With “Day One,” which is how Trump characterized his first full working day in office American Nationalism takes front and center. The question is, is this a good or bad move for the United States economy. How Wall Street reacts might be a preliminary sign of the long-range effects of the new American Nationalism.
When I say, Wall Street, not just the overall up or down at closing, but how Trumps second executive order to pull out of the Trans-Pacific Partnership trade pact (TTP), along with his desire to renegotiate NAFTA effects individual stock categories.
Some things to consider: For the most part well-paying manufacturing jobs are a thing of the past. Even if manufacturing returns to the U.S. will companies hire more workers or find more ways to automate to increase profits? If they choose the latter, returning manufacturing to the U.S. will not create that many new, high-paying jobs. Another thing to consider is that high-tech is global with various players throughout the world combining to create technologically driven products. Now admittedly, the TPP had not yet passed Congress so it may be hard to judge what those effects may be. On the other hand, many corporations (many of which were based here in the U.S.) had started putting things into place to take advantage of TTP.
Lastly, when Ford announced that it was not going to build a plant in Mexico it sent the Mexican currency on a roller-coaster ride. One has to consider then, what a renegotiated NAFTA would do the stability of Mexico, and how an unstable Mexico would effect the U.S.?
There’s certainly more to consider in this new age of American Nationalism. As it plays out we will see whether or not it makes America “great again.”