Economy

Analysis: Trump may have another plan with his tariffs

Donald Trump has called tariffs "the most beautiful word in the dictionary" and by raising tariffs against both allied countries and China, he hopes that companies will relocate their production to the United States. That's what John Auhters writes in an analysis for Bloomberg.

Many worry that Trump will trigger a trade war with China, but the presidential candidate may have another plan: to pressure Beijing into a major trade deal. However, it is unclear whether Trump has the diplomatic skills to carry out such a thing.

The Wall Street Journal's Greg Ip writes that Trump's policies would completely reshape world trade. Tariffs could rise to the highest since the Great Depression of the 1930s.

In the short term, some prices would inevitably increase in the US and dampen growth. In the longer term, it is much more uncertain what would happen. Ip is on the same track as Authers, maybe it's about pushing other countries to the negotiating table.

Whether Trump succeeds or unleashes an all-out trade war with China, increased tariffs are not something you just roll back. The high tariffs of the Great Depression remained for decades.

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Unlucky generation soon catching up with baby boomers

Millennials – people born between 1981 and 1996 – have sometimes been called the world's unluckiest generation. But it is a truth that can be questioned, writes Barron's.

According to data compiled by the Federal Reserve in St. Louis, millennials are doing better than baby boomers at the same age. Among other things, millennials' wealth quadrupled between 2019 and 2022, despite the pandemic.

However, the differences within the generations are large. While the financial development among the post-war boomers was more even, it spreads significantly among the 80s and 90s. This is due, among other things, to the fact that the wealth increases significantly for the groups that own their accommodation.