The War, Will American Loss?

Trade war (https://www.ft.com/)

In the physical wars, let’s say World War 1 and 2, and Gulf War, American come out as the winner technically. How about with current, called as “trade war” launched by Donald Trump to the rest of the world? Will US win? 

What the reason behind trade war? US balance of trade recently was negative US$ 810 billion in goods and US$ 566 billion in goods and services, means deficit. Trump believed that deficit was due to an un-fair trade. To counter this, then US president announced tariff of billion dollars on imported goods.

US trade deficit by countries for 2017 are following (Amadeo, 2018): 

1. China – worth of US$ 375 billion trade deficit. 

2. Canada – worth of US$ $18 billion trade deficit. 

3. Mexico – worth of US$ 71 billion trade deficit. 

4. Japan – worth of US$ 69 billion trade deficit. 

5. Germany – worth of US$ 65 billion trade deficit. 

First, Trump imposed 25% tariff on steel and 10% on aluminum come from Canada, South Korea, Mexico, Brazil, China and European countries. Then, announced tariff worth US$ 50 billion to Chinese goods and planned to do so to European countries (especially Germany), Canada, Mexico and India. 

Sure, those countries will retaliate, China government announced tariff of US$ 32 billion on US goods as first round retaliate and will be followed by other numbers and lists soon. Canada will impose tariff of US$ 12.8 billion on US exports effective next month (July 2018). Other countries vow to do the same as soon as possible. 

On China, Trump re-announced another US$ 200 billion of duties if China responds by July 2018. The trade war not calm down but escalates in sight. For certainly, no countries experienced with this kind of trade war in modern era. 

What effect on the US economy? Since rhetoric start, stock market tumbled. When I wrote this article, Dow Jones future index sank by 0.9% (June 19, 2018). As investors fear of trade war, stock seem uncertain more. 

Producers and consumers started to feel effect in the US. An American industrial materials and soybeans export are disturbing since April 2018. Consumer feeling higher price on certain goods. If this trend continue, inflation picks up sooner rather than later. Recession will come after globally, not only in the US.    

Who will be the winner and loser? Everybody will be the loser, both US and other countries generally. Unluckily, no winner at all. 

Reference 

Amadeo, K. (2018). “U.S. Trade Deficit by Country, with Current Statistics and Issues.” Retrieved from  https://www.thebalance.com/trade-deficit-by-county-3306264

     

Moving to Vermont? You Will Get Pay for US$10K

Decker Towers with 124 feet (38 m) tall is the tallest building 

in Vermont (credit to nerej)  

Yes, you will get US$10 thousands for moving to Vermont. State government proposed a budget for 100 people who eager to live in rural area start in 2019, another 100 in 2020. Additional 20 each for consecutive years.  The new comers should do a non-government job. The program is first come first served. 

Vermont located of the Northeastern of USA, border with Canada (Quebec). In terms of size and population, Vermont is categorized as a small state. Population is about 623 thousand in 2017. State size is 9,616 square miles (mi²), natural landscape with primary forested. The capital, Montpelier, inhibited by less than 10 thousand, the tiniest capital of state in the USA.

State economics supported by agriculture (relate products), manufacture and service. These sectors have produced Gross Domestic Product (GDP) with value of $31.77 billion annually. Median household income is $56,990, ranked 20^th in the nation in 2015. Un-employment rate of 3,1% is one of the lowest compared to other states.

Some unique facts of the Vermont are no McDonald restaurant in state capital, the first state to recognize the same couple married (in 2000), the largest producer of maple syrup and marble in the nation, many wooden bridges since 19^th century, no ocean border, no skyscraper, an independent country before joining USA, and the tallest building is 11 story (38 m tall).

Temperature is quite could with average of 43 ⁰F (6 ⁰C) yearly, but the coldest winter could reach 22 ⁰F or minus 5.6 C (-5.6 ⁰C) with snow fall 120 inches (3 m). On January, the temperature even lower at 9.3 ⁰F (-12.6 ⁰C). Moreover, the Vermont is considered as the most rural state in the nation.

If you can adjust with “frozen” temperature, love snow, enjoy a quiet life and comfortable with rural area landscape, then Vermont might be good for you to move in. Settle permanently is required to get US$10 thousand subsidy.

Spike of Truck Driver Salary Reaches US$130 thousands

Walmart truck delivery

We experienced increase of 8% to 10% in weekly grocery (fruit, chickens, meat, vegetable) budget recently. The high prices of retail or grocery are believed due to delivery system, where there is massive shortage of truck drivers to move goods from producer to retailers, then to consumers.

Walmart supermarket and Amazon, among two giant companies, need at least 51 thousand truck drivers. Their goods delivery has delayed, thus caused high cost for storage and maintenance, then burdened to consumers. The shortage can’t be solved in short time and becoming worse in near future.  

Many companies offered pay and bonus up to US$130K per-year. Amazon and Walmart provided US$75 thousands for their own drivers and recruiting new driving with interesting pay and bonus. However, mostly driver income wasUS$45 thousand per-year.

Why massive shortage of truck drivers? Some drivers exit the job because of rough condition: far away from families, no respect from police and no respect from other road users (private car drivers).

Many truck drivers did not recommend this job to their own family members and close friends. Do you interest in?