Ted Bauman: Impact of the Donald Trump Policies on the markets.
Ted Bauman was born in Washington D.C and raised in the eastern shore of Maryland. He attended the State University of New York at Albany for his Undergraduate studies and later joined the Georgia State University – J. Mack Robinson College of Business for his Masters of Business Administration. He then immigrated to South Africa and joined the University of Cape Town for Postgraduate studies in Economics and History. He lived and worked in South Africa for 25 years, majoring on the non-profit sector to fund low-cost housing projects for the low-income income families. His funded project, Slum Dwellers International, has benefited more than 14 million people in more than 35 countries. Today, Ted Bauman is an economics expert who turns risky situations into economic opportunities. Following the recent rupture of the United States versus China trade war, the Trump Administration attempted to reprove China for the increased global competition, currency manipulation, and theft of trade secrets. The Chinese economy reacted by applying tariffs and import quotas to American goods which will lead to huge losses for companies such as Walmart.
According to prominent economists such as Ted Bauman, the application of tariffs bring about high costs and low benefits for the communities involved. Tariffs are a method of reducing trade competition between the United States and China, and the impacts cannot be accurately predicted. However, they have been proven to impact the material wellness of consumers and their innovation negatively. Bauman advises that trade war causes a rise in business transaction costs including transport costs, taxes and the time spent in completing the transaction. High transaction costs also force some companies to quit the market, leading to other negative impacts such as the high cost of availed goods, and decreased remunerations for the employees.
According to Ted Bauman, people are likely to make bad decisions when market information is uncertain. This particularly applies to the Donald Trump policies that are rendered unpredictable. Such uncertainty lowers the consumer and investor confidence leading to decreased economic opportunities. Ted Bauman pinpoints that the reduced competition reduces innovation levels and may lead to increased prices of the products. This is a benefit to the seller companies and a loss on the consumers.