Huge amounts of money are circulating on the stock exchange, which either disappear or reappear. Fewer and fewer people are willing to engage in real production because it is much faster to earn on the stock exchange.
The global financial system discourages engaging in real business. This is especially noticeable when productive forces are concentrated in China, while in the USA they are becoming fewer. Trump's arrival and changes in tariff policy are a sign of how the USA has brought itself to such a state.
In the USA, car production is taxed at the state level (24%) and at the federal level (2%). A total of 26%. If you produce a car in the USA, you pay 24% to the state and 2% to the federal center. However, if you bring a car from Mexico or Canada, you only pay 2%.
Where is it more profitable to produce cars for sale in the USA? The answer is obvious - not in the USA. That's why Detroit is declining, factories are closing. Production is moving to Canada, where Japanese companies have their own factories. Cars are brought from Europe to Mexico.
What does Trump do? He imposes tariffs on the import of various goods. Now more attention is paid to the country principle, but let's take tariffs on cars. Trump set them at 25%. Now, if you bring a car from abroad, you pay a 25% tariff and a 2% income tax - a total of 27%. And if you produce a car in the USA - 26%.
At the same time, for Chinese manufacturers, the tariffs will be even higher. By imposing these tariffs, Trump is trying to bring production back to the country.
