The G7 Summit ended on a bit of a sour note with trade disputes with some of America’s top allies. The U.S. and other nations are firing up for a tariff war of sorts. Creighton University Economist Ernie Goss says this issue needs to be handled carefully.
Goss says, “For an economist, this is not good news. We are mostly in favor of free and fair trade. If this is a negotiating strategy, fine but I don’t know. If it is a negotiating strategy to bring down tariffs and to facilitate trade then that is a good thing. Otherwise, no. We are all losers in a trade war.”
Goss says the trade balance is more of a function of our growing economy. As we grow faster the trade balance becomes more negative. That has been a trend over the past four or five decades and Goss says that is not a bad thing as the investment comes back from those countries in lowering of our interest rates.
However, Goss says, “We would like to see more exports. The U.S. is the number one trade nation on the face of the earth. It goes back and forth between China and the U.S. so we are the big kahuna in terms of trade importance.”
When it comes to Nebraska’s economy, Goss says we are seeing the Goldilocks effect where conditions are not too hot or cold. He says it is full steam ahead for region’s economy but we will see higher interest rates to stem the inflationary pressures he is seeing in his survey and the national survey.