disparity in the U.S. is fueling frustration among the excluded, potentially leading to social unrest and demands for equitable wealth redistribution.
A reassessment of the U.S. dollar's reserve status amid tariff volatility signals a critical shift in global finance dynamics and U.S. economic influence.
Deep dives
Simplifying Monthly Investments
Setting up recurring investments in stocks and ETFs can greatly simplify the process of investing. Utilizing tools such as the Fidelity app allows users to choose a schedule for automatic contributions, making it easier to stay consistent with investment goals. This approach reduces the burden of remembering to invest each month, potentially increasing an individual's investment discipline. By automating investments, users can build their wealth gradually without needing to actively manage the process every month.
Economic Imbalance and Class Rebellion
The economic system in the U.S. has disproportionately benefited the wealthy, particularly those with substantial assets and high-value 401(k) plans. This growing imbalance has led to frustration among those excluded from economic prosperity, essentially fostering rebellion against the existing structures. Observers note that this disparity will likely result in increased social unrest, as those left out of financial growth seek to have their voices heard. As a result, the prevailing narrative around economic success is being challenged by a desire for more equitable redistribution of wealth.
Tectonic Shifts in Global Finance
There are indications of a significant shift in the U.S.'s role in global finance, particularly concerning the dollar's status as the world's reserve currency. Factors such as tariffs and economic volatility are causing investors and other countries to reevaluate their reliance on U.S. treasuries. Historically, U.S. government bonds have been perceived as the safest assets; however, growing concerns regarding the government's ability to maintain this stability are becoming apparent. A decline in the dollar's reserve status could trigger a major reevaluation of the global economic order and significantly impact the U.S. economy.
Trust and Perception in International Trade
A notable comment reflects that many countries may not have trusted the U.S. in a traditional sense but were primarily motivated by financial necessity. Consequently, the perception of the U.S. as a reliable trading partner is under scrutiny following erratic tariff announcements. Many involved in international trade are reconsidering their dependence on the U.S. due to the shifting dynamics of global commerce and potential alternatives. This reassessment raises questions about the long-term implications for U.S. economic power and its capacity to maintain its influence in global markets.
Challenges of Manufacturing and Job Creation
Concerns about the loss of manufacturing jobs in the U.S. are compounded by the realities of modern automation, which has changed the landscape of labor and employment. The premise that revitalizing manufacturing will inherently lead to job creation is increasingly challenged, especially as technology continues to advance. As automation takes center stage, employers are finding ways to reduce labor costs while producing more efficiently. This trend indicates that merely focusing on bringing jobs back may not resolve the deeper issue of job availability in a changing economic environment.
Two of our most popular guests—economist Kathryn Edwards (aka Keds) and writer Grace Blakeley—return today for a timely conversation about tariffs, trade wars, and damaged trust. See how they weighed in on the big-picture ideas I couldn’t stop thinking about in this expansive roundtable.
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