“If Trump goes out with his, the United States will lose its global influence, the standards of life of Americans will decrease, even for those who support it, and the world will not be safer, safer or more prosperous.” This is the opinion considered of the winner of the Nobel Prize Joseph E. Stiglitz as expressed in his latest book ‘Globalization and his discontent reviewed: Anti-Globalization in the Trump era’.
When observing the latest developments, Stiglitz’s opinions are supported by observers who say that two main priorities of foreign policy, which end the wars in Gaza and Ukraine, both appear in the type of messy details and conflicting agendas that often obstruct lasting peace.
Stiglitz hopes that the United States and the world will leave this episode with a greater resolution to create a fairer and better globalization, as you have advised for a long time.
Protests citing complaints against
The Trump agenda, ranging from social to economic matters, was carried out in the 50 states of the United States on April 5.
At the beginning of the 1970s, the emerging strategy for economic -centered economic development was replaced by the financial globalization led by the west, with most economies finally affected by the balance of payments and the expansion of disparity in income between them and within the nations.
As Trump’s protectionist policies draw the global order, experts warn about the deepening of inequality, economic instability and the decrease in the global influence of the United States
To end the global disorder, the time has come for public policies to change towards the growth and development of evolution for the well -being of people, with the international community that extends mutual cooperation for its implementation step by step.
It is also clear because of the tariff policies of the United States that financial globalization promoted by the United States has also become counterproductive over the time in many ways for the US economy.
When elite wealth exceeds economic growth and capital flows to unproductive sectors, deepens inequality and suffocates real progress, says analyst Ali Asad knows from the University of Lahore management sciences.
That is evident by the narrative in the book entitled ‘The Lords of Easy Money: how the Federal Reserve broke the US economy’, by Christopher Leonard, business journalist of the New York Times.
In many important ways, he writes that the 2008 financial accident never ended. It was a long accident that paralyzed the economy for years.
The dollar, for decades a safe shelter, fell around 1.7pc on April 3, its highest daily fall since November 2022, after President Trump imposed import tariffs
The problems that caused him were almost without solving. And the financial accident was accompanied by a long collapse in the strength of American democratic institutions.
When the United States was based on the Federal Reserve to address its economic problems, it was based on a deeply defective tool. All the Fed money only extended the distance between the winners and the losers and laid the foundations for instability. “The value of the workers had decreased, but the value of other products was increasing. The Fed was ensuring it,” observes Mr. Leonard.
Trump has also opened so many fronts, confronting enemies and friends equally and bothering national interested parties with unilateral actions that tend more to destabilize the existing order instead of helping to build a new one.
Experts warn that the rate movement runs the risk of triggering a recession at home and provoking a commercial war. “If this commercial war continues through
Labor Day [September 1]The US economy will probably suffer a recession this year, ”Mark Zandi, chief economist of Moody’s Analytics, told AFP.
The dollar, for decades a safe shelter, fell around 1.7pc on April 3, its highest daily fall since November 2022, after President Trump imposed import tariffs. Stock markets also collapsed when the rates ignited the recession concerns.
It was not controlled, a crisis of trust in the dollar could also undermine its position as the world reserve currency, according to market comments.
The probable implementation of American tariffs imposed on April 2 can be seen as “the beginning of a march towards the independence of Europe,” said European head of the Central Bank Christine Lagarde to France Inter Radio.
The not -so -secret plan of the US administration is also to rebuild trade weakening the dollar, analysts say, adding a way of doing so would be to enlist foreign central banks in a coordinated effort to revalue their own currencies.
Where Trump, the tariffs and the destination of the dollar, the Scottish-American political economist, Mark Blyth, argues that US protectionist policies reflect a global economic rearrangement that was already underway.
Minutes before the markets opened in New York on April 7, Trump said his tariff reforms were “an opportunity to do something that should have been done decades ago.” “Don’t be weak! Don’t be stupid! Be strong, brave and patient, and greatness will be the result!” He urged.
A complete war is over us, since the era of the multilateral negotiation order based on rules is over, they say Dawn analysts. The American leader has made it clear that he would not reach an agreement with other countries unless the trade deficit is resolved.
Optimism is welcome, but we must be prepared to prepare for possible clashes.
Published in Dawn, The Business and Finance Weekly, April 14, 2025
