The Pizza Oven Window Theory
That Trump Applies
What is the theory and what does it mean in the global economy?
It means that a large open trade policy towards global competition harms the economy and causes an economic slowdown.
While closing to protect local products leads to inflation.
Therefore, countries always strive to create this balance so that the oven performs its essential tasks, which is to cook the pizza and not burn it or undercook it.
This is exactly what Trump is doing with global trade competitors, and it doesn't seem that he is trying to create an economic catastrophe as much as he is trying to create this balance.
Especially with China, which has excelled greatly in the global trade arena and has become a major threat to the United States.
This policy aims to create understandings that will restore global trade balance and bring the United States back to the forefront.
It seems that Trump is not concerned about what is happening to the global economy as much as he is interested in rebuilding America's trade power and sovereignty again.
Will this theory succeed?
Or will it lead to dire disasters? Perhaps it recalls the Great Depression of 1929 or, at the very least, the 2008 catastrophe.
This is what the coming days will reveal, whether countries around the world will return to their trade understandings with America or if we will witness a global economic collapse that surpasses what happened in 1929.
#Economic_Files
Mujahid Ali